The Josh Lafazan Show on YouTube - Episode 113

Trump’s Tariffs Are Making Prices Soar — Here's the Truth Behind the Numbers | The Josh Lafazan Show

The Josh Lafazan Show on YouTube - Episode 113

Welcome to The Josh Lafazan Show, where we break down the biggest political headlines and what they actually mean for your life. Today, we’re diving deep into a topic that’s hitting your wallet hard: President Trump’s tariffs — and how they’re driving up prices across the board.

Trump promised voters in 2024 that if he returned to office, prices would fall starting on “Day One.” But it’s now Day 115 of his second term — and not only are prices not falling, they’re climbing fast. Why? Because of the very policy Trump has touted as a cornerstone of his economic agenda: his blanket tariffs on imports.

In today’s episode, we cover:
🔍 Why Trump’s tariffs are functioning as a hidden tax on American consumers
📈 How Walmart, the world’s largest retailer, is raising prices and warning of more hikes
📉 What Federal Reserve Chair Jerome Powell says about the real cost of Trump’s tariff plan
💵 Why everyday Americans — especially the poor and working class — are bearing the brunt of the damage

Let’s cut through the noise. You’ve likely seen influencers on social media saying inflation is down, or that gas and groceries are cheaper. That’s misinformation. Here’s what the data actually says:

🛒 Food Prices:

• Trump promised to cut grocery costs. But egg prices alone are up more than $1 from last year.
  
   
• The USDA reports a 2.4% annual increase in food-at-home prices (grocery store purchases), and a 3.8% increase in food-away-from-home (restaurant purchases).
  
   
• These increases are directly tied to Trump’s tariffs, which are driving up input costs across agriculture and distribution.
  
   

⛽ Gas Prices:

• Yes, gas is cheaper than it was a year ago — but Presidents don’t control gas prices.
  
   
• The National Association of Convenience Stores (NACS) explains that gas prices are determined by oil markets, not executive orders or tariff policies. So while Trump takes credit, the reality is far more complicated.
  
   

📊 Tariff Data from Yale:

• Trump’s tariffs have resulted in the highest effective tariff rate (17.8%) since 1934.
  
   
• Even after adjustments, tariffs will remain at 16.4% — the highest since 1937.
  
   
• These tariffs amount to a $2,800 annual cost per household, driven by increased consumer prices.
  
   

💼 Economic Growth & Jobs:

• Trump’s tariffs are expected to reduce U.S. GDP growth by 0.7 percentage points in 2025.
  
   
• Long-term, the economy could be 0.4% smaller per year, costing $110 billion annually.
  
   
• These policies are already slowing hiring, reducing investment, and leading to job losses.
  
   

🏬 Even Walmart Can’t Absorb the Cost:

• Walmart — which operates on razor-thin 3% profit margins — is now raising prices due to tariffs.
  
   
• This isn’t a story about corporate greed. In fact, Walmart’s costs are up so significantly, they literally can’t absorb the tariffs without incurring massive losses — something public companies are obligated to avoid.
  
   

💸 Who Pays the Price? You Do:
Whether you shop at Walmart, Target, or a local small business, the cost of tariffs gets passed on to you — the consumer. From everyday goods to electronics, clothing, and food, Trump’s tariffs are quietly increasing the price tag of nearly everything you buy.

📉 Impact on Income Equality:
According to a study by the Wharton School at the University of Pennsylvania:

• The working class loses an average of $700/year in income.
  
   
• Low-income households lose about $1,000/year.
  
   
• Meanwhile, the top 0.1% gains $