{"id":54497,"date":"2025-08-02T08:01:10","date_gmt":"2025-08-02T08:01:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/54497\/"},"modified":"2025-08-02T08:01:10","modified_gmt":"2025-08-02T08:01:10","slug":"what-consumers-can-expect-as-us-sets-new-tariff-rates","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/54497\/","title":{"rendered":"What consumers can expect as US sets new tariff rates"},"content":{"rendered":"

Other trade partners, such as Cambodia and Bangladesh, had the tax rates on their exports to the U.S. reduced from levels the president had threatened to impose. Trump postponed the start date for all of the changes from Friday until Aug. 7.<\/p>\n

Tariffs are a tax, and U.S. consumers are likely to foot at least part of the bill. The Budget Lab estimated that prices will increase 1.8% in the short term as a result of the trade war the U.S. waged this year. That\u2019s the equivalent of a $2,400 loss of income per U.S. household, the group said.<\/p>\n

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Companies are dealing with tariffs in various ways.<\/a> Many automakers appear to be swallowing tariff costs for now. But the world\u2019s largest eyewear maker, EssilorLuxottica, said it raised U.S. prices due to tariffs. The maker of Ray-Bans grinds lenses and sunglasses in Mexico, Thailand and China and exports premium frames from Italy.<\/p>\n

\u201cRetailers have been able to hold the line on pricing so far, but the new tariffs will impact merchandise in the coming weeks,\u201d David French, chief lobbyist for the National Retail Federation, the nation\u2019s largest retail trade group, said Friday. \u201cWe have heard directly from small retailers who are concerned about their ability to stay in business in the face of these unsustainable tariff rates.\u201d<\/p>\n

Here\u2019s what we know about the tariffs and what their impact will be on U.S. consumers:<\/p>\n

\"ContainersContainers piled up in a cargo terminal in Frankfurt, Germany, on Friday.Michael Probst\/Associated Press<\/p>\n

Trump unveiled sweeping import taxes on goods coming into the U.S. from nearly every country in April. He said the \u201creciprocal\u201d tariffs were meant to boost domestic manufacturing and restore fairness to global trade.<\/p>\n

The president paused the country-specific tariffs a week later but applied a 10% tax to most imports. In early July, he began notifying countries that the higher tariffs would go into effect Aug. 1 unless they reached trade deals.<\/p>\n

In announcing the new rates for dozens of countries on Thursday, Trump delayed their implementation until Aug. 7.<\/p>\n

In the meantime, he announced a 35% tariff on imports from Canada would take effect Friday. But Trump delayed action on Mexico and China while negotiations continue.<\/p>\n

Other duties not specific to countries also remained in place Friday, like a 50% tariff on imported aluminum and steel announced in June.<\/p>\n

What tariffs are in place already <\/p>\n

The Trump administration reached deals with the European Union, Japan and South Korea that put 15% tariffs in place. A deal with the Philippines puts 19% tariffs in place while a deal with Vietnam imposes a 20% levy. This week, Trump announced a 25% tariff on goods from India and ordered a 50% tariff on goods from Brazil.<\/p>\n

\"AA worker waited for customers at Roopam Sarees, which sells clothing imported from India, on Thursday in Berkeley, California.Noah Berger\/Associated Press<\/p>\n

Tariffs are being challenged in court<\/p>\n

The U.S. Court of International Trade, a federal court that specializes in trade disputes, ruled in May that Trump exceeded his authority when he invoked an emergency powers law to implement tariffs.<\/p>\n

On Thursday, an 11-judge panel of the U.S. Court of Appeals considered the case, and judges expressed skepticism<\/a> that Trump could impose tariffs without congressional approval. The case is expected to wind up before the U.S. Supreme Court.<\/p>\n

Tariffs are already impacting prices<\/p>\n

The U.S. Commerce Department said Thursday that prices rose 2.6% in June,<\/a> up from an annual pace of 2.4% in May and higher than the Federal Reserve\u2019s goal of 2%. Furniture, computers and other items that often come from abroad were among the categories with higher average prices.<\/p>\n

Wendong Zhang, an associate professor in the Dyson School of Applied Economics and Management at Cornell University, said U.S. consumers could see prices increases in the coming months for appliances and other products that contain a large amount of steel and aluminum.<\/p>\n

