The tariff policy implemented by U.S. President Donald Trump is currently a topic of widespread discussion.
This policy will impact the prices of many goods. On April 2, Liberation Day, Trump implemented two new types of tariffs: a 10% universal import duty, which is a broad tax, and a reciprocal tariff, which is a mutual charge.
If the prices of essential goods are expected to rise due to the implementation of these two new tariff types, there is ongoing discussion about which specific items will be affected and what the precise impact of these decisions will be on our daily lives.
Let’s determine the direct impact.
The 10% universal tariff implemented by Donald Trump on imports is likely to raise the cost of certain products in the coming weeks or months. According to the new policy, companies will incur taxes on imports and subsequently sell those goods to consumers at a higher price.
Consumers will likely be impacted at the point of sale.
For example, according to research from the University of Chicago, the prices of imported washing machines have risen due to the tariff policies implemented by Trump during his previous administration.
The tariffs have been increased by 11%, amounting to an additional 86 US dollars. The new policy outlines which products will see price increases, the extent of these increases, and how they will impact us.
Electronic Devices
Electronic devices, such as iPhones, may see an increase in prices. Trump’s reciprocal tariffs primarily target China, Taiwan, and South Korea, which are the largest exporters of electronic goods to the United States.These countries export a wide range of products, from Apple iPhones to television sets. The Trump administration is planning to impose a 34% reciprocal tariff on China, which means that the prices of products manufactured there and imported into the United States could rise shortly after the tariff policy takes effect on April 9.
According to the Council on Foreign Relations, nearly all iPhones are still manufactured in China, although some are also produced in India.
The Trump administration also announced on Wednesday that it will impose a 26% reciprocal tariff on imports from India.
Automobiles
Trump will impose a 25% tariff on auto imports, effective today. Additionally, imported automobiles will be subject to a 10% universal tax.
Some American-made vehicles contain parts imported from other countries, which will be subject to new tariffs, experts say. As a result, the cost of these tariffs is expected to rise.
According to an estimate by the Anderson Economic Group on April 2, American consumers may face an additional cost of $2,500 to $5,000 for the lowest-priced American cars and up to $20,000 for certain imported models.
Clothing
Clothes and shoes may become more expensive. The majority of clothing and footwear sold in American stores, such as Walmart and Target, are manufactured outside the United States.
China, Vietnam, and Bangladesh are the largest exporters in the world.
The Trump administration will impose tariffs on all three countries, with China, Vietnam, and Bangladesh identified as the largest exporters.
These figures will be 34% for China, 46% for Vietnam, and 37% for Bangladesh.
Of course, this will affect prices.
Furniture
Prices are likely to rise. According to CNBC, approximately 30 to 40% of the furniture sold in the United States is produced in other countries.
The primary countries exporting furniture to the United States are China and Vietnam.
Therefore, it is likely that the prices of furniture, particularly American brands that are imported to our market, will increase.
Coffee & Chocolate
Prices for coffee and chocolate are also expected to rise. According to the U.S. Department of Agriculture, the United States imports approximately 80% of its coffee beans from Latin American countries, such as Brazil and Colombia.
Both countries are subject to Trump’s reciprocal tariffs, allowing each country to raise the tariff by 10%.
The climate in the United States is not suitable for the cultivation of cocoa beans. According to the USDA, the countries that export cocoa beans include Côte d’Ivoire and Ecuador.
Those countries will face reciprocal tariffs of 21% and 10%, respectively, which may lead to a price increase as well.
Swiss Watches
The price of Swiss watches is expected to rise. The new 31% reciprocal duty on the import of Swiss watches is likely to impact the prices of all brands, ranging from affordable brands like Swatch to luxury timepieces produced by companies such as Rolex.
If you purchase these brands, you will also have to confront this impact.
Thank you.