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Six things that could get more expensive for Americans under Trump tariffs Trump tariffs: Six things that could cost Americans more
(4 months later)
Watch: Three things to know about Trump's tariffs announcement In April, US President Donald Trump announced he was introducing sweeping new tariffs, extra taxes that importing firms have to pay if they bring in goods from abroad.
US President Donald Trump has announced and imposed a range of tariffs - or import taxes - on billions of dollars worth of goods coming into the US. Since then some of the US's major trading partners including the UK, Japan and now the European Union have negotiated down the headline tariff rates. The EU's agreement cuts in half the 30% tariff Trump had threatened.
On Wednesday, Trump declared a national economic emergency and announced tariffs on goods from every country of at least 10%. For countries he has deemed the "worst offenders", the rates can go as high as 50%. The 10% tariffs will take effect on 5 April, and the higher ones on 9 April. But other countries are still facing higher rates, including Canada, which will see tariffs rise to 35% on 1 August if no deal is reached.
Canada and Mexico are currently exempted from these charges - but they, along with China, were already facing tariffs on some products. And the Trump administration has now expanded existing steel and aluminium tariffs to include beer and empty cans, which could hit both countries hard. Trump says the extra tariffs will generate billions in revenue and encourage firms to manufacture in the US to avoid the taxes.
On top of that, on Thursday, 25% tariffs on automobiles coming into the US will come into effect. Tariffs on certain car parts are set to start in May or later. But there are already signs that the levies may be pushing up prices for American consumers and economists argue that there is still some way to go before American shoppers feel the full force of the rises.
Economists have warned these levies - and those introduced in response by other countries - could push prices up for American consumers. So what products are likely to become more expensive?
That's because the tax is paid by the domestic company importing the goods, which may choose to pass the cost on to customers, or to reduce imports, meaning fewer products are available. Clothing and footwear
So which things could become more expensive? The vast majority of clothing and footwear sold in the US is made in other countries, including the manufacturing hubs of Vietnam, China and Bangladesh.
Though Trump has backed down from the steepest tariffs he initially threatened, the taxes on imports from those countries are still sharply elevated.
Under current plans, the US is charging at least 30% on goods made in China, with plans to start collecting taxes of 19% on items from countries such as Vietnam and Indonesia on 1 August. Trump has outlined tariffs as high 35% for goods from Bangladesh.
The measures are putting pressure on major US department stores like Target and Walmart, where Americans often turn for affordable clothing, as well as big-name apparel brands, such as Levi Strauss and Nike, which have said they will raise prices for certain items.
After months of declines, apparel prices jumped 0.4% from May to June. Overall, the Budget Lab at Yale, which monitors the impact of government policy on the economy, expects clothing prices overall to surge a shocking 37% in the short run.
Coffee, olive oil and other food
Almost all of the coffee consumed in the US comes from outside the country, meaning it could soon become a bigger burden on Americans' wallets.
Coffee from Brazil is facing 50% tariffs, Vietnamese coffee is likely to be subject to a 20% tariff.
With 15% tariffs in place on products from European Union nations, the prices of shelf staples such as Italian, Spanish or Greek olive oil could rise.
Trump has separately raised tariffs against Mexico, a major supplier of items such as tomatoes and avocados, though he has granted some key exemptions to those levies.
Still the Budget Lab at Yale estimates that food prices will rise 3.4% in the short-run, with fresh produce seeing a particularly sharp jump initially.
What tariffs has Trump announced and why?
Who are the winners and losers in US-EU trade deal?
The US-EU trade deal in numbers - how it compares to UK deal
France and Germany lead downbeat EU response to US trade deal
Beer, wine and spirits
The US is one of Europe's biggest alcohol export markets, with European companies, including Pernod Ricard and LVMH, selling €9bn (£7.8bn) of alcohol to the US each year. The country makes up about a third of Irish whiskey exports and almost 18% of champagne exports.
However, European Commission President Ursula von der Leyen has not said whether alcohol will be included in its tariff deal with the US or exempted along with other, unspecified, agricultural and food products.
Meanwhile, under tariffs announced in April, Mexican beers like Modelo and Corona are expected to become more expensive because of levies on aluminium, which affects beers poured from cans. Most beer in the US - 64.1% - is served out of cans, according to the Beer Institute.
CarsCars
The US imported about eight million cars last year - accounting for about $240bn (£186bn) in trade. Trump has been particularly keen to see tariffs on imported vehicles in the hope that raising the price of foreign-made cars will give a boost to American firms.
Most analysts estimate that the auto tariffs will add thousands of dollars to the prices of new cars in the US, which reached a record average of $49,738 in December, according to Cox Automotive. As competition for used cars increases, so could the prices paid for them. In March, he introduced a 25% levy on imported passenger vehicles and parts in an effort to "protect America's automobile industry".
Even for cars made in the US, prices will probably rise. He has since reduced this to 15% for cars from some key exporters, including the European Union and Japan. Importers will pay 10% on UK cars.
Many US car companies also have operations in Mexico and Canada, set up under the terms of the longstanding free trade agreement between them. The tariffs have not led to a sharp rise in car prices so far.
Component parts typically cross the US, Mexican and Canadian borders multiple times before a vehicle is completely assembled. Erin Keating, an executive analyst Cox Automotive, suggests that is because firms are so far "absorbing more of the burden [from tariffs] and not passing the added costs to consumers".
