Americans Will Pay More For Clothes, Food After Trump’s Tariffs

In April, U.S. President Donald Trump announced sweeping new tariffs—extra taxes that importers must pay on goods brought into the country.

Clothing and footwear are among the commodities likely to become more expensive. I Photo: Gap Facebook

Since then, several of the U.S.'s major trading partners, including the UK, Japan, and now the European Union (EU), have negotiated lower headline rates. The EU’s deal cut in half the 30% tariff Trump had threatened, Michael Race, Emma Haslett, and Natalie Sherman reported for BBC News.

But other countries are still facing higher rates. Canada, for example, will see tariffs rise to 35% on August 1 if no deal is reached.

Trump claims the additional tariffs will generate billions in revenue and encourage firms to manufacture in the U.S. to avoid the taxes.

However, there are already signs that the levies are pushing up prices for American consumers. Economists warn that the full impact has yet to be felt.

So what products are likely to become more expensive?

Clothing and Footwear

These are likely to be affected first, as the vast majority of apparel sold in the U.S. is made in countries like Vietnam, China, and Bangladesh.

The U.S. is currently charging at least 30% on goods made in China, and it plans to collect a 19% tax on items from Vietnam and Indonesia starting August 1. Tariffs of up to 35% are planned for goods from Bangladesh.

These measures are putting pressure on major U.S. retailers such as Target and Walmart, where Americans often shop for affordable clothing, as well as big-name brands like Levi Strauss and Nike.

Both companies have said they will raise prices for certain items. After months of decline, apparel prices rose 0.4% from May to June.

According to the Budget Lab at Yale, which monitors the economic impact of government policy, overall clothing prices are expected to surge by a staggering 37% in the short term.

Food

Prices of coffee, olive oil, and other imported food items are also set to rise. Almost all the coffee consumed in the U.S. is imported, meaning higher costs are likely to be passed on to consumers.

Coffee from Brazil is facing a 50% tariff, while Vietnamese coffee may be hit with a 20% levy. With 15% tariffs in place on products from EU nations, staple goods like Italian, Spanish, and Greek olive oil are also expected to become more expensive.

Budget Lab at Yale estimates that overall food prices will increase by 3.4% in the short term, with fresh produce experiencing some of the sharpest initial price hikes.