Tariffs and the Conflict in Iran Will Burden Every US Family by $1,500 in 2026 — A Detailed Analysis - video Dailymotion

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In 2026, American families will encounter a double economic blow, as tariff measures will result in an average increase of $1,500 in the prices of goods — with the US effective tariff rate reaching 11 percent, the highest level seen since 1943. Meanwhile, the ongoing conflict in Iran is anticipated to elevate oil prices to $96 per barrel, further intensifying inflationary pressures across all sectors of the economy. Economists from Yale Budget Lab and Goldman Sachs caution that this combined effect could lead to one of the most significant income shocks for the middle class in contemporary history, with the costs of groceries, fuel, and imported products all rising concurrently. The Federal Reserve is faced with a challenging decision regarding monetary policy, needing to choose between curbing inflation and fostering economic growth.

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00:00American households are being squeezed from two directions simultaneously.

00:04And economists say the combined damage will amount to one of the largest middle-class income shocks in modern history.

00:11On one side, tariffs.

00:13The Trump administration's tariff policies have pushed the U.S. average effective tariff rate to 11%, the highest since 1943.

00:21Yale Budget Lab Analysis estimates this will cost the average American household $1,500 this year in higher prices on

00:30goods.

00:30On the other side, the Iran war.

00:33The conflict has driven oil to $96 a barrel, raised jet fuel costs, pushed up prices on anything that moves

00:41by truck, ship, or plane,

00:43and added inflationary pressure across the entire U.S. economy.

00:47The Federal Reserve is watching this collision carefully.

00:50Cut rates too aggressively to support growth, and inflation stays elevated.

00:56Keep rates high to fight inflation, and growth slows.

00:59For ordinary American families, neither path is pain-free.

01:03Groceries are more expensive.

01:05Fuel is more expensive.

01:07Imported goods are more expensive.

01:09And economists say the relief that was promised from tax cuts and economic growth has been absorbed and then some

01:16by these twin shocks.

01:17Middle-class Americans are not talking about prosperity right now.

01:21They are talking about how to get to the end of the month.

01:24They are talking about

01:24The Federal Reserve is a great deal.

Tariffs and the Conflict in Iran Will Burden Every US Family by $1,500 in 2026 — A Detailed Analysis

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