An economist states that if Trump imposes tariffs, consumers will bear the cost, regardless of the outcome.

• When he assumes the presidency, Donald Trump intends to impose tariffs on U.S. trading partners, including Mexico, Canada, and China.
• Economists and other experts expect tariffs to raise costs for consumers.
• Some believe that the tariffs are a bargaining tool and that Trump will not implement them.

If President-elect Donald Trump implements his plan to impose import tariffs, U.S. consumers may experience price hikes, according to experts who spoke at the Financial Advisor Summit on Tuesday.

Erica York, senior economist at the Tax Foundation, stated that regardless of the choice, consumers will incur a cost.

Imported goods are subject to a tax known as a tariff, which is paid by U.S. companies that import them.

Experts suggested that businesses may increase prices for consumers in stores to cover the expenses of tariffs.

York stated that tariffs could decrease business profits, which may lower returns for shareholders and potentially lead businesses to reduce wages or employment opportunities for workers.

"It is such a company-specific decision," she said.

No 'guarantee' that prices won't rise

During an NBC News interview on Dec. 8, Trump stated that he would adhere to his campaign pledge to impose tariffs, but he couldn't assure American households wouldn't experience higher costs due to these tariffs.

"I can't assure anything," Trump stated. "I can't assure the future."

During his first term, Trump imposed tariffs on various goods such as washing machines, solar panels, steel, aluminum, and many Chinese products. The Biden administration maintained most of these tariffs.

Trump has called for a more sweeping tariff regime during his second term.

During his campaign, he proposed imposing tariffs of up to 20% on all trade partners, with a minimum of 60% on Chinese goods.

An October analysis by the Tax Policy Center indicates that such a policy would increase the average U.S. household's costs by $3,000 in 2025.

The largest financial impact from tariffs would likely be felt by low- and middle-income households who are already living paycheck to paycheck, according to Marianela Collado, CEO and senior wealth advisor at Tobias Financial Advisors.

Trump threatened to impose 25% tariffs on Canada and Mexico last month if they failed to address drug trafficking and migration across the border.

Uncertainty around Trump tariff plan

The implementation of tariffs is uncertain, as there is no clear consensus on which countries and products will be affected.

York said it's unclear if Trump has the authority to unilaterally impose universal tariffs.

Some market experts doubt Trump's commitment to fulfilling his campaign promises.

David Zervos, chief market strategist at Jefferies, stated during the CNBC summit that his tariff policies are likely "starting gambits" meant to "coerce" trading partners during negotiations.

Zervos stated that people are interpreting Trump's words literally, despite knowing that's not how he operates.

However, others were less sure of that outcome.

"Barbara Doran, CEO and chief investment officer of BD8 Capital Partners, said, "I hope they are just using negotiating tactics, but they might not be.""

Republicans on Capitol Hill are considering using tariff revenue to offset the cost of a tax-cut package.

Trump appointed Jamieson Greer as his U.S. trade representative; Greer was previously chief of staff to Trump's former U.S. trade representative, Robert Lighthizer, who was instrumental in implementing Trump's first-term tariffs.

Doran stated that tariffs remain a significant unknown factor.