President-elect Trump has promised to impose 25% tariffs on all goods imported from Canada and Mexico, and tariffs as high as 60% on goods coming from China on day one of his new administration. What will these protectionist policies accomplish?

Under a scenario with a broad 10% tariff and a 60% China tariff, the effect on households, even if there is no tariff retaliation, would be an additional $2,421 per household in 2023 dollars according to the Budget Lab at Yale University,

President-elect Donald Trump’s promise to impose stiff tariffs against America’s three biggest trading partners is widely expected to push prices higher, which would set the stage for the Federal Reserve to stop cutting interest rates and possibly raise them instead.

While Trump imposed tariffs on foreign goods during his first term, he is promising to go much bigger this time around.

On Monday, Trump threatened to impose new tariffs on Mexico, Canada and China – the United States’ three biggest trading partners – as soon as he takes office, on Jan. 20.