Americans Could Face Higher Costs for Everyday Essentials Due to Trump’s New Tariffs

The proposed tariffs by US President Donald Trump could lead to increased prices on essential items commonly purchased by Americans, affecting everything from clothing to coffee.

After declaring a national economic emergency on Wednesday, Trump introduced new tariffs on billions of dollars worth of goods starting at 10%, with rates potentially reaching 50% for nations labeled as “worst offenders.” These tariffs will start to take effect on April 5.

Economists have cautioned that these new tariffs, along with retaliatory duties from other countries, could escalate prices for consumers across the board. Federal Reserve Chairman Jerome Powell has indicated that inflation is expected to rise as a result.

As the cost of tariffs may be transferred to consumers, companies importing goods might either increase prices or limit the number of products available in the market.

Here are six everyday items that American consumers may see price increases on.

Countries known for their clothing production, such as Vietnam, China, and Bangladesh, are set to face the highest tariffs. These countries rank among the top five apparel importers to the US, with tariffs expected to range from 34% to 46% on their products.

Major US retailers like Target and Walmart, known for affordable clothing, may experience increased costs along with popular apparel brands.

According to an analysis by Prof Sheng Lu at the University of Delaware’s Fashion & Apparel Studies department, Gap sources approximately 21% of its clothing from Vietnam, while another 37% comes from India’s, Indonesia’s, and Bangladesh’s manufacturers.

H&M, recognized for its budget-friendly fashion, primarily manufactures its clothing in China and Bangladesh.

The United States Fashion Industry Association has warned that these tariffs may impose an “unfair burden” on American households, specifically affecting those with lower incomes.

Vietnam is reportedly open to negotiating with the administration to avoid these tariffs, whereas China has already retaliated with its own steep levies.

The majority of coffee consumed in the US is imported, indicating that both home-brewed and café servings could soon come at a higher cost for Americans.

The US primarily imports coffee from Brazil and Colombia, both of which are affected by the 10% tariffs. Vietnam also plays a significant role in exporting specific coffee varieties.

Walter Haas, owner of San Francisco coffee roastery Graffeo, mentioned to the Washington Post that the impact of tariffs would be felt “immediately – literally the next day.”

If tariffs remain, these cost hikes will be “permanently baked into consumer prices,” he added.

Other imported foods commonly found in US kitchens may experience similar price increases, especially those sourced from European Union nations, which will incur a 20% tariff. This could mean higher prices for staple goods like olive oil, primarily imported from Italy, Spain, and Greece.

Footwear, particularly popular sneakers like Nike Air Force 1s and Adidas Sambas, could soon see price increases. Both brands heavily rely on Asian manufacturing, with nearly half of Nike’s footwear and 39% of Adidas’ produced in Vietnam.

In 2024, the US imported over $27 billion worth of footwear, mainly from China and Vietnam, which faced around $3 billion in tariffs, as per data from Prof Lu.

This tariff amount could nearly triple.

UBS analysts informed Reuters that retailers may have no choice but to implement price hikes of 10% to 12% to counteract the tariffs imposed on Vietnamese manufacturers.

France stands as one of the leading sources of wine for the US, and the wine industry there is anxious about how the 20% EU tariffs will impact their business.

The Bourgogne Wine Board representing French producers stated that US tariffs will deliver “a serious blow” to both exporters and American consumers.

Laurent Delaunay, president of the Bourgogne Wine Board, warned that these additional tariffs might push their wines past a psychological price threshold that could deter buyers.

Expect price hikes in restaurants, especially for imported beers (like Guinness) and cocktails made with foreign spirits (like a negroni). Separately, the expansion of aluminium tariffs by Trump to include all canned beer could also inflate prices for those drinking at home.

UBS analysts have stated to Reuters that larger alcohol retailers might need to raise prices by up to 5% to cover the tariffs, should they choose not to absorb these costs.

Big-ticket electronics like cell phones, TVs, and video game consoles could become even more expensive due to the latest US tariffs.

China, Taiwan, and South Korea are prominent exporters of electronics to the US.

Most iPhones are manufactured in China, with some production taking place in India, which is also facing a significant 26% tariff as a “worst offender.” Additionally, Samsung has substantial manufacturing operations in Vietnam.

It remains uncertain how these major tech companies will react to the new tariffs. However, Nintendo has decided to postpone pre-orders for its Switch 2 console, seeking to assess the possible effects of the tariffs.

Shopping for fast-fashion items through Chinese online platforms such as Temu or Shein may soon see increased prices for American consumers.

In addition to the country-level tariffs, Trump has also terminated an exemption that previously allowed small-dollar shipments from China to enter the US without charges.

This exemption, known as the “de minimis” loophole, permitted packages valued under $800 (£620) to be duty-free upon arrival in the US, a key factor in helping Temu and Shein maintain low prices.

With the new executive order, these companies might face taxes on the clothing they frequently send directly to customers for the first time.

The extent to which pricing for these items will be affected by closing the loophole is not fully known; however, the White House indicates that small shipments sent through the international postal network may incur a tax of “either 30% of their value, or $25 per item.”

Starting June 1, this tax is projected to rise to $50 per item, as per announcements from the White House.