Trump's proposed tariffs could raise costs for American families by $2,600 a year

President-elect Donald Trump plans to impose significant tariffs on imports, including 25% on goods from Mexico and Canada and 10% on Chinese imports. These tariffs are expected to raise costs for American families by up to $2,600 annually. Economists warn that these tariffs will likely reduce after-tax incomes by 4.1%. The increased costs will affect everyday items, as importers will pass on the tariff fees to consumers. Trump has also suggested replacing federal income tax with tariffs, but economists argue this would create a $2 trillion revenue shortfall. Current tariff proposals would not generate enough revenue to offset the loss from income taxes.