Indiana families will be hit hard by tariff-related price increases in coming months, according to experts who are alarmed about the possible consequences on consumers.
Michael Hicks, professor of Economics at Ball State University, says the average Hoosier family is going to pay between $2,000 to $2,500 in tariff damages this year.
“As workers are going to be more affected, because a much larger share of Indiana families have someone working in manufacturing or logistics, and those are the two sectors that are going to be really pummeled by tariffs,” he said.
The impact of tariffs will be more painful for working class families.
“Hoosier households are going to be about like the national average,” he said, “but when it comes to jobs and the continued availability of employment, Indiana is going to pay a much higher burden than the average American, just because we're so heavily into manufacturing and logistics.”
Tariffs are taxes on imports and President Trump’s current tariffs rate range from 10% to 55%, depending on the country. The increase the price of goods. But they are not like inflation-related price rises.
“If there's a 10% inflation increase over time, typically a few months, we see wages rise by 10% and so that's not going to happen,” he added. “So, whatever tariff price increases we experience, which is going to be substantial, will not be offset by higher wages to compensate for that.”
