Consequences of Trump’s actions: tariffs push up US consumer prices

(MENAFN) Reports indicate that U.S. tariffs under President Donald Trump have raised duties on imported goods to levels not seen in nearly ninety years, placing heavier financial burdens on households and businesses.

The new tariffs, implemented in early August, now cover nearly all U.S. trading partners. Analysts estimate that the average import tax rate has jumped from slightly over 2 percent at the start of the year to more than 18 percent, the highest since the 1930s.

While importers officially pay the duties, economists warn that much of the cost will be transferred to consumers through higher prices. Certain products may experience particularly steep increases.

Economic models from researchers suggest that retail costs for shoes could rise by about 40 percent and clothing by 37 percent as the tariffs work their way through supply chains. Everyday items, including fruits, kitchen appliances, and vehicles, are also expected to become more expensive, with new cars potentially costing thousands of dollars more.

Small businesses, especially in the Midwest, are already grappling with surging costs. In St. Louis, Missouri, retailers report supplier price hikes of up to 30 percent across categories ranging from bicycles and beauty products to board games, according to surveys.

Some items, such as washing machines and wine refrigerators, have seen price jumps as high as 35 percent. Even domestically produced goods are affected, as manufacturers pass on increased expenses for inputs, including imported steel and aluminum.

Mike Weiss, who owns a chain of bike shops in St. Louis, illustrates the challenge: "Normally, we would reprice things on an annual basis, not daily," Weiss said. "The goalposts keep moving."

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