Consumers across the country are bracing for higher prices on everything from coffee to cars as President Donald Trump’s full suite of “Liberation Day” tariffs go into effect next week.
Some public companies had previously delayed price hikes, but that could change as more tariffs become effective.
Prices for clothes and shoes could jump. In the short term, consumers could pay 39% more for shoes and 37% more for clothes, with shoes and apparel prices expected to gain 18% and 17% higher in the long term, respectively, according to the latest figures from the Yale Budget Lab. That group projected that the tariffs would increase average household costs by about $2,400 annually.
The U.S. Chamber of Commerce, the largest business lobby, reported that manufacturers, wholesalers, and retailers are paying higher prices for goods and services. At the same time, “they are slowly beginning to raise the prices they charge their customers,” said Neil Bradley, executive vice president, chief policy officer, and head of strategic advocacy at the U.S. Chamber of Commerce.
Countries with the highest tariffs include Syria (41%), Laos (40%), Myanmar (40%), Switzerland (39%), Serbia (35%) and Iraq (35%). Some countries could face higher rates, including Brazil, depending on final rates, most of which Trump set unilaterally.
Trump cut deals with about two-thirds of the United States’ major trading partners. Those nations mostly came in under 19%. Most got 15%. So far, the United Kingdom has the lowest rate at 10%. Trump extended the deadline for several other key trading partners, including Canada, Mexico and China.
The White House said Thursday that Trump would continue to be open to deals that benefit America.
Consumer Technology Association CEO Gary Shapiro said the trade group hopes to see more deals to lower tariffs in the coming week.
“Constant shifts in tariff policy make it increasingly difficult for U.S. companies – especially startups and small businesses – to plan, invest, and compete globally,” he said. “CTA continues to urge the administration and Congress to pursue a predictable, forward-looking trade agenda rooted in fairness, and collaboration with, trusted partners. American innovation thrives when markets are open, trade rules are clear, and businesses are free to focus on creating jobs and bringing groundbreaking technologies to market.”
He added: “We expect the administration will use the next seven days before the tariffs go into effect on August 7 to negotiate further deals with trading partners, including with our northern friend and neighbor Canada, to lower tariffs, provide greater certainty, and eliminate barriers to trade.”
Businesses could still get relief through the courts. On Thursday, a panel of 11 appellate court judges scrutinized Trump’s tariff authority, asking attorneys on both sides of the case tough questions about the president’s authority to restructure global trade without help from Congress. The court didn’t rule on the tariffs on Thursday but is expected to do so in the coming weeks.
Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from U.S. families, and pay down the national debt.
A tariff is a tax on imported goods paid by the person or company that imports the goods. The importer can absorb the cost of the tariffs or try to pass the cost on to consumers through higher prices.
