Will Trump's Tariff's Cost American Families $3,500 a Year? What to Know

President Donald Trump's sweeping new global tariffs will cost the average American family more than $3,500 per year, according to an analysis from a group founded by former Vice President Mike Pence.

Advancing American Freedom, a conservative advocacy group, said the additional costs associated with the president's proposed international tariffs will make the "American Dream unaffordable."

Newsweek has contacted the White House and Advancing American Freedom for comment via email outside of regular working hours.

Why It Matters

Trump's plan to impose more tariffs on goods imported into the U.S has unsettled markets and risks sparking a global trade war. The president said the "Liberation Day" announcement will boost the U.S. economy and encourage companies to manufacture domestically.

What to Know

Trump confirmed his next wave of tariffs Wednesday afternoon, affecting dozens of countries. This includes a baseline of 10 percent, with other tariffs that he calls reciprocal having higher rates of up to 50 percent for some nations.

Among the major U.S. trade partners heavily affected by Trump's new tariff plans are China (34 percent, in addition to 20 percent tariffs already put in place by the Trump administration), the European Union (20 percent), and Japan (24 percent).

White House trade adviser Peter Navarro previously suggested Trump's tariff plans could raise about $600 billion in revenue for the United States annually.

Pence and Advancing American Freedom have come out against the new tariff plans, suggesting they amount to a major tax hike.

The analysis, shared on social media, suggests raising tariffs on imported goods in such a broad manner will cost American families more than $3,500 per year.

The group cited previous analysis from the Goldman Sachs financial group. In November 2024, Goldman Sachs said Trump's original plan to impose a 25 percent tariff on goods from Mexico and Canada and a 10 percent levy on China would generate just under $300 billion in revenue annually. The analysis warned that this would also cause a nearly 1 percent rise in inflation, resulting in higher costs for American consumers.

Other analysts have long warned that tariff plans would force companies to pass the increased costs on to customers globally, though the potential financial impact varies.

While criticizing Trump's tariff plans Wednesday, Democratic Senate Leader Chuck Schumer said they would cost the average American family around $5,000 more each year.

ING Economics said this could cost $1,800 per person, or $7,200 for a family of four, though a $1,350 rise for every American is more "probable."

The Budget Lab at Yale University said that Trump's imposing a previously cited potential 20 percent baseline tariff would cost American families as much as $4,200 a year.

Pence's relationship with Trump fell apart in the wake of the January 6, 2021, attack on the Capitol. MAGA figures have criticized Pence for speaking out against the president's tariff plans.

What People Are Saying

Former Vice President Mike Pence posting on X, formerly Twitter: "The Trump Tariff Tax is the largest peacetime tax hike in U.S. history. These tariffs are nearly 10x the size of those imposed during the Trump-Pence administration and will cost American families over $3,500 per year."

Advancing American Freedom posted: "These extra costs will make the American Dream unaffordable, as everyday Americans are still recovering from four years of Bidenflation."

President Donald Trump in a Wednesday speech: "For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike. Our country and its taxpayers have been ripped off for more than 50 years, but it's not going to happen anymore."

Democratic National Committee Chair Ken Martin in a statement: "Donald Trump is actively driving the economy off the rails—and he doesn't care how much 'pain' he's causing in the process. Instead of trying to reel back the tailspin he's plunging the U.S. economy into with his chaotic and reckless agenda, Trump continues to set working families' hard-earned dollars on fire."

Scott Paul, president of the Alliance for American Manufacturing, in a statement on Wednesday: "Today's trade action prioritizes domestic manufacturers and America's workers. These hardworking men and women have seen unfair trade cut the ground from beneath their feet for decades. They deserve a fighting chance. Our workers can outcompete anyone in the world, but they need a level playing field to do it. This trade reset is a necessary step in the right direction."

MAGA Criticism of Mike Pence

U.S. Commerce Secretary Howard Lutnick posted on X: "Mike Pence is just bitter. These tariffs are the definition of America First, which is a concept he doesn't understand."

Republican Ohio Senator Bernie Moreno wrote: "Career politicians like Mike Pence are part of the problem. They did nothing for decades while our industrial sector was gutted. President Trump is finally reversing their failed policies and fighting back for American workers. That's exactly what we saw today."

What Happens Next

The 10 percent baseline tariffs will take effect April 5, with the reciprocal tariffs coming into force April 9.