1. United States
2. W.V.
3. Letter

The recent escalation of tariffs will have severe negative consequences for the economy and American households. According to analysis from the Budget Lab at Yale, the tariffs implemented so far in 2025, including the latest April 2nd announcement, have raised the average effective US tariff rate to 22.5% - the highest level since 1909. This massive increase in trade barriers will significantly raise consumer prices, with the overall price level projected to rise by 2.3% in the short run. This translates to an annual loss of $3,800 in purchasing power for the average American household. The impacts are highly regressive, with households in the bottom income deciles facing disposable income declines 2.5 times larger as a share of income compared to the highest earners. Annually, the lowest income households could lose around $1,700 on average. Key consumer goods like food, apparel, and vehicles face substantial price hikes, burdening all but the wealthiest. The economic costs extend far beyond the pocketbook as well. Real GDP growth is forecast to slow by 0.9 percentage points in 2025, and the level of GDP is expected to be 0.6% smaller in the long run - a permanent $180 billion annual drag. Global retaliation has compounded the damage, with major US allies like Canada facing punishing economic contractions over 2% of GDP in the long term. Rather than reordering global trade flows, the escalating tit-for-tat has destabilized economic relations and diminished American leadership. I urge an immediate reconsideration of these destructive and regressive tariff policies that threaten both domestic living standards and our international economic partnerships. Unilateral protectionism is an ineffective approach that will only breed economic insecurity at home and abroad.