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Liao Pan\/China News Service\/VCG via Getty Images<\/p>\n
After President Donald Trump said the baseline tariff rate could reach 15%, which economists projected could press prices higher. <\/p>\n
As tariff agreements roll in ahead of an upcoming deadline for trade deals, consumers could soon be facing higher prices than economists had anticipated.<\/p>\n
President Donald Trump said on Wednesday that ‘reciprocal’ tariffs could range from 15% to 50%<\/a> as the U.S. continues negotiating with trading partners<\/a> ahead of an Aug. 1 tariff deadline.\u00a0The 15% tariff baseline exceeds the\u00a010% minimum tariff<\/a>\u00a0imposed on most countries. Economists said the result would be a higher effective tariff rate for U.S. consumers that could eventually push prices higher.<\/p>\n Economists at Goldman Sachs considered the possibility of a 15% tariff floor on Monday. If that were to unfold, Goldman forecasted that tariffs would result in consumers and businesses pulling back on spending and slower economic growth.<\/p>\n “We assume that about 65% of the increase in import costs as a result of the tariffs will ultimately be passed through to U.S. consumers,\u201d said the Goldman Sachs note from a team led by chief economist Jan Hatzius.<\/p>\n Before even taking into account the 15% baseline, the Yale Budget Lab projected that consumers will face an overall average effective tariff rate of 20.2%, the highest level since 1911. That number is likely to rise if 15% is the baseline.<\/p>\n The Yale Budget Lab said tariffs announced through Tuesday will increase prices by 2% in 2025, costing the average household $2,700. Furthermore, the report said some sectors could be hit even harder.<\/p>\n \u201cThe 2025 tariffs disproportionately affect clothing and textiles, with consumers facing 40% higher shoe prices and 36% higher apparel prices in the short run,\u201d the Yale Budget Lab report showed.<\/p>\n