In April, U.S. President Donald Trump unveiled a new wave of tariffs, imposing additional import duties on foreign goods in a move he says is designed to strengthen domestic manufacturing and generate revenue.
Since the announcement, countries such as Japan, the United Kingdom, and the European Union have managed to negotiate reductions on the initially proposed tariffs. For instance, the EU succeeded in cutting a proposed 30% duty in half. However, some nations, like Canada, are still facing steep hikes—tariffs on Canadian goods are set to increase to 35% by August 1 unless an agreement is reached.
Trump maintains that the tariffs will boost local production by discouraging imports. However, early signs suggest the policy may lead to higher consumer prices, and experts believe the full economic effects are yet to be felt.
What Goods Are Affected?
Clothing and Footwear
The majority of apparel and footwear sold in the U.S. is sourced from countries like Vietnam, China, and Bangladesh. While some of the harsher tariffs have been reduced, current rates remain high.
-
Chinese-made items face tariffs of at least 30%.
-
Vietnamese and Indonesian goods will incur 19% duties starting August 1.
-
Bangladeshi products could be taxed at 35%.
Retail giants like Target, Walmart, Levi Strauss, and Nike are feeling the pressure and have signaled that price increases are likely. According to Yale University’s Budget Lab, apparel prices could surge by up to 37% in the short term, with a 0.4% monthly rise already recorded between May and June.
Food and Beverages
Imported food products are also being hit:
-
Brazilian coffee faces a 50% tariff, and Vietnamese coffee will be taxed at 20%.
-
Olive oils from Italy, Spain, and Greece now come with a 15% import duty.
-
Tariffs on imports from Mexico, a major source of avocados and tomatoes, remain but include some exemptions.
The Budget Lab forecasts a 3.4% jump in overall food prices, with the sharpest increases in fresh produce.
Alcohol
The U.S. is a major market for European alcohol, with brands like Pernod Ricard and LVMH exporting roughly €9 billion worth of beverages annually.
Though a new trade deal with the EU includes some agricultural products, it’s still unclear if alcohol is covered. In the meantime, Mexican beers such as Modelo and Corona could see price increases due to tariffs on aluminum, which affects canned beverages. As cans account for over 64% of beer sales in the U.S., this could have a notable impact.
Automobiles
Trump introduced a 25% import tax on foreign-made passenger cars and components in March, aiming to protect the U.S. auto industry. While this has been eased to 15% for imports from the EU and Japan, and 10% for UK vehicles, the impact on car prices has so far been muted.
Experts, like Cox Automotive’s Erin Keating, believe car companies are currently absorbing the costs, but warn that future price hikes are likely. Complicating matters, many “American” vehicles are assembled abroad or rely on foreign parts, meaning they are still affected by the tariffs.
Housing Materials
Increased duties on steel, aluminum, and a looming 50% tax on copper, combined with threats to tax lumber, have driven up construction costs.
The National Association of Home Builders (NAHB) warns that these tariffs will translate into more expensive homes and potentially slow down housing development. Much of the raw material—especially lumber, steel, and copper—comes from Canada, currently facing new tariffs of up to 35%.
Energy and Fuel
Though oil and gas imports have mostly been exempt from Trump’s tariffs, a 10% duty has been placed on energy imports from Canada, the U.S.’s largest oil supplier.
Between January and November 2024, over 60% of U.S. oil imports came from Canada. U.S. refineries are tailored to process heavier crude, primarily sourced from Canada and Mexico. Should Canada retaliate or reduce exports, fuel prices in the U.S. could climb, due to refining challenges and supply shifts.
Bottom Line
While the administration touts tariffs as a path to economic self-reliance, the reality for many U.S. consumers may soon be higher costs across a wide range of everyday goods—from clothes and coffee to cars and homes. As the policy continues to evolve, its full impact on both industry and household budgets will become clearer in the months ahead.
ALSO READ : Toyota Sprinter Crash Injures Passengers Near Scene of Last Week’s Tragedy
