With the latest round of President Trump’s tariffs taking effect on Thursday, many American consumers may soon notice higher prices on everything from sneakers to bananas, as well as the cost of their next car.
The sweeping tariffs target nearly all U.S. trading partners and push the average tax on imports to more than 18 percent, the highest since 1934 and a steep jump from 2.4 percent in January, according to Yale’s Budget Lab. While the taxes are levied on importers, exporters and retailers, many economists warn that consumers will bear much of the cost.
Some of the biggest price increases are expected in everyday categories such as clothing, food and cars, according to projections from the Budget Lab. In the short term, shoe prices are forecast to soar by 40 percent, while apparel costs could rise by 38 percent.
Fresh produce prices are expected to increase 7 percent. The average price of a new car could jump by $5,800 in the short run. These price increases could add pressure to household budgets already straining to keep up with inflation.
“People may increasingly rely on debt to maintain their lifestyles,” said Shikha Jain, lead partner for consumer and retail in North America at consulting firm Simon-Kucher. “That inflationary cycle could feed itself, creating a vicious loop of scarcity and cost increases.”
In the lead-up to the new tariff deadline, businesses large and small have scrambled to adjust. Many were able to absorb some of the tariff costs during the early stages of Mr. Trump’s trade war. But some have begun to raise prices, while others have cut staff or reworked supply chains.
Executives from companies like Adidas, Stanley Black & Decker and Procter & Gamble have told investors that they plan to or have already passed on some tariff costs to customers.
Walmart and the toymakers Mattel and Hasbro had already issued similar warnings that tariffs were likely to lead to higher costs for consumers.
Chipotle Mexican Grill and McDonald’s executives have pointed to early signs of strain among lower-income U.S. households as spending at restaurants and on travel has begun to slow. Wayne Winegarden, an economist at the think tank Pacific Research Institute, said the burden of the tariffs would fall hardest on the people who are already struggling.
“Worse, these taxes, which is what tariffs are, harm lower-income and working-class families the most,” he said. “The economy is worse off now than in January 2025 because of this policy.”
Kailyn Rhone is a Times business reporter and the 2025 David Carr fellow.
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