FAIRWAY, KS (KCTV) -- Do you have an extra $800 in your annual budget? Because you could be paying that much more for every day goods and services if the trade war with China continues.

Some analysts estimate the tariffs could end up costing the American economy $62 billion by next year.

That comes out to an extra $500 to $800 dollars per family.

Tariffs are essentially a tax paid by United States companies that import goods from China. The cost is then often passed on to consumers.

The White House’s Chief economic advisor Larry Kudlow doesn’t deny that Americans will pay for the tariffs.

“Yes, to some extent. Yes, I don't disagree with that. Again, both sides will suffer on this,” Kudlow said.

Kudlow expects the Chinese to retaliate in the tariffs in some way this week.

On Friday, President Donald Trump increased tariffs to 25 percent, up from 10 percent, on $200 billion worth of Chinese goods. It’s everything from food, steel, wood and handbags.

The president is also talking about imposing tariffs on remaining Chinese imports worth another $300 billion.

Former Treasury Secretary Henry Paulson says consumers in both countries are hurt by this.

“They clearly want a deal and need a deal, as does the united states. No one wins a trade war,” he said.

Trump is standing by the tariffs Monday morning in a series of tweets speaking directly to China saying they need to make a deal or u-s companies will be forced to import from other countries.

The presidents of both countries are expected to meet next month at the G20 summit in Japan. But more trade talks could happen before then in Beijing.

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