“Tariffs are a tax increase on American households and manufacturers.”
This tax season, Republican lawmakers and economic leaders are reminding the American public: tariffs are taxes on consumers.
From constitutional concerns about executive overreach to warnings about rising consumer prices, an increasing number of Republican lawmakers worry that tariffs will weigh American families down with burdensome costs despite the recent 90-day pause on some tariffs.
A study from the Yale Budget Lab states that President Donald Trump’s April 2 tariffs will cost American households $2,100 a year. Combined with the rest of the 2025 tariffs, this cost balloons up to $3,800.
Economists confirm that not only are these tariffs a tax on American buyers, but they consistently negatively impact the consumer. With a global tariff of 10% on all imports still in effect, American buyers are sure to feel the pain in their wallets.
On this Tax Day, many Americans are left wondering: How will tariffs hurt my bottom line?
Read What Republicans And Economic Experts Are Saying:
National Taxpayers Union (NTU) President Pete Sepp: “Tariffs are a tax increase on American households and manufacturers.” (National Taxpayers Union, 2/1/25)
Senator Rand Paul (R-KY): “Tariffs are taxes, and the power to tax belongs to Congress – not the President. Our Founders were clear: tax policy should never rest in the hands of one person. Abusing emergency powers to impose blanket tariffs not only drives up costs for American families but also tramples on the Constitution. It’s time Congress reasserts its authority and restores the balance of power.” (FOX Business, 4/9/25)
- “Tariffs are taxes and Americans are paying the price.” (ABC News, 4/7/25)
Senator Ted Cruz (R-TX): “Tariffs are a tax on consumers, and I’m not a fan of jacking up taxes on American consumers, so my hope is these tariffs are short-lived, and they serve as leverage to lower tariffs across the globe … If we’re in a scenario 30 days from now, 60 days from now, 90 days from now with massive American tariffs and massive tariffs on American goods in every other country on Earth, it’s a terrible outcome.” (ABC News, 4/7/25)
- “I’m seeing a lot of Republican cheerleaders that are kind of reflexively defending what the White House is doing. Listen, I love President Trump, I’m his strongest supporter, and I think he’s doing incredible things as President. But here’s one thing to understand, a tariff is a tax.” (The Houston Chronicle, 4/10/25)
Senator Mitch McConnell (R-KY): “As I have always warned, tariffs are bad policy, and trade wars with our partners hurt working people most. Tariffs drive up the cost of goods and services. They are a tax on everyday working Americans.” (Axios, 4/4/25)
Murat Tasci, Senior U.S. Economist, J.P. Morgan: “At the end of the day, tariffs are a tax on imports. How much this tax raises final consumer prices depends on factors, such as the elasticity of demand and the extent of exchange rate movement. However, the tax incidence nearly always falls on domestic sellers and consumers, and not foreign producers.” (J.P. Morgan, 4/7/25)
Gary Shapiro, CEO & Vice Chair, Consumer Technology Association (CTA): “President Trump’s sweeping global and reciprocal tariffs are massive tax hikes on Americans that will drive inflation, kill jobs on Main Street, and may cause a recession for the U.S. economy. These tariffs will raise consumer prices and will force our trade partners to retaliate.” (CTA, 4/2/25)
Mark Chenoweth, President, New Civil Liberties Alliance: “A tariff is a tax on Americans’ commerce with other countries. The Constitution assigns Congress exclusive power to impose tariffs and regulate foreign commerce.” (USA Today, 4/8/25)
Matt Preist, CEO, Footwear Distributors and Retailers of America (FDRA): “The tariffs act as taxes, driving up the costs of everyday goods like shoes, significantly burdening American families and businesses.” (FOX Business, 2/5/25)
Susan Schwab, Former U.S. Trade Representative under President George W. Bush: “Anyone who suggests a tariff is not a tax needs to go back to school.” (The Wall Street Journal, 4/3/25)
Steve Moore, Former Senior Economic Advisor under President Donald Trump: “I mean, Elon Musk is right that, you know, tariffs are taxes. They can hurt the economy. We’ve got to have the most productive sector of the economy.” (The Hill, 4/9/25)