As a tax on imported goods, tariffs imposed by the U.S. may be intended to place a burden on other countries. But all too often, according to economists, American consumers will end up paying a price, too.
How does that figure? Well, "tariffs are paid by the domestic companies importing foreign goods and materials, and those companies tend to raise consumer prices to cover higher import costs," said NerdWallet. As an example of how much those incremental increases can add up, "an analysis by the nonpartisan Tax Foundation found that if the tariffs Trump threatened in recent days are imposed, it would amount to an average tax increase of more than $800 per U.S. household in 2025," said NPR.
While the future of President Trump's tariff plan remains uncertain, here is a forecast of some of the goods those added costs may get tacked onto.
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Groceries
If Trump decides to move forward with the currently paused tariffs on Canada and Mexico, Americans could see the consequences at the supermarket. "Fresh produce, much of which is imported from Mexico, is one of the first categories where shoppers might notice an uptick in prices," said The New York Times. From Canada, the U.S. "imports a range of agricultural products from Canada, including meat and grains," which could push up prices there. Alcohol would likely not be exempt, either — "especially beer and tequila," said the Times.
Cars and gas
Automobiles, as well as their "parts and accessories," are a major import for the U.S., which means that depending on how tariffs pan out, in addition to new car purchases, "imported goods needed to maintain or repair vehicles also would get more expensive," said NerdWallet.
If tariffs on Canada end up happening, gas prices could also go up for consumers at the pump, with one expert projecting a "hike of 10 or 20 cents a gallon if there's a 10% tariff on Canadian crude," said NPR.
Electronics
"Consumer electronics often rely on components sourced from numerous countries, so tariffs on specific parts can raise overall retail prices," said Jodonnis Rodriguez, an associate professor of finance at Eastern Michigan University, to Fortune. In particular, "large appliances and household goods that depend on steel and aluminum could also see sharper price increases if the raw materials become more expensive," said Rodriguez.
Consumer electronic prices are also at risk: for everything "from cellphones and computers to video games, shoppers could see prices start to rise within a couple of months," said the Times.
Clothing and shoes
Consumers are also "likely to see higher prices on clothing, with about 30% of U.S. apparel coming from China," said NBC News. Depending on the brand, Trump's tariffs on China could cause clothing prices to rise as much as 2%," said the outlet, citing an estimate by Bloomberg Intelligence.
Plus, "with more than half of footwear sold in the United States coming from China," steeper shoe prices are likely as well, said NBC News.
Pharmaceuticals
Tariffs have the potential to "drive up drug prices," as "about half of generic drugs taken in the United States are made entirely overseas," said NBC News. Further, "China is increasingly playing a role in making those ingredients," according to data from United States Pharmacopeia, a "nonprofit group that focuses on the safety of the drug supply chain."
