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Tariffs are taxes on imported goods. This means businesses and consumers may end up paying more for certain products, like electronics, furniture, and food. According to economist Wendong Zhang from Cornell University, even though the final tariffs are lower than what Trump first announced, prices will still rise, but not as much as feared. Some companies are absorbing the costs, while others are raising their prices. For example, Ray-Ban’s parent company increased prices in the US because of tariffs on goods made in Mexico, Thailand, China, and Italy.
Trump announced a wide range of tariffs back in April. By saying that they would help US manufacturing. He gave other countries a chance to make trade deals before the tariffs began. Some deals were made, and tariffs were adjusted or delayed.
Trump also introduced specific taxes:
35% on imports from Canada
25% on goods from India
50% on products from Brazil
15–20% on items from the EU, Vietnam, the Philippines, Japan, and South Korea.
Prices in the US are already going up. In June, prices rose 2.6%, more than the Federal Reserve's goal of 2%. Items like appliances, electronics, kitchenware, and home goods are more expensive now, especially those made with steel and aluminum.
Yes, some American industries could benefit.
Farmers might gain from deals where countries like Vietnam agreed to buy US corn, wheat, and soybeans.
Energy and defense companies could also see more sales under new trade agreements.
But economists warn these benefits may be short-term, and countries could start buying from other suppliers in the long run.
Expect to pay more for bananas, coffee, fish, beer, and liquor. The US doesn’t produce enough of these, so imports are essential. Companies like Conagra Brands say tariffs on aluminum and steel will raise their costs by $200 million yearly, leading to price increases. Wine prices are also expected to rise 20–30% by September due to new tariffs and a weaker US dollar.
Almost all clothing and shoes in the US are imported, mostly from Asia. Tariffs are already pushing prices up. Brands like Ralph Lauren and Lululemon have announced price hikes. Others may cut products or reduce sales promotions to manage costs. Back-to-school shoes could be 5–10% more expensive, according to industry experts.
So far, car prices have stayed stable, only rising slightly in June. But companies like General Motors warn that costs could rise soon. Some luxury brands like Ferrari already added extra fees earlier in the year, and more carmakers may follow.
Tariffs are starting to impact prices across many industries. Some businesses are passing the extra costs on to customers, while others are waiting to see how trade talks develop. Consumers should be prepared for higher prices on everyday goods in the coming months.
