Here are things that will cost Americans more post-Trump's new tariff

US President Donald Trump’s sweeping new tariffs, designed to boost American manufacturing and generate billions in revenue, are already hitting consumer wallets. While allies like the European Union and Japan have struck deals to dodge the worst tariffs, others like Canada and Vietnam are facing steep hikes from August 1. And for ordinary Americans, the price pain is just getting started. are now as high as 50 per cent on some imports, including Canadian crude oil and Brazilian coffee. The Budget Lab at Yale warns that clothing prices alone may surge up to 37 per cent in the near term.

So, what exactly will Americans be paying more for?

Clothes no longer cheap as chips

Whether it’s Levi’s jeans or Nike trainers, most US clothing comes from overseas. Countries like Vietnam, China, and Bangladesh dominate supply chains. According to the BBC, tariffs on Chinese apparel are now 30 per cent, with Vietnam and Bangladesh next in line at 19–20 per cent from August.

That’s already nudging up retail prices. After months of decline, US apparel prices jumped 0.4 per cent from May to June, per the Bureau of Labor Statistics. Analysts at Yale’s Budget Lab predict that the average consumer could soon pay over a third more for everyday clothing.
Big retailers like Walmart and Target are under pressure. Bloomberg reports many brands are passing on at least part of the cost to consumers, and the back-to-school season may be the first casualty.

Coffee

America imports nearly all its coffee. That’s bad news when Brazilian beans that will face a 50 per cent import tariff, and Vietnamese coffee 20 per cent, according to Reuters.

Even Starbucks may struggle to hold prices steady. As per Bloomberg, global coffee futures are rising due to trade tensions and adverse weather. Combined with tariffs, the daily caffeine fix could soon strain wallets, especially for low-income households.

Olive oil, avocados & tomatoes take a hit

Olive oil from Italy or Spain, tomatoes from Mexico, these food staples are caught in the tariff crossfire.

The 15 per cent tariff on EU goods, and separate duties on Mexican produce, are already showing up in shelf prices. Yale’s Budget Lab forecasts a 3.4 per cent jump in food prices, with fresh items like avocados and tomatoes seeing sharper spikes.

While some exemptions were granted, the coverage remains patchy. “The food aisle will feel the pain well before the factory floor sees any gain,” one food importer told Reuters anonymously.

What about alcohol?

Europe sends nearly €9 billion ($9.8 billion) of alcohol to the US each year, including champagne and Irish whiskey, as per Bloomberg.

While the recent EU-US deal removed some food tariffs, it’s unclear if alcohol was included. If not, drinkers may pay more for their favourite imports. Meanwhile, Mexican beers like Corona face higher prices due to aluminium tariffs, which raise canning costs. Given that over 64 per cent of beer in the US is canned, the impact could be wide.

Car buyers beware: Tariffs hit global supply chains

Trump’s 25 per cent tariff on imported vehicles and parts, softened to 15 per cent for EU and Japanese imports, still leaves others exposed. Although car prices haven’t soared yet, analysts warn this may change. “Manufacturers are currently absorbing the shock,” Erin Keating from Cox Automotive told BBC. “But it’s not sustainable.”

Ironically, some American-brand cars built in Mexico or Canada also face levies, meaning US companies may lose ground to foreign automakers with local plants.

Building homes? It’s going to cost more

Trump’s earlier tariffs on steel and aluminium have already nudged up home construction costs. A new 50 per cent levy on copper and looming tariffs on Canadian lumber could make things worse.

The National Association of Home Builders says the average home price could rise significantly if lumber tariffs go through. As per the Canadian Chamber of Commerce, Canada supplies 69 per cent of US lumber, 25 per cent of imported iron and steel, and 18 per cent of copper.

“Consumers end up paying for the tariffs in the form of higher home prices,” NAHB warned.

Canadian crude tariffs may fuel price hikes

Trump’s 10 per cent tariff on Canadian energy exports is a wildcard. While oil and gas imports were mostly exempt, the move may upset the balance.

According to official US data, 61 per cent of US crude oil imports (Jan–Nov 2024) came from Canada. American refineries depend heavily on “heavy crude” from Canada for diesel and jet fuel.

If Canada retaliates, Bloomberg warns fuel prices in the US could rise, even though the country is a net oil exporter.

Tariffs or tax? Americans will feel the cost

Trump insists the tariffs will bring jobs home and bolster the US economy. But as Yale’s economists, Bloomberg analysts and Reuters surveys suggest that the upfront cost may be borne by households.

Whether it’s denim, drip coffee, or diesel, for millions of Americans, the next shopping bill might come with a tariff-shaped surprise.

(With inputs from the agencies)