Republican former president and 2024 candidate Donald Trump has mooted an across-the-board tariff and a higher rate on Chinese goods. Photo: Alex Wroblewski / AFP/File
On Chinese goods, Trump floated levies of 60 percent or higher, warning last month:"You screw us and we'll screw you." Those new consumer costs translate to at least 1.8 percent of GDP, the nonpartisan Washington-based institute said, also noting the potential negative effects of foreign retaliation and lost competitiveness.Extending Trump's tax cuts for the next decade would add $4.6 trillion to the deficit, according to a report this month by the Congressional Budget Office , a nonpartisan federal agency.
Tariffs also act as a tax on consumption, and lower-income households spend a much larger share of their income while wealthier households can save more.