United States: US President Donald Trump announced sweeping new tariffs — extra taxes on imported goods — aimed at pushing companies to manufacture more in America.
Some of the country’s biggest trade partners, including the UK, Japan, and the European Union, negotiated lower rates. The EU’s deal cut the 30% tariff in half. But other nations faced steep increases. Canada’s rate rose to 35% after the August 1 deadline passed.
Trump argued the tariffs would bring in billions in revenue and encourage domestic production. But signs quickly showed they could raise prices for US shoppers, and experts warned that the full impact was yet to be felt.
So, what ended up costing more?
Clothing and Footwear
Most clothes and shoes sold in the US were made overseas, particularly in Vietnam, China, and Bangladesh.
While Trump reduced some of his steepest threats, taxes on imports from these countries remained high — 30% on goods from China and around 19–20% on products from Vietnam, Bangladesh, and Indonesia.
Major retailers, including Walmart, Target, Levi Strauss, and Nike, announced that prices on certain items would rise. After months of decline, clothing prices rose 0.4% between May and June. Analysts at Yale’s Budget Lab predicted an overall 37% surge in apparel prices in the short term, according to BBC News.
Coffee, Olive Oil, and Groceries
Nearly all coffee in the US is imported, meaning higher costs are passed on to coffee drinkers. Brazilian coffee faced a 50% tariff, while Vietnamese coffee was taxed at 20%.
European olive oil — especially from Italy, Spain, and Greece — also became more expensive with a 15% import tax. Meanwhile, tariffs on Mexico, a major source of tomatoes and avocados, pushed up produce prices despite some exemptions.
Yale’s Budget Lab estimated that food prices would rise by 3.4% in the short term, with fresh produce seeing the sharpest early increases.
Beer, Wine, and Spirits
Europe sold billions of euros’ worth of alcohol to the US each year, including Irish whiskey and champagne. It was unclear whether alcohol was exempt under the EU’s deal.
Mexican beers, such as Modelo and Corona, became more expensive due to tariffs on aluminum, which is significant because nearly two-thirds of beer sold in the US comes in cans.
Cars
In March, Trump imposed a 25% tariff on imported cars and parts to protect US automakers, later reducing it to 15% for some key trading partners, including the EU and Japan, and 10% for UK cars.
Initially, car prices did not increase sharply because many companies absorbed the costs. However, industry experts warned that this could change if the tariffs remained in place. The situation was complicated by the fact that many US-made cars relied on foreign parts or were assembled abroad, making them subject to the same tariffs.
Housing Costs
Steel and aluminium tariffs earlier in the year pushed up prices, and on August 1, a 50% tariff on copper took effect. Trump also threatened tariffs on lumber — a major concern, as most US homes are built from wood, as reported by BBC News.
The National Association of Home Builders warned that these measures could raise construction costs and slow new housing projects, especially with Canada — the US’s top lumber supplier — facing a 35% tariff.
Energy and Fuel
While most oil and gas imports were exempt from tariffs, Trump put a 10% tax on Canadian energy exports. Canada supplied 61% of the oil imported into the US, and its heavier crude oil was essential for refining gasoline, diesel, and jet fuel.
If Canada had cut exports in retaliation, fuel prices in the US could have climbed, even with the country’s own strong oil production.