I have anecdotal experience that makes the ~$1,600 per house hold feel like an underestimate.
We purchased a Subaru Outback right around the first round of tarrifs. We were in the market for the base trim, no bells & whistles. We ended up getting the highest trim bc all the remaining base trims were post-tarrifs and and cost $3.5k more than the pre-tarrif higher trim that was already in the lot.
Mind you the Subaru outback was assembled in IL, USA so it is not just imported entirely from Japan.
And that's not considering all the other "consuming" we do (which is quite limited being outdoor ppl).
>We purchased a Subaru Outback right around the first round of tarrifs. We were in the market for the base trim, no bells & whistles. We ended up getting the highest trim bc all the remaining base trims were post-tarrifs and and cost $3.5k more than the pre-tarrif higher trim that was already in the lot.
The average car on the road is ~15 years old. The actual lifetime is likely higher. Therefore for proper tariff accounting, your subaru's contribution to this year's tariffs should be 3500/15 = $233, not $3.5k. Not to mention much of the items people buy are either:
1. domestically produced (this includes housing, the biggest cost for most people)
Gruez was spot on, our last car was 15 years old. Though I don't know if his stat considered resold cars. We wouldve kept it too but the work it needed was $8k. Parts were available and already imported, just that mechanics in the area had all raised their labor rate. I support liveable wages but that points to tarrifs having higher order effects than just the goods that they apply to.
We purchased a Subaru Outback right around the first round of tarrifs. We were in the market for the base trim, no bells & whistles. We ended up getting the highest trim bc all the remaining base trims were post-tarrifs and and cost $3.5k more than the pre-tarrif higher trim that was already in the lot.
Mind you the Subaru outback was assembled in IL, USA so it is not just imported entirely from Japan.
And that's not considering all the other "consuming" we do (which is quite limited being outdoor ppl).