Trump’s new tariffs could hit Americans’ wallets hard: people go into “survival mode”
14 April 2025 17:53
The US is expecting a significant rise in the price of a number of everyday goods as a result of new trade restrictions imposed by President Donald Trump. According to analysts, in the coming months, American families may face higher prices for clothing, leather goods, consumer electronics, and furniture.
Much of these goods are imported from Asian countries, against which Trump has initiated a large-scale increase in duties. According to economists at the Federal Reserve Bank of Richmond, the new tariff measures will have a “disproportionate impact” on certain sectors of the economy, in particular those that depend on the supply of leather, textiles and other industrial products from the Asian region.
Experts warn that despite Washington’s desire to strengthen the protection of national production, it will be the consumer who will suffer in the short term, as prices for imported goods may rise sharply in the near future.
Last week, the US presidential administration imposed a 46 percent duty on imports from Vietnam, which is the second largest supplier of clothing to the US after China. This will especially affect leather goods such as bags, accessories, and shoes.
Cambodia, which provides the American market with clothing for well-known brands such as Lululemon and Hugo Boss, is also on the list: it is subject to an even higher tariff of 49%.
Electronics are next in line
The increase in duties will also apply to electronics. According to Ed Brzytva, vice president of the Consumer Technology Association, smartphones, laptops, and game consoles may soon become more expensive, as high duties also apply to Vietnam and Taiwan, the leading suppliers of electronics.
Price pressure will increase unevenly
Experts warn that the new duties could have a chain reaction for the entire market. Manufacturers are trying to adapt to the new conditions and stockpile goods, but this is only a temporary protection.
“Electronics sellers have already stockpiled products for 3-4 months in advance, which may slow down the price increase a bit. But once the stocks are exhausted, a new batch of goods will arrive with additional duties,“ economists explain.
The most acute effects will be felt by industries that depend on perishable goods, such as imported food products. Due to their limited shelf life, they are harder to stockpile, which means that prices will rise faster and more significantly.
According to the Yale Budget Laboratory, starting in 2026, the average annual expenditure of an average American family could increase by more than $3,800 if the Federal Reserve does not intervene. The reason for this price increase is the new high import tariffs imposed by US President Donald Trump.
The new duties officially came into effect on the night of April 9, and are already changing consumer sentiment in the country.
This is reported by leading Western media, including AFP and Reuters.
People are buying up equipment in anticipation of rising prices
According to journalists, many Americans have decided to be proactive:
“Some have rushed to buy new smartphones before the price hike, while others say they will now monitor their spending more closely than before,“ the AFP publication says.
In recent weeks, there has been a decline in demand as consumers have begun to spend with restraint, fearing a new wave of price increases. And this is just the beginning. According to experts, the United States has entered a new phase of the trade war, and tariffs that were previously targeted at individual products now cover entire industries.
Electronics from China are now subject to a cumulative duty of 145%, and clothing from Vietnam will rise in price due to a 46% tariff. The list of other goods that will become more expensive in the near future is also impressive:
- Vanilla from Madagascar – 47%
- Japanese tea – 24%
- Thai jasmine rice – 36%
- European wine – 20%
“Tariffs are bad. I have always been against such taxes. I plan to buy a new iPhone today while I still have a chance. It will be the last thing I buy until the situation changes,“ said Charles, a resident of Virginia.
Increased prices for cars and clothing
Not only technology, but everyday goods are already being affected by the duties.
“We just bought a car out of fear that tariffs are going to go up again,“ said Elizabeth Bradley, 40, in a Uniqlo store.
Her new electric car from Volvo, she said, could go up in price in the near future.
In New York, another shopper, Anastasia Nevin, admitted that she had already switched to “survival mode.”
“I have two children. I’m just trying to stay afloat. It’s hard. If prices rise further, I will have to save on everything.“
Inflation is not receding
Journalists point out that American families have not yet recovered from the inflationary impact caused by the COVID-19 pandemic. Although the rate of price growth has slowed, it has not returned to pre-pandemic levels:
“Prices are just growing more slowly – but they are not falling,“ economists say.
Analysts warn that if the tariff policy does not change, the coming years could be the most financially difficult for American families since the pandemic.
Thus, the new customs restrictions initiated by the Donald Trump administration are becoming a challenge to the daily lives of millions of Americans. Rising prices for imported goods – from household appliances to food – are putting pressure on family budgets, especially in the post-COVID period when incomes have not yet recovered. And while the policy goal is to support domestic producers, the real losses are borne by ordinary consumers.
