Trump’s tariffs could make these items more expensive

Prices could rise on a variety of goods shipped to the U.S. from overseas under tariffs imposed by President-elect Donald Trump threatened with enforcement once he takes office next year, experts say.

Trump promised on Monday to impose a 25% tariff on all products from Mexico and Canadaalong with a 10 percent levy on Chinese goods to crack down on illegal immigration and drug flows into the United States. It is not certain whether the tariffs will come into force, while their impact if implemented would depend on how they are structured and whether certain categories are exempt.

Trump and his allies, including his pick for Treasury secretary, Scott Bessent, have argued that his first-term tariffs did not boost inflation and that import tariffs could provide valuable benefits to American workers and businesses. Among them Trump has saidprotect U.S. manufacturing jobs and increase government revenue, even though the tariffs are paid by importers and often passed on to consumers in the form of higher prices.

For their part, experts and business groups are clear that the tariffs would drive up prices. A flood of new tariffs on foreign imports would likely drive up consumer costs on everything from vacuum cleaners to tiki torches, most of which are imported from China and already subject to tariffs, according to Scott Lincicome, a trade expert at the Cato Institute, according to a policy research group.

“Many vacuum cleaners are made in China, so I can be pretty sure there will be some price impact,” he said.

Consumer electronics

According to the Consumer Technology Association, the tariffs would also reduce American consumers’ purchasing power by $90 billion for products such as televisions, headphones, laptops and tablets, video game consoles, smartphones and other electronic devices.

The trade group, which modeled the impact of a 10 percent tariff on Chinese imports coupled with a 60 percent levy on goods from the country that Trump previously imposed, estimated that laptops and tablets would see the biggest price increases, with the Costs would rise just as much as 45%. Video game consoles and smartphones could also see double-digit growth.

The researchers assumed that retailers would pass on any additional costs associated with the tariffs to consumers. In the smartphone category, the average price increase would be $213 per device, according to CTA.

“The likelihood of retailers or importers absorbing the tariff costs is very low, so the pass-through to consumers will occur quickly,” said Ed Brzytwa, vice president of international trade at CTA. “There will be price increases on all the products we looked at.”

Best Buy CEO Cory Barrie also said on the company’s earnings call Tuesday that Trump’s proposed tariffs would force the retailer to increase costs Range of consumer electronicsShe noted that “there is very little in the consumer electronics space that is not imported,” she said.

footwear

Shoes are another category of goods that experts are keeping an eye on. According to Footwear Distributors and Retailers of America (FDRA), 99% of shoes sold in the U.S. are imported from other countries, with 56% of shoe volume coming from China.

“We know that imposing tariffs on Chinese goods and Chinese shoes will hit working families the hardest,” FDA CEO Matt Priest told CBS MoneyWatch.

Some retailers may also decide to increase prices, whether or not they incur additional costs related to possible tariffs. “It’s a pretty handy excuse when you’re constantly fighting over price with consumers,” Lincicome said.

Household goods

Several retailers have already suggested that the proposed tariffs could force them to raise prices. In an email to customers this week, filter showerhead maker Jolie said tariffs on goods made outside the U.S. “would mean we would have to increase our prices.”

“If you’re thinking about purchasing a Jolie, now is a great time to lock in our current pricing,” the company added. Currently, a showerhead with a filter subscription costs $148. The company announced a “potential” new price of $178.

Home furnishings giant Ikea told CNN that Trump’s tariffs would make it harder for the company to keep its prices low if they go into effect.

“The tariffs make it more difficult for us to maintain low prices and be affordable for many people, which is ultimately our goal,” Jesper Brodin, CEO of Ingka Group, told CNN. “But it is beyond our control. We have to understand it and adapt.”

Gas prices

Imposing a 25% tariff on Canadian imports would impact crude oil imported from western Canada and refined at U.S. facilities, according to Gas Buddy analyst Patrick De Haan.

Motorists in the Great Lakes, Midwest and Rocky Mountain regions, which rely on gasoline refined in the U.S. from Canadian crude oil, would be hardest hit, he added.

“You can’t just process different oil overnight. That would require investment/years. More US supply would not help,” he added.

The impact would result in higher gasoline prices in those regions, ranging from 25 to 75 cents per gallon, depending on seasonal and refining factors, he estimated.

So should consumers start thinking about buying certain products now before tariffs are imposed next year? Brzytwa believes so.

“People should think about buying now. “All indications we have are that the Trump administration wants to impose far higher tariffs on imports from China as quickly as possible, including on products not yet subject to tariffs,” he said.

He added: “As a consumer, if I’m thinking about something I want to buy next year and I know the price could go up, I would want to buy it sooner rather than later.”