Democrats are sounding the alarm over President Trump's proposed tariffs, warning they could cost U.S. households an average of $2,512 in 2026. This represents a significant increase from last year's estimated $1,745.
Senator Maggie Hassan criticized the administration's continued push for tariffs, stating, "As American families struggle with high costs, the President keeps choosing to impose new tariffs that will push prices even higher."
The White House, however, has dismissed the report as "phony." Spokesman Kush Desai asserted, "President Trump will continue using tariffs to renegotiate broken trade deals, lower drug prices and secure trillions in investments for the American people."
This comes after the Supreme Court ruled last month that President Trump lacked the authority to impose significant tariffs under the International Emergency Economic Powers Act of 1977. The government is now facing approximately $175 billion in refunds to importers.
In response, the administration is reportedly exploring new levies, including a 10% tariff under Section 122 of the Trade Act of 1974, potentially rising to 15%. Additionally, a Section 301 investigation has been launched into 16 trading partners, including China and the European Union, over alleged "unjustifiable" or "discriminatory" trade practices and overproduction of goods.
Democrats argue that consumers ultimately bear the brunt of tariffs, as importers pass costs on and domestic producers raise prices due to reduced competition. This renewed tariff focus coincides with rising energy and commodity prices, exacerbated by the ongoing war in Iran, adding to voter concerns over living costs ahead of the midterm elections.