The New York Times
Trump’s Tariffs Could Raise Prices on Many Consumer Goods
Thu, 07 Aug 2025 19:03:48 GMT
With the latest round of President Trump’s tariffs taking effect on Thursday, many American consumers may soon notice higher prices on everything from sneakers to bananas, as well as the cost of their next car.
The sweeping tariffs target nearly all U.S. trading partners and push the average tax on imports to more than 18 percent, the highest since 1934 and a steep jump from 2.4 percent in January, according to Yale’s Budget Lab. While the taxes are levied on importers, exporters and retailers, many economists warn that consumers will bear much of the cost.
Some of the biggest price increases are expected in everyday categories such as clothing, food and cars, according to projections from the Budget Lab. In the short term, shoe prices are forecast to soar by 40 percent, while apparel costs could rise by 38 percent.
Fresh produce prices are expected to increase 7 percent. The average price of a new car could jump by $5,800 in the short run. These price increases could add pressure to household budgets already straining to keep up with inflation.
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