The new tariffs on car parts from Canada and Mexico are exempt for now while US customs and border patrol set up a system to assess the duties. But as costs mount, it's unclear how long that position will hold.
Anderson Economic Group has estimated that tariffs on parts just from Canada and Mexico could lead to costs rising by roughly $4,000-$10,000 depending on the vehicle. Trump's hopes that the tariffs will boost sales by US companies may also backfire.
Experts say these costs are likely to be passed on to customers, though Trump himself has said he "couldn't care less" if that happens as he believes it will encourage Americans to buy American-made cars instead. That's because many cars made in the US rely on parts or materials from overseas. Some brands sold by US companies are also assembled outside the country, including in factories in Canada and Mexico, meaning they are subject to the 25% levy. Those are now at a disadvantage compared to offerings from key foreign competitors.
What are tariffs and why is Trump using them?
Beer, whisky and tequila
Popular Mexican beers Modelo and Corona could get more expensive for US customers if the American companies importing them pass on the increased import taxes.
Modelo, and many foreign-made beers, will also be affected by the expanded aluminium tariff which will include canned beers starting on 4 April. Most of the beverage in the US - 64.1% - is poured out of cans, according to the Beer Institute.
Meanwhile, representatives from the American, Canadian, and Mexican spirit industries argued in a joint statement that drinks like bourbon, Tennessee whiskey, tequila, and Canadian whisky "can only be produced in their designated countries".
So, given they have to be made in those locations, supplies might be affected, leading to price rises.
Trump has also threatened a 200% tariff on alcohol from the EU, which could make Spanish wine, French champagne, or German beer more expensive for Americans, though it is not clear if this will be carried out.
HousesHouses
The US imports about a third of its softwood lumber from Canada each year, and that key building material could be hit by Trump's tariffs. After Trump raised tariffs on steel and aluminium earlier this year, prices for steel in the US increased. A 50% levy on copper is now set to start on 1 August, while Trump has also threatened tariffs on lumber.
Trump has said the US has "more lumber than we ever use". All three are key materials used to build homes.
However, the National Association of Home Builders (NAHB) has "serious concerns" that the tariffs on lumber could increase the cost of building homes - which are mostly made out of wood in the US - and also put off developers building new homes. The National Association of Home Builders (NAHB) in the US has warned that the measures could increase the cost of building homes - which are mostly made out of wood in the US - and also put off developers building new homes.
"Consumers end up paying for the tariffs in the form of higher home prices," the NAHB said."Consumers end up paying for the tariffs in the form of higher home prices," the NAHB said.
Imports from the rest of the world could also be affected. Just how much may depend on whether Trump resolves his trade dispute with Canada, one of the biggest suppliers, currently facing potential tariffs of 35%.
On 1 March, Trump ordered an investigation into whether the US should place additional tariffs on most lumber and timber imports, regardless of their country of origin, or create incentives to boost domestic production. The US buys about 69% of its lumber, 25% of its imported iron and steel, and 18% of its copper imports from Canada, a report by the Canadian Chamber of Commerce has suggested.
Findings are due towards the end of 2025. Energy and fuel
Maple syrup The European deal will increase the amount of energy Europe buys from the US, which von der Leyen said will "replace Russian gas and oil" with cheaper liquefied natural gas (LNG), oil and nuclear fuels from America.
Canada's billion-dollar maple syrup industry accounts for 75% of global production. But the tariffs don't necessarily mean good news for US consumers.
The majority of the sweet staple - around 90% - is produced in the province of Quebec, where the world's sole strategic reserve of maple syrup was set up 24 years ago. Generally speaking, Trump has made oil and gas imports exempt from tariffs.
"That maple syrup is going to become more expensive. And that's a direct price increase that households will face," said Thomas Sampson from the London School of Economics. But he has put a 10% rate on energy exports from Canada, America's largest foreign supplier of crude oil. According to official trade figures, 61% of oil imported into the US between January and November 2024 came from Canada.
"If I buy goods that are domestically produced in the US, but [which use] inputs from Canada, the price of those goods is also going to go up," he added.
Fuel prices
Canada is America's largest foreign supplier of crude oil.
According to the most recent official trade figures, 61% of oil imported into the US between January and November 2024 came from Canada.
While the US has introduced a 25% tariff on most goods imported from Canada, Canadian energy faces a lower rate of 10%.
The US doesn't have a shortage of oil, but its refineries are designed to process so-called "heavier" - or thicker - crude oil, which mostly comes from Canada, with some from Mexico.The US doesn't have a shortage of oil, but its refineries are designed to process so-called "heavier" - or thicker - crude oil, which mostly comes from Canada, with some from Mexico.
"Many refineries need heavier crude oil to maximize flexibility of gasoline, diesel and jet fuel production," according to the American Fuel and Petrochemical Manufacturers."Many refineries need heavier crude oil to maximize flexibility of gasoline, diesel and jet fuel production," according to the American Fuel and Petrochemical Manufacturers.
That means if Canada decided to reduce crude oil exports in retaliation against US tariffs, it could push up fuel prices.That means if Canada decided to reduce crude oil exports in retaliation against US tariffs, it could push up fuel prices.
Avocados
Avocados thrive in the Mexican climate.
Nearly 90% of the avocados consumed in the US come from Mexico.
The US Agriculture Department has warned that tariffs on Mexican fruit and vegetables could increase the cost of avocados.
Related dishes like guacamole could also become more expensive.
Additional reporting by Lucy AchesonAdditional reporting by Lucy Acheson