American households could be shelling out an extra $2,400 each by 2019 due to tariffs resulting from President Donald Trump’s trade war, according to a new study — a combination of higher prices, lower wages and lower investments.
If the tariffs stay in place, the study says, the losses would add up to $17,300 per household by 2030.
The study, commissioned by the lobbying shop for Koch Industries and conducted by consulting firm ImpactECON, looked at the potential cumulative impact of tariffs. The conservative Koch political network has argued against the Trump administration's protectionist trade policies.
The Koch-commissioned study assumes that the administration's steel and aluminum tariffs and quotas remain, as well as retaliatory tariffs U.S. trade partners have put in place.
Also assumed is a 25 percent tariff on all Chinese imports, as well as retaliatory measures.
"Any trade debate should convey a clear understanding of the effect of the U.S.' and its trading partners' actions on consumers, businesses and supply chains," said Philip Ellender, Koch Industries president of government and public affairs. "At Koch, we support free and open exchange as a means to help people improve their lives. To that end, this report should serve as a unique and useful resource for policymakers as they consider the consequences of trade actions for all parties involved."