What US consumers can expect from new tariffs on imported goods
[August 08, 2025] By
ANNE D'INNOCENZIO and DEE-ANN DURBIN
American businesses and consumers soon will have a better idea of how
President Donald Trump's foreign trade agenda might affect them now that
the United States has imposed higher tariffs on products from dozens of
countries.
It’s been nearly 100 years since the nation had an overall import tax
rate as high as the one set Thursday. But the individual impact on
business costs and consumer prices could vary as much as the tariffs
applied to goods of nearly 70 U.S. trading partners, from complicated
economies like the European Union to the small African nation of
Lesotho.
Exports from a majority of them are getting taxed at 15%. For a handful
of countries in Asia, the rate is 19%. Products from the rest are
subject to taxes of 20% to 50%. Meanwhile, a 55% tariff on Chinese-made
goods is scheduled to take effect next week if a U.S.-China trade deal
is not agreed on before then.
Businesses in the U.S. and abroad have been dealing in various ways
since February with Trump's fluctuating tariffs on specific products and
countries. Many automakers appeared to have absorbed the costs for now.
But recent government data indicated that retail prices for groceries,
furniture and appliances started creeping up in June.
Because tariffs are a tax on imports, economists have expected U.S.
consumers to foot at least part of the bill eventually.
The country-specific round enforced Thursday, together with the
president's earlier tariffs on specific sectors such as automobiles and
steel, will increase prices 1.8% in the short term, the Budget Lab at
Yale estimated. That’s the equivalent of a $2,400 loss of income per
U.S. household, according to the non-partisan policy research center

The projections were based on an analysis of duties implemented this
year through Wednesday, as well as a doubling of the levy on items made
in India that Trump said would be implemented near the end of August.
"Retailers have been able to hold the line on pricing so far, but the
new increased tariffs will significantly raise costs for U.S. retailers,
manufacturers and consumers,” Jon Gold, vice president of supply chain
and customs policy at the National Retail Federation trade group, said
in an emailed statement to The Associated Press.
Here’s what to know about the tariffs and where U.S. consumers are most
likely to notice effects:
How we got here
Trump unveiled sweeping import taxes on goods coming into the U.S. from
66 countries, the European Union, Taiwan and the Falkland Islands in
April. He said the “reciprocal” tariffs were meant to boost domestic
manufacturing and restore fairness to global trade.
The president paused the country-specific tariffs a week later but
applied a 10% tax to most imports. In early July, he began notifying
countries that their exports would be subject to higher tariffs on Aug.
1 unless they reached trade deals. A week ago, he pushed the start date
to Thursday.
In the meantime, Trump announced a 35% tariff on imports from Canada,
but delayed action on Mexico while negotiations continued. However, a
free trade agreement reached with Mexico and Canada during Trump's first
term shields most of those countries' products from punishing duties.
The president also ordered a 50% tariff on goods from Brazil. This week,
he signed an executive order to take India's tariff rate from 25% to 50%
for its purchases of Russian oil. The timing gives India and Russia a
chance to negotiate with the Trump administration.
Other duties not specific to countries remain in place, such as a 50%
tariff on imported aluminum and steel announced in June. Trump also
threatened 100% tariffs on computer chips that aren’t made in the U.S.
The administration has said tariffs are still coming on imported
pharmaceutical drugs.
Tariffs are already impacting prices
The U.S. Commerce Department reported on July 31 that prices rose 2.6%
in June, up from an annual pace of 2.4% in May. Earlier in July, the
government reported that its primary inflation measure, the Consumer
Price Index, also ticked higher in June as the cost of furniture, toys
and other frequently imported items increased.
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Clearance home appliances are displayed at a retail store in Vernon
Hills, Ill., Thursday, Aug. 7, 2025. (AP Photo/Nam Y. Huh)
 Shoppers should be prepared to pay
more for clothes and shoes because the combined tariffs
“disproportionately affect clothing and textiles,” according to the
Budget Lab at Yale. It estimates that shoe prices will go up 39%
temporarily and stay 19% above where they are now. For apparel, the
Budget Lab put the comparable figures at 37% and 18%.
Overall, Americans face an average tax of 18.6% for imported
products, the highest rate since 1933, the research center said.
Food and drink prices will climb
The tariffs will almost certainly result in higher food prices,
according to an analysis by the nonpartisan Tax Foundation. The U.S.
simply doesn't make enough of some products, like bananas or coffee,
to satisfy demand. Fish, beer and liquor are also likely to get more
expensive, the foundation said.
The U.S. Wine Trade Alliance and other alcohol industry trade groups
sent a letter to Trump that warned a 15% tariff on European wines
and spirits could result in more than 25,000 American job losses and
cost the industry nearly $2 billion in lost sales.
“Mr. President, we need toasts, not tariffs, as we head into the
most important season for our industry,” read the letter dated
Wednesday.
Wine distributors and retailers avoided price increases before now
by accelerating shipments from France and other EU countries earlier
in the year. But with the EU's tariff rate raised to 15% on
Thursday, customers may see European wines costing 30% more in
September, U.S. Wine Trade Alliance President Ben Aneff said.
Car prices hold steady — so far
Some automakers already raised prices to counteract tariffs. Luxury
sports car maker Ferrari said last week it was waiting for more
details of Trump's trade deal with the EU before scaling back a 10%
surcharge it put on most vehicles in the U.S.
For the most part, automakers waited for details instead of passing
on tariff costs to consumers. But that could change.
General Motors said on July 22 that the impact of the tariffs could
get more pronounced in the third quarter of the year. GM has
estimated the tariffs will cost it $4 billion to $5 billion this
year.
Toyota reported Thursday a 37% drop in profits in the April-June
quarter, cutting its full-year earnings forecasts largely because of
Trump’s tariffs.

Still a clouded picture
Even with so many new tariffs kicking in, the tariff situation
remains fluid. Trump’s use of an emergency powers law to implement
tariffs is being challenged in the courts. The case is expected to
wind up before the U.S. Supreme Court.
Moreover, the tariffs on goods from China haven't been finalized.
Consumers may start seeing more effects when the administration ends
a tax exemption for small parcels sent from other countries.
Trump last week signed an order to suspend the “de minimis"
exemption that has allowed shipments valued at $800 or less to enter
the U.S. duty-free. International e-commerce companies have widely
used the rule to avoid paying customs charges.
Trump withdrew the exemption in early April for goods shipped from
China and Hong Kong tariff-free. It is now set to be eliminated for
low-value packages from every country on Aug. 29.
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AP reporter Colleen Barry in Milan contributed to this report.
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