1 hour ago
Last Updated:February 10, 2026, 23:50 IST
Trump's tariffs cost US households Rs 90,572 in 2024, projected to rise to Rs 1,17,744 in 2025, with average tariff rates jumping to 10%, the highest since 1946.
According to new research from the nonpartisan Tax Foundation, Trump's tariffs "the largest U.S. tax increase as a percent of GDP since 1993". (Getty Images via AFP)
US President Donald Trump’s tariffs have cost the average American household $1,000 last year and it will likely rise this year to $1,300 per household if the tariffs remain, according to new research from the nonpartisan Tax Foundation.
According to ABC News, the research called Trump’s tariffs “the largest US tax increase as a percent of GDP since 1993" suggesting the president’s signature economic policy is exacerbating cost of living concerns at a time when many households are grappling with persistently high prices.
The think tank stated that the federal government last year collected $264 billion in total tariff revenues. It further stated that the tariffs will offset most of the economic benefits of the new tax cuts from Trump’s signature tax law that came into force this year.
Also Read: After India, Bangladesh Signs Trade Deal With US: Should New Delhi Be Worried?
ABC News quoted White House spokesman Kush Desai saying in a statement, “America’s average tariff rate has increased by nearly tenfold in the past year — while inflation has actually cooled, real wages have risen, GDP growth has accelerated, and trillions in investments continue pouring in to make and hire in America."
The tariffs had fluctuated throughout 2025 as Trump-led administration signed several trade deals, especially affecting the cost of electronics, toys and cars that aren’t manufactured domestically and foods that are grown abroad. The price of coffee rose by 33.6%, ground beef by 19.3%, romaine lettuce by 16.8% and frozen orange juice by 12.4%, according to the Bureau of Labor Statistics.
ABC News cited the Tax Foundation data stating that the average effective tariff rate in the US has surged from around 2% in 2024 to roughly 10% in 2025, the highest since 1946. The most recent government data shows the annual inflation rate in December was 2.7%, roughly the same rate as when Trump took office.
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Washington D.C., United States of America (USA)
First Published:
February 10, 2026, 23:29 IST
News world Trump’s Tariffs Cost The Average US Household Over Rs 90,000 in 2025: Report
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