Trump's Tariffs: A $438 Billion Blow to the US Economy, May Cost Every US Household $3487

International News: The latest model prepared by Steven Vass of The Conversation minutely calculates the likely effects of President Donald Trump's "Liberation Day" tariffs on US households and the country's GDP. This new model may cost every US Household $3487.

Tariff Rates and Affected Countries

The White House has announced reciprocal tariffs on several trade partners, with the minimum baseline for each country set at 10%. The tariff rates vary by country
- *Vietnam*: 46% tariff hit
- *Thailand*: 36% tariff hit
- *China*: 34% tariff hit (in addition to an existing 20% tariff, totaling 54%)
- *Indonesia*: 32% tariff hit
- *Taiwan*: 32% tariff hit
- *Switzerland*: 31% tariff hit

Potential Economic Impact

According to Vass's model, if other countries impose equivalent tariffs on US goods, the US GDP could take a significant hit:
- *$438.4 billion*: Potential decline in US GDP (1.45% decrease)
- *$3,487*: Potential decrease in GDP per household per year, based on 126 million households

Global Market Reactions

The announcement of Trump's tariffs has led to significant losses in global markets:
- *Japan's Nikkei 225 index*: Lost nearly 9% shortly after market opening
- *China's CSI300 blue-chip index*: Fell 4.5%
- *South Korea's Kospi index*: Fell 4.34%
- *South Korea's small-cap Kosdaq*: Dropped 3.48%

Potential Impact 

The potential impact of Trump's tariffs on US households and GDP is substantial. As global trade tensions escalate, it's essential to monitor the situation closely and consider the potential consequences for the US economy.