Trump’s pricing thrust is a race against time and the potential counterposter of voters

Washington (AP) – President Donald Trump New extensive prices Inverting a global trend of several decades of decrease in commercial barriers and are probably, according to economists, to increase the prices of Americans by thousands of dollars each year while heavily slowing the US economy.

The White House plays that other countries will also suffer enough pain to open their economies to American exports, leading to negotiations that would reduce the prices imposed on Wednesday.

Or, the hope of the White House, companies will reverse their movements to the world supply chains and will bring more production to the United States to avoid higher import taxes.

A key question remains: how will the Americans react?

But a key question for the Trump administration will be how Americans react to the prices. If prices increase significantly and jobs are lost, voters could turn against tasks and make them more difficult to keep them in place for the time necessary to encourage companies to return to the United States

The Yale Budget LAB estimates that the Trump administration prices would cost the average household 3,800 in higher prices this year. This includes the universal rate at 10% plus of the much higher prices in around 60 countries announced on Wednesday, as well as previous import taxes on Steel, aluminum And cars. Inflation could exceed 4% this year, from 2.8% currentlyWhile the economy can barely grow, according to estimates by Nationwide Financial.

Investors reversed the new functions on Thursday, with the S&P 500 index Lower 4.8% At the end of trading, its worst day from the pandemic. The Dow Jones plunged more than 1,600 points.

However, Trump was optimistic Thursday when he was asked about the fall in the stock market.

“I think it’s going very well,” he said. “We have an operation, as when a patient is operated and it is a great thing. I said it would be exactly like that.”

The average price of the United States could reach almost 25% when prices are fully implemented on April 9, economists estimate, higher than in more than a century and higher than the 1930 Smoot-Hawley prices which are largely blamed for the worsening of the great depression.

“The president has just announced the de facto separation of the American economy of the world economy,” said Mary Lovely, principal researcher at the Peterson Institute for International Relations. “The scene is set at higher prices and slower long -term growth.”

Commerce secretary Howard Luxe said that policies will help markets to open abroad for American exports.

“I expect most countries to really start to examine their trade policy towards the United States of America and stop taking us,” he said on CNBC on Thursday. “It is the reorganization of fair trade.”

Mixed feelings among Americans so far

Bob Lehmann, 73, stopped by a better purchase in Portland, Oregon, to buy a keyboard on Wednesday. He opposed the prices. “They will increase prices and make people pay more for daily life,” he said.

Mathew Hall, a 64 -year -old painting entrepreneur, said he thought that prices were a “good idea” and that potential short -term price increases were worth it.

“I believe that in the long term, it will be good,” he said, adding that he thought that the United States had been enjoyed.

But a former Trump’s first trade manager, speaking under the guise of anonymity to speak frankly about the impact, suggested that the Americans, including those who voted for Trump, could find it difficult to accept rigorous duties.

The Americans “have never faced prices like this,” the former official said on Thursday. “The impact downstream on clothing and shoes stores, it will be quite important. So we will have to see how Trump voters see this … and how long their support for these policies is going on.”

On Thursday, the automaker Stellantis, which has the Jeep, Citroen and Ram brands, said that it would temporarily stop production in factories in Canada and Mexico in response to the 25% tax on imported cars. Reduced production means that the company is temporarily dismiss 900 workers to plants in Michigan and Indiana.

Some exporters abroad can reduce their prices to compensate for some of the prices, and American retailers could also eat part of the costs. But most economists expect a large part of the prices to go at higher prices.

Clothes, shoes, furniture could become more expensive

Prices will reach hardly from many Asian countries, the rights to Vietnamese imports going to 46% and on Indonesia at 32%. The prices on certain Chinese imports will reach 79%. These three countries are the main sources of imports of American shoes, Nike making about half of his shoes last year and a third of his clothes in Vietnam.

The Yale Budget Lab estimates all Trump’s prices this year will increase the prices of clothes by 17%.

On Thursday, the Home Furnishing Association, which represents more than 13,000 American furniture stores, predicted that prices will increase prices between 10% and 46%. Vietnam and China are the best furniture exporters to the United States

He said that Asian’s manufacturers compensate for some of the costs by reducing their products and reducing ocean freight rates, but that will not be enough to avoid price increases. Even furniture made at the national level often rests on imported components.

“While many industry members support the long -term objective of Reshering Fabriching, the reality is that it will take at least a decade to develop domestic production,” said Home Furnishings Association, Shannon Williams, in a press release. “Allowing, forming a qualified workforce and managing the higher costs of American manufacturing are significant obstacles.”

At the Gethsemane Garden Center in Chicago, there are tulip bulbs, jaws and Canadian cultivated hyacinths, although only about 5% of their plants are imported. Thousands of Canada lemon cypresses are sold all year round and Canadian mothers are sold in the fall.

Regas Chefas, whose family owns the center for decades, says that not all prices will be transmitted to customers.

“We are going to absorb part of the increase. Producers will absorb some of the increases, then customers will pay a little higher price,” he said.

The Consumer Brands Association, which represents Coca-Cola, General Mills, Nestlé, Tyson and Del Monte as well as Procter & Gamble and Colgate-Palmolive, said that her societies were already making the majority of their property in the United States

But there are ingredients and critical entries – such as wood pulp for hygienic paper – which are imported due to rare domestic availability. Cinnamon is harvested in trees that cannot survive in the United States. Interior production of coffee and cocoa is also limited.

“We encourage President Trump and his sales advisers to refine their approach and exempt ingredients and key contributions to protect manufacturing jobs and prevent unnecessary inflation to grocery store,” said Tom Madecki, vice-president of the resilience of the association’s supply chain.

Outside a tractor supply in Castle Rock, south of Denver, two family members on the opposite sides of the political spectrum have debated prices.

Chris Theisen, 62 and republican, was enthusiastic about prices. “I feel a good change, I think it will be difficult, but you are not going to the gymnasium and do not move away and say:” God, I feel good, “he said.

Nayen Shakya, a large nephew of Democrat and Theisen, said that higher prices are already a difficulty. At the restaurant where he works, the menu prices have been increased to take into account higher ingredient costs in recent weeks.

“It is sometimes very easy to say certain things in a vague way with which everyone can agree with who is definitely more complex below the surface,” said Shakya. “The burden of pricing is already going to the consumer.”

Listening to his nephew, Theisen added: “I also understand this side.”

“I don’t have a crystal ball. I hope it works well. “

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The writers of AP Paul Wiseman, Jesse Bedayn, Dee-Ann Durbin and Claire Rush contributed to this report. Rush reported to Portland, Durbin de Detroit and Bedayn from Colorado. Photographer AP Erin Hooley contributed from Chicago.