But Zhang said a 15% tariff doesn\u2019t mean prices will immediately rise by 15%. Companies were aware of the tariff deadlines, and tried to stockpile goods and take other measures to mitigate the impacts, he said.<\/p>\n

Some Americans will see benefits<\/p>\n

Zhang noted that Trump\u2019s trade deals often contain specific provisions designed to boost U.S. exports. The agreement with the European Union, for example, calls for European companies to purchase $750 billion worth of natural gas, oil and nuclear fuel from the U.S. over three years.<\/p>\n

Some U.S. farmers could also see a potential upside, Zhang said. As part of its trade deal, Vietnam agreed to purchase $2 billion in U.S. agricultural products over three years, including corn, wheat and soybeans, according to the International Trade Council.<\/p>\n

But Zhang cautioned that agricultural agreements tend to be short-lived. Over the longer term, the uncertainty over tariffs could cause countries like China to back away from U.S. agricultural markets, he said.<\/p>\n

\"NespressoNespresso cartons displayed at the Nestle’s own supermarket, in Vevey, Switzerland, in February 2020.Laurent Gillieron\/Associated Press<\/p>\n

Food and drink prices will climb<\/p>\n

The tariffs will almost certainly result in higher food prices,<\/a> according to an analysis by the nonpartisan Tax Foundation. The U.S. simply doesn\u2019t make enough of some products, like bananas or coffee, to satisfy demand. Fish, beer and liquor are also likely to get more expensive, the foundation said.<\/p>\n

Ben Aneff, managing partner at Tribeca Wine Merchants and president of the U.S. Wine Trade Alliance, said shoppers would see prices rise 20% to 25% at his store and others starting Friday because of tariffs and the declining value of the dollar.<\/p>\n

\u201cNobody can afford to eat the tariff. It gets passed on,\u201d Aneff said.<\/p>\n

Aneff said shoppers haven\u2019t felt the impact from higher duties until now because distributors and retailers accelerated shipments from France and other European Union countries earlier in the year. But with the EU\u2019s tariff rate set to go up to 15% in a week, Aneff expects European wine prices to jump 30% in September.<\/p>\n

Clothing and shoe prices are already creeping up<\/p>\n

Ninety-seven percent of clothing and shoes sold in the U.S. are imported, primarily from Asia, according to the American Apparel & Footwear Association said. China leads the pack, but companies have been shifting more of their sourcing to Vietnam, Indonesia and India.<\/p>\n

Steve Lamar, the trade group\u2019s president and CEO, declined to estimate how much apparel and footwear prices may increase due to tariffs. But companies may offer fewer discounts or drop products starting this fall because they\u2019re too expensive to produce, he said.<\/p>\n

Matt Priest, president and CEO of the Footwear Distributors and Retailers of America, estimates prices for shoes are starting to go up for the back-to-school shopping season. He estimates price increases in the 5% to 10% range.<\/p>\n

\"AA car carrier drove past new cars parked in a lot at the International Car Operators terminal in the Port of Zeebrugge, Belgium, on Thursday.Virginia Mayo\/Associated Press<\/p>\n

Car prices hold steady \u2014 so far<\/p>\n

Some automakers have already raised prices to counteract tariffs. Luxury sports car maker Ferrari said Thursday it was waiting for more details of Trump\u2019s trade deal with the European Union before scaling back a 10% surcharge it put in place in April on most vehicles in the U.S.<\/p>\n

But for the most part, automakers haven\u2019t raised prices as they waited for details. Kelley Blue Book, which monitors car pricing, said the average U.S. new car cost $48,907 in June, which was up just $108 from May.<\/p>\n

But that could change. General Motors said last week that the impact of the tariffs could get more pronounced in the third quarter of the year. GM has estimated that the tariffs will cost it $4 billion to $5 billion this year.<\/p>\n","protected":false},"excerpt":{"rendered":"Other trade partners, such as Cambodia and Bangladesh, had the tax rates on their exports to the U.S.…\n","protected":false},"author":2,"featured_media":54498,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,1302,109,101,793,962,3139,111,795,965],"class_list":["post-54497","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-cars","tag-economic-policy","tag-economy","tag-general-news","tag-government-policy","tag-international-trade","tag-politics","tag-u-s-news","tag-world-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/54497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=54497"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/54497\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/54498"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=54497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=54497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=54497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}