How Trump’s Tariffs Could Raise Groceries, Cars & Clothes/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump’s new round of tariffs is expected to increase prices for everyday goods, from food to electronics. Economists warn the levies may also slow economic growth and deepen inequality. Consumers, especially low-income households, are advised to prepare for long-term cost increases.
How Trump’s Tariffs Could Raise Consumer Prices – Quick Looks
- Tariffs are taxes on imports, leading to higher costs for U.S. consumers
- Prices expected to rise on groceries, clothing, electronics, and cars
- Low-income families hit hardest, due to larger spending on essentials
- Tariffs may lead to job losses in vulnerable sectors
- Home prices may rise, with tariffs on building materials increasing construction costs
- Retailers may raise prices soon, especially for perishable and imported goods
- Consumers advised to adjust spending, consider generics, and avoid panic buying
- Experts say price increases may persist, not just a temporary shock
How Trump’s Tariffs Could Raise Groceries, Cars & Clothes
Deep Look
President Donald Trump’s latest round of tariffs is poised to hit American consumers hard, driving up prices across a wide range of goods and increasing pressure on household budgets. From groceries to electronics to new vehicles, the cost of everyday living could soon climb — and not everyone will feel the impact equally.
Tariffs, which are taxes placed on imported goods, raise the cost of foreign products for U.S. companies — and those costs are almost always passed on to consumers. Trump’s new tariffs, which expand levies to cover nearly all major trading partners, are already shaking global markets. Now, experts say the real pain is about to show up at the checkout counter.
“There’s this immediate price increase that’s going to be passed on to consumers,” said Josh Stillwagon, associate professor of economics at Babson College. “It is going to affect everything in the economy.”
Who Will Be Hit Hardest?
While nearly every American consumer will be affected, low-income families will bear the brunt. According to Cornell public policy professor Gustavo Flores-Macías, families with tighter budgets spend a larger portion of their income on basic goods — food, personal care products, and fuel — which are all likely to get more expensive.
“Even relatively small price increases will have disproportionate impacts,” he explained. The regressive nature of tariffs means they hit lower earners harder than wealthier ones, particularly when it comes to high-cost items like imported cars.
“That tax is more severe for people who earn less,” added Dipanjan Chatterjee, VP and analyst at Forrester.
What About Jobs and Wages?
Beyond sticker shock, tariffs could also impact job security. Trump has argued that tariffs will restore American manufacturing. But economists warn that rising business costs and global supply chain disruptions could lead to layoffs, especially in sectors that rely on imports.
“As tariffs start to work their way through the economy, low-income families’ jobs often will be the first to go,” Flores-Macías noted.
Susan Helper, a former White House adviser, added that businesses are hesitant to invest in long-term production without confidence in policy stability. “It takes a few years to profit from a new facility. Right now, there’s too much uncertainty,” she said.
What Products Will Cost More?
The new tariffs are far-reaching and could affect many daily essentials and household goods:
- Groceries: Especially perishable foods like fruits and vegetables, which are imported regularly.
- Electronics: Phones, laptops, and accessories that rely on foreign parts or assembly.
- Clothing and Footwear: A major target of tariffs, with apparel prices predicted to rise by 17%.
- Auto Repairs and New Cars: Imported car parts and vehicles could see price jumps of several thousand dollars.
- Home Building Materials: The National Association of Home Builders estimates a $9,200 increase in the average price of a new home due to tariffs on materials.
According to John Breyault of the National Consumers League, households at the bottom of the income ladder could face annual losses of nearly $1,000 just from the latest April 2 tariffs.
Can You Prepare?
Experts advise some level of preparation — but not panic buying.
“If there are things you buy regularly, it’s not a bad idea to stock up,” said Stillwagon. But don’t hoard goods like during the COVID-19 pandemic, he cautioned, or you’ll cause price spikes and shortages prematurely.
Breyault also recommends making sure you can properly store anything you buy in bulk. “That 20-pound bag of shrimp isn’t worth it if you end up throwing it out in two weeks,” he joked.
Other recommendations include:
- Switch to generics or store-brand products
- Buy secondhand or refurbished electronics and clothing
- Compare unit pricing on grocery shelves to spot hidden price hikes
- Explore at-home alternatives, like growing your own produce
“This isn’t a storm that passes in a few days,” said Chatterjee. “It may last until a new administration changes trade policy.”
Watch for “Shrinkflation”
In the coming months, consumers may notice “shrinkflation” — a tactic where companies reduce product size instead of increasing the price.
“Watch the unit price on packaging,” Breyault advised. “That cereal box might be the same price, but there’s less inside.”
Tariffs on essential goods may only exacerbate this trend, as manufacturers attempt to manage costs without driving away price-sensitive shoppers.
Bottom Line
Trump’s tariffs are designed to shield American industry from foreign competition and raise federal revenue, but economists agree they come at a high cost to the average consumer. From the grocery aisle to the car dealership, most Americans will feel the pinch. And for those already living paycheck to paycheck, that pinch may turn into a lasting squeeze.
With inflationary pressures expected to persist — and uncertainty about whether the tariffs will remain in place — now is the time for households to reassess spending, look for savings, and prepare for a more expensive year ahead.
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