Trump’s Economic Instability Comes With Guaranteed Cost Increases
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Washington, D.C. – Donald Trump inflicts new chaos and economic uncertainty at a near-hourly rate, and his new, indiscriminate tariffs will raise costs for Americans across the board. Trump’s volatility and pledge to make the biggest tax hike in history have heightened the risk of a recession, jacked up energy prices, promised a cost hike of up to $15,000 on new cars, threatened Americans with job losses, and sent markets into a tailspin. It isn’t hard to see why people think Trump is raising costs instead of lowering them.
Climate Power Senior Advisor for Accountability Campaigns Alex Witt issued the following statement: “Donald Trump promised Americans he would lower prices, and just months into 2025, he’s raising them instead. Trump’s economic chaos has sent energy prices soaring, gutted clean energy investments, and now he’s adding insult to injury by hitting families with the largest tax hike in American history.
Trump knows his chaos is increasing the chance of widespread economic pain:
- Trump has refused to rule out his policies causing a recession this year saying there would be a “period of transition.” Goldman Sachs predicted that the recession odds were rising, while Moody’s has the chance of a recession over the next year at 35%. Meanwhile, consumer confidence has slipped to a twelve year low driven in part by concerns over tariffs.
Trump’s tariffs will send household prices soaring. They will:
- Cost American households up to $2,000 per year via his tariffs on China, Canada, and Mexico and his across-the-board tariffs could cause an average household loss of up to $4,200.
- Raise electricity costs by increasing the price of steel and aluminum needed for energy infrastructure like pipelines and transformers.
- Cost Americans at the gas pump by increasing prices by as much as 40 cents per gallon in some regions of the country.
- Increase prices for vehicles by as much as $15,000 per car and decrease sales.
- Damage clean energy manufacturing with increased costs to both businesses and consumers.
- Damage clean energy manufacturing and more with increased costs for infrastructure, like transmission lines and batteries, as well as electric vehicles and even homes.