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Institutions: American consumers still face very high effective tax rates.
Jin10 data reported on May 13 that even after significant tariff reductions this week, analysis from the Yale Budget Lab indicates that (U.S.) consumers still face an overall average effective tariff of 17.8%, the highest level since 1934. The fluctuation caused by the Trump administration's trade policy announcements makes it difficult to clearly understand the impact of tariffs on the economy, but today's April inflation data at least helps us understand how the initial tariff increases this year have been passed on to consumers.