How Trump’s new tariffs could impact Americans

President Donald Trump is imposing a 10% tariff on imports from all countries, with even higher rates for Cambodia, Vietnam, China, the European Union, and more.

(CNN)- President Donald Trump is imposing a 10% tariff on imports from all countries, with even higher rates for Cambodia, Vietnam, China, the European Union, and more. Experts say these tariffs could affect Americans in several significant ways.

Many economists predict that U.S. businesses paying the tariffs will pass the costs on to consumers. CNN Chief Data Analyst Harry Enten estimates that it could cost American households thousands of dollars, potentially making up at least two percent of the median household income. However, the Trump administration downplays this concern, with Treasury Secretary Scott Bessent suggesting that businesses don’t have to pass on the costs or that foreign producers could absorb them.

There are also warnings of a potential economic slowdown. Some experts predict a three-percent reduction in GDP by 2025, while J.P. Morgan forecasts a global recession if the tariffs remain. Economists recall that a trade war in the 1930s deepened the Great Depression.

If the stock market doesn’t fully recover, retirement funds could face losses. Additionally, if inflation rises too sharply, the Federal Reserve may increase interest rates, making loans and mortgages more expensive.

On a more positive note, some U.S. manufacturers may benefit from reduced competition, with Senator Tommy Tuberville (R-AL) arguing that the tariffs could help protect American industries.