The rising cost of consumer goods: How Trump’s tariffs are impacting Americans
Shreeaa Rathi | TIMESOFINDIA.COM | Feb 04, 2025, 23:40 IST
( Image credit : TOIGLOBAL )
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.
How Tariffs Affect Consumers
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?
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?
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
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.