What Could Get More Expensive Under Trump’s Tariffs?

As “day 1” of the new Trump administration approaches, one of its highest policy priorities could have a profound impact on consumers’ wallets.

Based on what’s known so far about President-Elect Donald Trump’s plan to raise tariffs on all imported goods, it’s likely U.S. shoppers would see prices rise for a wide range of items, including:

• Everyday essentials like food, gas and clothing. 

• Luxuries like consumer electronics, jewelry and cosmetics.

• Major purchases like new cars and homes.

• Goods made by U.S. manufacturers using imported raw materials and equipment.

That’s because tariffs are paid by the domestic companies importing foreign goods and materials, and those companies tend to raise consumer prices to cover higher import costs. After Trump’s victory, U.S. companies selling a range of products confirmed that if his tariff plans are enacted, they’ll raise their prices.

Throughout Trump’s campaign, economists tried to quantify the impact his proposals could have on American consumers. Multiple studies projected that U.S. households would see their costs rise by thousands of dollars per year. If the expected price hikes reignite inflation, experts warn the economic fallout could go beyond higher prices to rattle the entire U.S. economy.

What we know about Trump’s tariff plans

Trump’s tariff agenda involves across-the-board import tax hikes. During the campaign, he said he would impose at least a 10% tariff on all foreign imports, which would be added to any existing tariffs. He also called for tariffs of 60% or higher on Chinese imports and 100% or higher on automobiles produced in Mexico.

In a Truth Social post at the end of November, Trump specified that he plans to sign an executive order on his first day in office that would slap a 25% tariff on all goods imported from Canada and Mexico, as well as increase tariffs on Chinese imports by 10%.

What could get more expensive

The U.S. is the biggest importer in the world, with the majority of foreign goods coming from China, Mexico and Canada, according to the Office of the U.S. Trade Representative.

Imports into the U.S. fall roughly into five categories that vary in how visible they are to the average consumer: food; consumer goods; vehicles, including engines and parts; industrial supplies and materials; and capital goods.

Food

The U.S. imported roughly $196.6 billion worth of food in the first 11 months of 2024, according to monthly U.S. Census Bureau data released on Jan. 7. Some imported food and beverage items (like coffee beans, cocoa, sugar and some fruits) can’t be sourced domestically; other items aren’t produced at enough scale to meet current U.S. demand. That means consumers could expect food prices to rise, especially these types of items:

• Fruit and fruit juices

• Fish and shellfish

• Bakery products

• Vegetables

• Meat products

• Wine, beer and other alcoholic beverages

• Food oils

• Unroasted coffee

• Dairy products and eggs

• Tea and other spices

• Nuts

• Sugar

• Cocoa beans

Consumer goods

Cell phones, clothes, household appliances, toys, sporting equipment, appliances, cosmetics, shoes, cookware — the list of imported consumer goods is long and totaled more than $731 billion for most of 2024, accounting for about a quarter of all imports recorded through November.

In public comments, U.S. companies that sell imported consumer goods — including Walmart, E.l.F. Beauty, Steve Madden, Columbia Sportswear and Stanley Black & Decker — have said that price hikes on some items are likely if Trump’s tariff plans come to fruition.

Additionally, a study by the Consumer Technology Association predicts tariffs would raise prices on laptops and tablets, video game consoles and smartphones.

Autos

The U.S. imported $437.2 billion in automotive vehicles, parts and engines through the first 11 months of 2024. Passenger cars top the list in this category, but it also includes parts and accessories. That means in addition to new car purchases, imported goods needed to maintain or repair vehicles also would get more expensive.

As with other consumer goods retailers, companies selling cars and parts plan to pass on the cost of higher tariffs to consumers. And they won’t necessarily wait until the import tax hikes take effect. In an earnings call in September, AutoZone CEO Philip Daniele said the company would know how big tariffs would be and would raise prices ahead of time. “If we get tariffs, we will pass those tariff costs back to the consumer,” he said.

Industrial supplies and materials

Consumers might not personally notice the impact of higher prices on every raw material. But there’s one whose fluctuations the average American rarely overlooks: Crude oil.

That’s because the cost of oil plays a major role in determining the price of gas. While the U.S. is the largest single oil-producing country in the world, the industry relies on imported oil because aging U.S. refineries aren’t built to handle the quality of crude that’s produced domestically. So, with more than $152 billion spent on imported crude oil during the first 11 months of 2024, consumers should expect tariffs to raise gas prices domestically.

» MORE: Can Trump lower gas prices when he’s president?

Regarding other goods in this category, it’s worth noting that, even though they’re purchased by producers, consumers won’t be off the hook completely. For example, higher prices for materials like lumber, steel, shingles, copper and other building supplies will raise costs for the construction industry. That could lead to less construction or more expensive projects, which could subsequently impact local housing markets.

Capital goods

Like industrial supplies, capital goods are a category of imports that stay relatively hidden from consumers because they’re used to produce consumer goods and services, rather than purchased by consumers. But their costs are baked into everything you buy. So even if the goods are produced domestically, it’s possible (even likely) that the machinery used to make those goods is imported.

The U.S. imported nearly $876 billion worth of capital goods in 2024, according to U.S. Census year-to-date data for November. Here are a few notable examples: