Day: April 4, 2025

There are a couple of major assumptions in Trump's math. The biggest assumption involves how much the tariffs would cause prices to go up. Here, the administration makes an eyebrow-raising admission: It guesses that for every 10% hike in tariffs, there will be a 2.5% increase in prices.

Translation: Trump's economists think that about a quarter of his tariffs will be passed onto American consumers in the form of higher prices.