Trump argues that his economic policies will lead to a brighter tomorrow by bringing business back to American shores and cutting illegal immigrant competition in the labor market. However, many analysts have a bleaker economic outlook for the next four years, predicting that the price of many goods will rise.
Trump has spoken in favor of protectionist tariffs on international imports which will limit Americans’ access to cheaper products. Without access to those less expensive options, lower and middle-class families will struggle.
Donald Trump has suggested a 45% tariff on Chinese-made goods, which economists predict would lead to a price increase of around 10%.[i]
Another product expected to experience a significant price hike is oil. Contrary to popular belief, the oil that will travel through that controversial pipeline is not intended for American consumers, rather it is headed to markets in Latin America and Asia.[ii] In fact, a portion of the oil, usually reserved for midwestern refiners, would be rerouted. A report issued by the nonprofit Consumer Watchdog in 2013 predicted consumers would pay 20 to 40 cent more to fill up.[iii]
And finally the long-promised wall. Trump's promise to make Mexicans fund his border wall through import taxes is textbook “cutting off your nose to spite your face.” Those taxes are going to be felt by American consumers. Cars, imported fresh produce, and alcohol are some items to predicted to see significant price hikes.[iv]