The rising cost of consumer goods: How Trump’s tariffs are impacting Americans

Shreeaa Rathi | TIMESOFINDIA.COM | Feb 04, 2025, 23:40 IST
How will Donald Trump's tariffs affect U.S consumers? Will cars, gasoline, and medicines cost more? Here's a breakdown
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President Trump's new 10% tariff on Chinese goods could raise prices for American consumers. The tariffs affect consumer electronics, toys, and footwear among other items. Prices might not rise immediately but can be expected to increase as current stocks deplete. This adds complexity to an already uncertain economic environment in the U.S.


If you're in the market for a new computer, television, or smartphone, now might be the time to make a purchase. On Tuesday, President Donald Trump imposed a new 10% across-the-board tariff on Chinese goods, a move that could soon drive up prices for American consumers.

How Tariffs Affect Consumers

Tariffs are essentially taxes placed on imported goods, and while they are meant to target foreign producers, the reality is that the costs are shouldered by U.S. importers. These costs then trickle down to retailers and, ultimately, consumers. Economists have long warned that tariffs can hurt American businesses and households, many of which are still grappling with the effects of inflation in recent years.

Unlike Mexico and Canada, which are largely exempt from tariffs due to the U.S.-Mexico-Canada Agreement (USMCA), China has long been a primary target of U.S. trade restrictions. Prior to Tuesday’s announcement, Chinese goods already faced a range of tariffs, including a 100% tariff on electric vehicles and a 25% tariff on steel and aluminum products. However, certain items had previously been exempt—most notably, consumer electronics. That exemption is now gone.

Which Products Will Become More Expensive?

Consumer electronics rank among the top imports from China. According to federal trade data, the United States imported approximately $401 billion worth of goods from China last year. Communications equipment, which includes smartphones, televisions, and even satellites, accounted for $47 billion of that total. Meanwhile, computer equipment—including laptops, tablets, and semiconductor chips—made up $39 billion.

Other products that could see price hikes include toys, jewelry, silverware, and sporting equipment. These fall under the category of “miscellaneous manufactured commodities,” which represented $37 billion of U.S. imports from China in 2024. Additionally, footwear is expected to become more expensive, as roughly 99% of all shoes and sneakers sold in the U.S. are imported, with China and Vietnam being major suppliers.

“If you want to make a list of ways to drive up prices, this would be at the top of the list. It’s totally counterproductive,” said Matt Priest, president and CEO of the Footwear Distributors and Retailers of America (FDRA), which represents major brands such as Nike, DSW, and Under Armour. “We pay the tariffs. The American consumers pay the tariffs. These are not external revenue sources. They are internal.”

When Will Prices Start to Rise?

The impact of the new tariffs won’t be immediate. Many goods currently in U.S. warehouses were imported before the tariff hike, meaning retailers can temporarily avoid passing the costs onto consumers. However, as these inventories are depleted and new shipments arrive, prices are likely to climb.

Some retailers may be able to absorb the additional costs, especially if they stockpiled inventory in anticipation of the tariffs. Others, however, may have no choice but to pass these costs onto consumers.

A Complicated Economic Landscape

The latest round of tariffs adds another layer of complexity to an already uncertain economic environment. While tariffs are often used as a tool to push for fairer trade agreements, they also pose risks to businesses and consumers alike. As prices rise, Americans may need to adjust their budgets and make purchasing decisions with these new economic realities in mind.

With additional trade negotiations and potential retaliatory measures from China on the horizon, the full impact of these tariffs remains to be seen. However, one thing is clear: the cost of everyday goods is likely to rise, affecting millions of American consumers in the months ahead.

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