Like a lot of families, you may be wondering what will get more expensive with the tariffs that are being proposed. Many families are already struggling with rising costs and inflation, so worrying about what else might change is understandable.
We aren’t economists, but we did some digging to uncover what some experts are saying could change in price due to tariffs.
What is a tariff?
First things first. Let’s define what a tariff is. A tariff is a tax on imported goods, as the BBC explains. Some people assume that the company selling the imported goods pays the tax, but it’s actually the company buying the imported goods that pays.
In the case of the US, a company based in the United States would pay a tax for any goods it is buying from a country that has tariffs placed on it. For example, if the tariff applies to Chinese imports, any US company that wants to buy Chinese products would pay a tariff for purchasing those goods.
The tariff is applied toward the purchase price, not the retail price.
What tariffs are in effect?
As of February 4, 2025, the tariff on China is 10%, which means that a $10 imported Chinese product now has a tariff of $1 that the US company buying it is responsible for paying.
So far, no other tariffs are in effect, but the proposed tariffs that the US could see include:
- a 25% tariff on goods and energy from Canada (Neighboring states like Michigan, Wisconsin, and Missouri all receive energy from Canada)
- a 25% tariff on goods from Mexico
Bejing also enacted a retaliatory tariff on crude oil and US coal and liquified gas products.
What will get more expensive with tariffs?
If the proposed tariffs go into effect, some experts predict we could see rising costs on grocery and energy items. It is important to note that a tariff doesn’t automatically mean a company has to raise its prices or pass the cost of the tariff onto consumers. It’s ultimately up to the company paying the tariff how it handles it.
But historically, tariffs do tend to raise prices. Here are some examples of possible products to answer the question of what will get more expensive with tariffs.
Avocados
It’s true: Our beloved guacamole and avocado toast could be severely impacted by a tariff on Mexican imports. Mexico produces 90% of the avocados consumed in this country, so get ready for Taco Tuesday to feel a little less festive.
Strawberries
Mexico is also the leading US supplier of strawberries, so prices could be affected for this fan-favorite fruit.
My kids love fresh strawberries, and I already struggle to afford strawberries for my family in the winter, so this one would be especially unfortunate for us.
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Fizzy Drinks
On February 10, President Donald Trump said he would officially announce a 25% tariff on steel and aluminum imports from Canada, a move that echoes his first term, when he put a 10% tariff in place.
When his previous tariffs were enacted, it raised the prices of fizzy drinks produced in aluminum cans. A similar increase could be expected this time around, so watch prices on your fizzy favorites, such sparkling water, soda, or even alcoholic beverages.
New Cars
If you’re in the market for a new car, you may want to start shopping sooner rather than later. If the 25% steel and aluminum tariffs are enacted, they will most likely raise car prices, according to the BBC.
Both materials are used in car production, so historically, tariffs on imported construction materials have raised US car prices.
Phones
The price of new phones will most likely eventually go up after tariffs are enacted, but it might take a few months before the current warehouse supply is depleted.
In other words, companies have a stock to work through first before new phones are made that could be affected by the rising prices.
Construction Materials
This one is debatable, but a new tariff on certain types of lumber and drywall materials from Canada could affect construction and even housing prices. There’s already a tariff in place on softwood lumber from Canada, and some experts say the US can very easily produce all the lumber it needs for construction.
However, there could be some short-term impact while (and if) a switch is made and overall costs for things such as housing construction could be affected.
Shoes
According to CNN, 99% of footwear in the US is imported, so tariffs could potentially raise prices. Everything from kids’ footwear to adult shoes could be impacted.
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Electronics
Trump’s previous tariffs had excluded electronics, but the new proposed tariffs will reverse that exemption. That means all electronics, including electronic components such as chips, will be subject to a tariff.
Again, it could be some time before a price on the shelf will be higher, but eventually, when warehouse inventory runs out, prices on everything from tablets to computers to TVs could rise.
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