'I can't keep up' - Trump's changing tariffs leave shoppers feeling paralysed

April 12, 2025

US consumers are responding to the threat of tariff-induced price increases following President Trump's announcement of sweeping import taxes, including a 10% tax on most imports and a 145% duty on Chinese goods. Some Americans like Richard Medina are rushing to make purchases before prices rise, while others feel uncertain about how to respond, especially as Trump has already modified his plans several times, scaling back duties on EU imports and exempting smartphones from tariffs. Economists predict significant price increases in the coming months, with Yale's Budget Lab estimating that the typical US family faces approximately $4,700 in additional costs due to the new taxes, potentially leading to retail shortages of certain Chinese-dominated products and ultimately reduced consumer spending that could harm the US economy.

Who is affected

US households and consumers facing potential price increases and shortages
Retailers including Target, Walmart, and Amazon, which have experienced increased consumer visits and purchases
Fixed-income individuals like 74-year-old pensioner Cristina Montoya
Parents purchasing essential items like baby formula and clothing
Businesses that have introduced tariff surcharges or canceled shipments from China
The broader US economy, which is heavily dependent on consumer spending

What action is being taken

Consumers are accelerating purchases of items expected to rise in price, with some stockpiling goods like canned food and frozen fruit
Major retailers are experiencing increased store visits and purchases in response to tariff concerns
Businesses are implementing tariff surcharges to offset the new import taxes
Some companies are abruptly canceling shipments from China rather than risk absorbing duty costs
President Trump is continuously modifying his tariff policies, including exempting smartphones and pausing duties on some European goods

Why it matters

The new tariffs have pushed the average effective US import tariff rate to the highest level in more than a century
Yale's Budget Lab forecasts significant price increases: clothing prices could rise by more than 60%, pharmaceutical products by 12%, and food by 2.6%
The typical US family faces approximately $4,700 in additional costs if purchasing patterns remain unchanged
The tariffs could cause near-term shortages of items where China dominates supply, such as baby carriages, coloring books, and umbrellas
Economic forecasts have turned pessimistic, with Nationwide predicting just 0.5% economic growth this year and JP Morgan forecasting a recession

What’s next

No explicit next steps stated in the article.

Read full article from source: BBC