As “day 1” of the new Trump administration approaches, one of its highest policy priorities could have a profound impact on consumers’ wallets.
Based on what’s known so far about President-Elect Donald Trump’s plan to raise tariffs on all imported goods, it’s likely U.S. shoppers would see prices rise for a wide range of items, including:
Everyday essentials like food, gas and clothing. Luxuries like consumer electronics, jewelry and cosmetics.Major purchases like new cars and homes.Goods made by U.S. manufacturers using imported raw materials and equipment.
That’s because tariffs are paid by the domestic companies importing foreign goods and materials, and those companies tend to raise consumer prices to cover higher import costs. After Trump’s victory, U.S. companies selling a range of products confirmed that if his tariff plans are enacted, they’ll raise their prices.
Throughout Trump’s campaign, economists tried to quantify the impact his proposals could have on American consumers. Multiple studies projected that U.S. households would see …