The Boomerang Effect of US Trade Tariffs
What happens when a country taxes incoming goods? In the US, this so-called protective shield has turned into a boomerang, coming back to hit American wallets. Since the Trump administration began slapping tariffs on global imports, everyday prices from eggs to medicines have soared.
Egg Prices Crack Records
According to the US Bureau of Labor Statistics, retail egg prices jumped to $6.23 per dozen in March. Experts at Newsweek warn that tariffs have inflated these costs, passing the burden directly to consumers.
Prescription Costs on the Rise
A study by the Pharmaceutical Research and Manufacturers of America projects tariffs will add $51 billion to annual drug spending, potentially lifting US drug prices by 12.9% if fully passed on to patients.
Inflation Expectations and Consumer Sentiment
The Federal Reserve Bank of New York’s Survey of Consumer Expectations shows median one-year-ahead inflation expectations climbed to 3.6% in April—the biggest monthly jump in two years. Meanwhile, the University of Michigan’s Consumer Sentiment Index fell to 50.8, the lowest since June 2022.
What’s Next?
As prices bite and sentiment sours, the economic burden of tariffs is crystal clear. For a globally connected audience, this story is a reminder: trade policy isn’t just about nations—it’s measured at checkout lines.
Reference(s):
Tariffs or taxes? The true economic burden of US trade policy
cgtn.com
