President Donald Trump on Wednesday announced a baseline 10% tariff on imports for almost all countries, but some countries, like China, face a much a steeper rate.
"It is a huge change to the economic rules of the road that we've lived under for the past 30 years," said University of Kansas labor economist Dr. Donna Ginther.
The tax on imports has sparked a trade war as other countries levy their own tariffs on U.S. goods. The stock market has plummeted in response, and the Federal Reserve is monitoring whether to adjust interest rates.
Experts warn that consumers can soon expect to pay more for all goods not entirely produced in the U.S., including phones, cars and coffee — costing the average households thousands of dollars a year.
"There is nowhere to hide with respect to these tariffs," Ginther said. "Every good that's imported to the United States is touched by a tariff that varies depending on the country it comes from. It's going to touch the entire economy and that's why the markets are reacting so strongly."
- Dr. Donna Ginther, director, Institute of Policy and Social Research, University of Kansas
