{"id":154780,"date":"2025-09-13T21:44:07","date_gmt":"2025-09-13T21:44:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/154780\/"},"modified":"2025-09-13T21:44:07","modified_gmt":"2025-09-13T21:44:07","slug":"how-much-costs-have-risen-since-trump-tariffs-went-into-effect","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/154780\/","title":{"rendered":"How much costs have risen since Trump tariffs went into effect"},"content":{"rendered":"

Inflation has picked up since President Donald Trump announced new import tariffs in April, with the latest consumer price index data showing outsized increases<\/a> in tariff-sensitive categories, including coffee, toys and televisions.<\/p>\n

Overall prices rose 2.9% in August from a year earlier, up from 2.7% in June and July, according to CPI data<\/a> released Thursday.\u00a0The CPI measures the cost of a broad basket of everyday goods and services, including groceries, rent and medical care.<\/p>\n

That leaves inflation drifting farther from the Federal Reserve’s target of 2%. Core inflation, which excludes volatile food and energy prices, rose 0.4% in August, the biggest monthly gain since January, and is up 3.1% from a year earlier.<\/p>\n

Taken together, this means more pressure on everyday household spending.<\/p>\n

How tariffs feed into inflation<\/p>\n

Although Trump’s sweeping tariffs were first announced in April, the effects have shown up unevenly<\/a> since goods move through supply chains at different rates and imports make up a larger share for some products than others.<\/p>\n

Even so, they still have a “significant impact on prices,” according to the Federal Reserve Bank of San Francisco<\/a>.<\/p>\n

Take bananas, for example. Prices climbed 4.9% from April through August \u2014 equivalent to an annualized pace of about 15% \u2014 a notable jump for a category that rarely sees much inflation. Virtually all U.S. supply comes from Central and South America and is now subject to a 10% tariff.<\/p>\n

Bananas aren’t the only industry affected. The Fed’s Beige Book survey<\/a> in August said all regions were seeing tariff-related price increases, spanning sectors from food and retail to manufacturing and health care, with many businesses reporting they’ve started to pass those costs on to consumers<\/a>.<\/p>\n

Overall, Americans now face an average tariff rate of 17.4% \u2014 the highest since 1935 \u2014 an increase estimated to cost households an extra $2,300 in 2025, according to the Yale Budget Lab<\/a>. (These estimates include tariffs imposed under the International Emergency Economic Powers Act, which remain in place while the court challenge is pending).<\/p>\n

To get a sense of where else inflation has been heading, here’s a look at five of the most-impacted products since April, compared with their historical norms for the same time period over the last 10 years.<\/p>\n

Coffee<\/p>\n

Coffee prices jumped 9.8% from April to August, including a 3.6% spike last month. Poor harvests<\/a> earlier this year had already tightened supply, but prices rose dramatically faster after new import tariffs<\/a> took effect.<\/p>\n

Since the U.S. grows less than 1%<\/a> of the coffee it consumes, the market is especially exposed to import duties<\/a>. Global tariffs that started at 10% in April were later raised sharply on major suppliers like Vietnam and Indonesia.<\/p>\n

Brazil \u2014 which supplies more than a third of the U.S.’s arabica beans \u2014 was hit with a 50% duty on Aug. 6<\/a>. That late move could keep coffee prices climbing in the months ahead, industry groups say<\/a>.<\/p>\n

Jewelry and watches<\/p>\n

Jewelry and watch prices surged 5.5% in August, far above their historical average monthly gain of 0.8%.<\/p>\n

The U.S. relies heavily on imports for luxury jewelry and its components, and since April a 10% tariff has been broadly applied to this category.<\/p>\n

But rates have gone higher still. On Aug. 7, the U.S. raised tariffs on all Swiss imports<\/a> \u2014 including watches \u2014 to 39%, far above the baseline. Switzerland supplies more than 90% of the U.S.’s imported precious-metal wristwatches, per the Wall Street Journal<\/a>.<\/p>\n

The U.S. has also extended tariffs to India, a leading supplier<\/a> of cut and synthetic diamonds, and to Japan, which exports premium mechanical watches to the U.S. Those additional levies could push jewelry and watch prices higher in the coming months.<\/p>\n

Bananas<\/p>\n

Normally a stable category in the CPI, bananas saw an unusually sharp 4.9% increase between April and August. With virtually all supply imported from Central and South America, the U.S. market is directly exposed to tariffs, including the 10% across-the-board duty imposed in April.<\/p>\n

Bananas remain cheap compared with most fruits and vegetables, with a reputation for long-running price stability<\/a>. Reflective of that stability, Trader Joe’s held its banana price at 19 cents each for more than two decades<\/a>, only raising it to 23 cents in early 2024.<\/p>\n

Televisions<\/p>\n

Television prices edged up 2.5% in August and are up 3.1% since April.\u00a0<\/p>\n

While the increase might seem modest, television prices have been on a downward trajectory since the late 1990s<\/a>. Manufacturing efficiencies and the rise of “smart” TVs that generate revenue from advertising and data collection<\/a> have helped drive sticker prices lower.<\/p>\n

Nearly all TVs sold in the U.S. are imported<\/a>, mainly from Mexico, China and Vietnam. Imports from Mexico can face tariffs of up to 25%, depending on compliance with USMCA rules<\/a>, while some shipments from China face rates as high as 30%<\/a> and Vietnamese TVs generally face a 20% duty<\/a>.<\/p>\n

The summer run up in prices stands out as a break from the usual pattern for a product that typically gets cheaper over time.<\/p>\n

Toys<\/p>\n

Toy prices rose 2.5% between April and August, the steepest four-month gain since 2021<\/a>.<\/p>\n

Like TVs, toys are largely manufactured abroad, with roughly 70%<\/a> of U.S. imports coming from China. Tariff classifications are not always clear, but many Chinese toy imports could be subject to tariffs around 30%, depending on classification, while some shipments from Vietnam may be taxed at higher rates.<\/p>\n

The increase is notable because toy prices have been on a long downward trajectory.<\/p>\n

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