President Trump’s new tariffs officially kicked in at midnight Thursday, setting off a major shift in U.S. trade policy. These tariffs — which can go as high as 50% — target dozens of countries and could soon hit consumers where it hurts most: their wallets.
What’s Happening?
Trump announced the tariffs back in April during what he called “Liberation Day.” After months of back-and-forth and global market jitters, the tariffs are now in full effect.
Just before midnight, Trump posted on Truth Social:
“BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!”
While the administration says the tariffs will bring in huge revenue, companies warn they’ll be forced to raise prices to deal with increased costs. That means everyday goods could soon get more expensive.
When Will You Feel It?
The average American family could pay about $2,400 more this year due to these new tariffs, according to the Yale Budget Lab. (The White House disputes their numbers.)
Even the Federal Reserve is unsure of the full impact. Fed Chair Jerome Powell recently said we’re still figuring out “how exactly these tariffs will affect the economy.”
But signs are already showing. According to consumer price data from June, inflation is creeping up — and tariffs are part of the reason.
What’s Likely to Get More Expensive?
Here are some of the brands and products that may soon cost more:
- Adidas: May raise U.S. prices by late 2025
- Procter & Gamble: Prices going up on about 25% of its products
- Walmart, Ralph Lauren, Mattel: Also hinting at increases
And it’s not just brand-name goods — expect higher prices on:
- Coffee: Tariffs on Brazilian beans could raise prices 6–8%
- Swiss chocolate and coffee: Facing a 39% tariff
- Fresh produce: Items like tomatoes, mangoes, and avocados may spike
- Shoes and clothing: Most of which are imported
- Car insurance: Could rise as car part prices jump due to import costs
Even back-to-school shopping was impacted. Many retailers rushed to stock up early, but that buffer might run out by late summer or fall.
Why the Sudden Shift?
The administration adjusted tariff rates after scrapping an old calculation method that had led to sky-high numbers. While the updated approach is more practical, rates are still the highest they’ve been in decades.
And the tariffs are already affecting global trade and showing up in inflation data — especially for everyday goods like furniture, clothes, and groceries.
The Bottom Line
Tariffs don’t raise prices overnight, but they ripple through the economy over time. You might not feel the pinch immediately — but by late 2025, that could change. From coffee to clothes, costs are expected to climb, and we’re just beginning to see the effects.
Want to Know More?
Trump has also proposed a 100% tariff on semiconductors, with some exceptions — a move that could further shake up supply chains.
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