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Trump, Donald

Tariffs Under Trump: A Devastating Economic Reality Check

Strategic Insights

— 2 min read

U.S. Senator Patty Murray (D-WA) has sounded the alarm on the devastating economic impact of President Trump's tariffs, calling for an end to the "pointless trade war" that is driving up prices for working families and small businesses. Murray has been vocal in her opposition to Trump's tariffs, which have already raised retail prices for families by 5 percent and are expected to cost American households an average of $1,800 this year. The senator argues that Trump's tariffs are a form of taxation, imposed without congressional approval, and that they are having a disproportionate impact on small businesses and working families.

Key Takeaways:

  • The effective tariff rate in the U.S. is 18 percent, the highest tariff rate since 1934.
  • Trump's tariffs have already raised retail prices for families by 5 percent, and this year alone, they are expected to cost American households an average of $1,800.
  • A recent analysis from Yale Budget Lab found that Trump's tariffs will likely increase the number of Americans living in poverty by 875,000 in 2026.
  • A nonpartisan analysis by the Washington State Office of Financial Management found that if the current Trump tariffs stay in effect for the next four years, they will cost Washington state up to 25,000 jobs, and if Trump's "Liberation Day" tariffs are fully implemented, they would cost Washington state $2.2 billion and 31,900 jobs over the next four years.
  • Washington state has one of the most trade-dependent economies in the country, with 40 percent of jobs in the state tied to international commerce.
  • Senator Murray has held events across Washington state to hear from constituents and small business owners about the impact of Trump's tariffs, including in Tacoma, Yakima, Vancouver, Seattle, Skagit County, and Blaine.

The senator also highlighted the arbitrary nature of Trump's trade policies, citing as an example the additional 10% tariff on Canadian imports announced after the Canadian government ran a TV commercial featuring a speech by President Ronald Reagan denouncing tariffs.

Statistics:

  • The effective tariff rate in the U.S. is 18 percent.
  • Trump's tariffs have already raised retail prices for families by 5 percent.
  • American households are expected to pay an average of $1,800 in additional tariffs this year.
  • Trump's tariffs will likely increase the number of Americans living in poverty by 875,000 in 2026.
  • If the current Trump tariffs stay in effect for the next four years, they will cost Washington state up to 25,000 jobs.
  • If Trump's "Liberation Day" tariffs are fully implemented, they would cost Washington state $2.2 billion and 31,900 jobs over the next four years.
  • Washington state exported $57.8 billion of goods to the world in 2024, making it the 9th-largest state exporter of goods.

Sources:

  • Yale Budget Lab
  • Washington State Office of Financial Management
  • Office of the U.S. Trade Representative (USTR)
  • MIL OSI USA News (http://milnz.co.nz/mil-osi-aggregation/)
  • Contify.com

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