Donald Trump has proposed imposing new tariffs ranging from 10-20% on most imports and up to 60% on Chinese goods, aiming to protect U.S. industries. Economists warn that these tariffs could raise consumer prices and risk a trade war, potentially harming U.S. exporters and the economy. The Peterson Institute for International Economics suggests such tariffs could cost the average American household over $2,600 yearly as companies pass on the costs. The Tax Foundation predicts these tariffs could decrease long-term economic growth by 0.8%, negating some benefits of Trump's tax cuts. Although supporters claim tariffs would aid U.S. manufacturers, complications arise in the energy sector, where the U.S. still imports significant oil despite being a major producer. Political repercussions are also possible, as past increases in gasoline prices have negatively impacted voter sentiment towards political leaders.
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