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These Products Could Get More Expensive Under Trump's Tariff Plan

Victor J. Blue / Bloomberg / Getty Images

Key Takeaways

• Tariffs that President-elect Donald Trump made a central proposal of his campaign would likely result in higher prices if they are enacted.
• Several economists and executives from America's largest retailers have warned of higher prices in recent weeks.
• Last week, Trump said he planned to introduce a 25% tariff on imports from Mexico and Canada and an additional 10% tariff on Chinese goods.

Tariffs proposed by President-elect Donald Trump are likely to lead to higher prices for Americans, according to warnings from several economists and retailers.

Last week, Trump announced plans to place a 25% tariff on all imports from Canada and Mexico, along with 10% on top of existing tariffs on anything coming from China. Whether Trump intends to actually implement the tariffs or is using the threat as a negotiating tactic is impossible to know. Regardless, Canada and Mexico have each urged the President-elect to reconsider, citing the harm tariffs would do to the economies of all countries involved.1

The impact on American consumers is uncertain, but experts generally agree the tariffs would stoke inflation. Ernest Tedeschi, the director of economics at the Yale Budget Lab, recently told S&P Global that he expects prices would rise 0.75%. He said that would be like consumers getting four to five months of normal inflation at the same time, and equate to a $1,200 loss in overall purchasing power for the average household.2

Here's a look at some products that could get more expensive under Trump's proposals.

Consumer Electronics and Appliances

As the vast majority of electronics and appliances that are sold in the U.S. are imported, they are a category that is likely to see price increases. Last week, the Consumer Technology Association said the proposed tariffs would be a "major inflation-causing tax on Americans and harmful to the U.S. economy."3

Best Buy (BBY) CEO Corie Barry said in the retailer's latest earnings call that there is "very little in the consumer electronics space that is not imported." She said that Best Buy expects to work with the Trump administration as it has with previous presidents, but noted that the consumer typically "ends up bearing some of the cost" when it comes to tariffs, according to a transcript from AlphaSense.

Apparel, Especially Shoes

Apparel is another frequently imported category, including footwear. The Footwear Distributors and Retailers of America (FDRA) estimates that 99% of shoes sold in the U.S. are imported.4 More than one-third of all footwear imports came from China last year, according to U.S. trade data.5

The FDRA has estimated that families paid $900 million more on children's shoes in 2023 than they would have without existing tariffs.6

Ernie Herrman, CEO of TJX Companies (TJX), acknowledged in last month's earnings call that the retailer and other clothing companies could see prices rising as a result of tariffs.

Cars, Both Gas and Electric

China is the largest car manufacturer in the world. Last year, it produced more than 30 million vehicles, nearly three times the output of the U.S., according to the International Organization of Motor Vehicle Manufacturers.7

Even cars produced in the U.S. could get more expensive, as materials like steel, aluminum, and graphite used in electric vehicle batteries would be subject to broad tariffs, according to recent reports from S&P Global and Argus.82 Electric vehicles could also get more expensive if Trump and a Republican-led Congress make good on their promise to repeal EV tax credits.

Imported Foods

More than half of the fresh fruits and vegetables that entered the U.S. in 2022 were from Mexico, according to the U.S. Department of Agriculture.9

The Produce Distributors Association recently told the Associated Press that tariffs on imported foods would result in higher prices for consumers, and lower margins for U.S. farmers if other countries respond with retaliatory tariffs of their own.10

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