President-elect Donald Trump has proposed imposing tariffs of 60% on products from China and 10% to 20% on other imports. Trade experts said the proposal would likely raise costs in sectors such as apparel and technology. It remains unclear how President Trump will implement tariffs. , and he could be smaller than proposed.
President-elect Donald Trump has big plans for tariffs. If implemented, Americans would see price increases across several product categories.
Some companies that produce apparel and auto parts have already begun preparing to raise prices if President Trump goes through with his plan, and some trade experts are predicting price hikes across a wide range of industries, including electronics and appliances. is predicted to rise.
Mary LaBrie, a senior fellow at the nonpartisan Peterson Institute for International Economics, told Business Insider that President Trump will use his trade law powers to expedite proposed tariffs on Chinese goods (within the first half of 2025). He said there is a possibility of doing so. But she added that the next president may not implement the 60% tariffs he proposed during his campaign. It also proposed imposing a 10-20% tariff on goods imported from other countries.
“Nothing is currently taxed at 60% and all sectors are susceptible to tariff increases,” LaBrie said, adding that lower tariffs such as 20% or 25% are expected. There’s also the question of how much of the tariff burden will fall on consumers, and Labrie said much of that will depend on the mechanism by which President Trump implements the tariffs.
President Trump has said his proposed tariffs would not affect consumer prices, but would instead act as a tax on other countries and boost U.S. manufacturing. The impact of his previous tariffs was mixed. For example, in 2018, tariffs on washing machines increased the price of laundry supplies. Small tariffs of 30% to 50% on Chinese imports that President Trump introduced during his first term did not prove to be inflationary, and President Joe Biden kept most of them in place.
“There will be a cost to the consumer, but it may take some time, like a slow drip, before they feel it,” LaBrie said.
Still, Jonathan Gold, vice president of supply chain and tariff policy at the National Retail Federation, said it makes sense for both businesses and consumers to be prepared for higher prices. He told BI that businesses were already concerned.
“Anything that comes into the country from elsewhere, whether it’s finished goods or inputs to production, is subject to that tax,” Gold said.
When asked about the impact of tariffs on inflation, President Trump’s press secretary, Caroline Leavitt, said, “President Trump imposed tariffs on China in his first term, creating jobs and stimulating investment; As a result, there was no inflation.”
Based on analysis from economists and trade experts, here are the goods that could become more expensive for Americans under President Trump’s tariff proposals.
apparel and shoes
The National Retail Federation estimates that if President Trump’s proposal were implemented, apparel prices would rise 12.5%, footwear prices 18.1% and travel goods, including backpacks and wallets, 13%.
Retailers that source more than 20% of their products from China, such as Crocs and American Eagle, are at high risk from President Trump’s tariff proposals, according to a Bank of America research note. Crocs told BI in a statement that the company has “strong partnerships” around the world and is “well-versed in navigating the various headwinds that impact the supply chain.”
“As always, we will continue to monitor and respond to changing regulations and laws as the new administration takes office,” Crocs said, adding that it will continue to explore sourcing products outside of China. .
American Eagle did not immediately respond to BI’s request for comment.
Some retailers have already announced preparations for price hikes in case President Trump’s tariff plan goes into effect. “We are very concerned about the imposition of tariffs,” Columbia Sportswear CEO Tim Boyle said during an October earnings call. He later told the Washington Post that the company “is going to raise prices” in response to President Trump’s plan.
electronics
An October report from the Consumer Technology Association estimated that the proposed tariffs would increase the cost of laptops and tablets by 45%, smartphones by 25.8%, video game consoles by 39%, and televisions by 9%. I am.
Because China is a major supplier of electronic products, everyday items Americans use, such as smartphones and laptops, will likely see higher prices. In 2023, China accounted for 87% of U.S. video game console imports, 78% of smartphone imports, and 79% of laptop and tablet imports, according to the CTA report.
Some companies may try to move production out of China, but it won’t be an easy process, Gold said.
“You can’t change the supply chain overnight,” Gold said. “It can take months, if not years, to find a satisfactory new vendor that meets all the various requirements, has a capable and skilled workforce, and has a working infrastructure in the country. It will take.”
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car
Major automakers import auto parts from China, Mexico and Europe, and some executives have already warned that the industry is likely to face higher prices under President Trump’s tariffs. Philip Daniele, CEO of auto parts company AutoZone, said at an earnings conference in September that if President Trump implements his tariff plan, he will “pass the cost of the tariffs on to consumers.”
“Typically we raise prices before then,” Daniele said, adding that prices will settle down over time. “So that’s what we’ve done historically.”
Honda Vice President Shinji Aoyama said at an earnings conference in November that Trump’s proposal would have a “huge impact” not only on Honda but other car companies, including General Motors and Ford. Still, he believes it will take time for the tariffs to go into effect, at which point Honda may consider moving production to countries not subject to U.S. tariffs.
Labrie said it was “very reasonable” to prepare for higher prices because much auto parts production comes from China. But if President Trump implements universal tariffs of 10% to 20%, the transition of production would be difficult because “we don’t really know if there’s going to be a safe place,” she said.
furniture
A report by the National Retail Federation estimates that a 10% universal tariff and a 60% tariff on imports from China would increase the cost of furniture by 6.4%. Specifically, the report says a $200 crib could end up costing $213 after tariffs, and a $2,000 mattress and box spring could rise to $2,128. .
The NRF added in the report that higher costs hit lower-income households the hardest: “They spend twice as much after-tax income on furniture as higher-income households.”
Additionally, Henrik Elm, chief financial officer of Inter IKEA, the group that connects IKEA stores and suppliers, told Reuters that the company is preparing for increased tariffs under the Trump administration, and that IKEA He said the company is working to improve its ability to respond to changes in the supply chain.
“I think we’re better equipped than ever before,” Elm said, adding: “Of course we’re not immune to change.”
home appliances
NPR reported in 2019 that Americans were paying more for home appliances like washing machines after President Trump imposed 20% tariffs on products. President Trump’s proposed tariff hikes are expected to increase the prices of items such as stoves, refrigerators, dishwashers and blenders by 19.4%, while appliances are expected to rise again, according to a report from the National Retail Federation.
The analysis found that the price of a basic refrigerator would rise from about $650 to $776.
Gold said President Trump’s tariffs are unlikely to go into effect on the first or second day, and “it’s hard to say at this point when consumers will feel the impact.”
“It may also depend on what individual companies’ tariff mitigation plans are and how far they are willing to go to reduce the impact on consumers,” Gold said. “Clearly, large companies may not be able to really absorb the impact of tariffs and may have little ability to do so compared to smaller and mid-sized companies, which may have to pass on the costs immediately.”
groceries
President Trump has vowed to lower food prices for Americans. At a town hall in September, he said he would lower food prices by limiting food imports to encourage U.S. production. But his tariff plan could raise food prices.
The centrist think tank Third Way analyzed eight common purchases that the United States either imports in large quantities or cannot produce domestically. Using data from the International Trade Commission, the report estimated that: President Trump’s tariff proposals have been implemented. The price of coffee will increase by $0.23, the price of frozen beef will increase by $1.09, and the price of olive oil will increase by $0.31.
“If we send President Trump back to the White House, we will cut taxes again and free up American energy to lower the prices of food and other goods,” Republican National Committee spokesperson Taylor Rogers previously told BI. I will,” he said.
