Six things that may cost Americans more after Trump's tariffs

August 1, 2025

President Trump's tariff policies are creating significant economic ripple effects across global trade partnerships. While countries like the UK, Japan, and EU have negotiated reduced tariff rates from the initially threatened 30%, others like Canada now face 35% tariffs after the August 1 deadline. Though Trump claims these taxes will generate revenue and boost American manufacturing, early indicators suggest consumer prices are rising, with economists warning the full impact has yet to materialize.

Who is affected

American consumers facing higher prices on imported goods
Major US retailers like Target, Walmart, and brands like Levi Strauss and Nike
Trading partners facing varying tariff rates (Canada, China, Vietnam, Bangladesh, EU countries)
US automobile industry and its supply chains
Home builders and housing market stakeholders
Coffee, alcohol, and food importers and their customers
Oil refineries designed for Canadian "heavier" crude oil

What action is being taken

Trading partners are negotiating tariff reductions (EU negotiated from 30% to 15%)
Companies are raising prices on affected products (apparel prices jumped 0.4% from May to June)
Retailers and manufacturers are absorbing some tariff costs to minimize consumer price increases
The European Union is increasing energy purchases from the US as part of its tariff agreement
The US is actively collecting varying tariff rates on different products from different countries

Why it matters

Yale's Budget Lab predicts clothing prices could surge 37% in the short run
Food prices are projected to rise 3.4%, with fresh produce seeing sharp initial increases
Building materials tariffs could increase home prices and potentially reduce new construction
Vehicle tariffs may disadvantage US-branded cars assembled outside the country
The US refineries' dependence on Canadian "heavier" crude oil means potential fuel price increases if Canada retaliates
The measures impact affordability of everyday consumer goods across multiple categories

What's next

No explicit next steps stated in the article

Read full article from source: BBC