Tariff Deadline Arrives
Trump’s new reciprocal tariffs are set to begin August 1, after a 90-day delay. The rollout coincides with the start of back-to-school shopping, and could sharply increase prices on imported consumer goods.
Higher Prices for Shoppers
Back-to-school buyers may pay more for clothing, shoes, and computers. Analysts estimate households could see costs rise by $2,400 in 2025 due to tariffs, as trade deals with Japan, Indonesia, the Philippines, and the EU take effect.
How the Tariffs Work
These tariffs—first revealed at Trump’s April “Liberation Day” event—have faced repeated delays, but are now moving forward. Tariff rates are being set individually for each country as negotiations continue.
Major Trade Partners Hit Hard
Key U.S. trade partners, including Canada, will face steep tariff rates, with Canadian imports seeing a 35% tariff. Rates for other nations range from 15% to 50%, with higher tariffs aimed at countries the U.S. has tense relations with.
The Impact on Families
Economist Ernie Tedeschi notes that many back-to-school products are imported from countries with the highest tariffs, such as China, which may mean bigger price hikes for parents and students.
Recent Tariff Deals and Adjustments
On Wednesday, Trump set a new 25% tariff on Indian goods, slightly below April’s proposed 26%. Recent deals lowered the EU’s tariff to 15% in exchange for opening their markets to more U.S. agricultural products, like soybean oil and grains.
Apple Products and Electronics
The effect of tariffs on Apple products is uncertain. Many iPhones are made in India, which could help Apple avoid higher China tariffs. Apple may raise prices in the fall, but could attribute it to new features rather than tariffs.
Tariffs Hit Lower-Income Households
Tariffs are likely to affect low-income families the most. These households spend a greater share of their income on imports, especially from countries facing the highest tariffs.
Food, Cars, and Other Essentials
Food prices are expected to rise by about 3.4%, with fresh produce up nearly 7%. Leather goods, computers, and clothing could also see large short-term price hikes. Car prices could jump over 12%, and imported auto parts will get pricier as well.
What’s Next and the Bigger Picture
Analysts predict Trump’s tariffs could bring in $2.9 trillion over the next decade. As businesses adapt, production may shift to lower-tariff countries or back to the U.S. The new tariffs are rolling out as trade talks with major partners continue.
