Here’s Where Trump Tariffs Will Pinch American Families The Most

After months of delays, higher tariffs on dozens of countries took effect Thursday on a wide range of products entering the United States, potentially reducing the average American family’s purchasing power.

These import taxes, reaching levels not seen in the United States since 1934, mean Americans will pay an average of 18.3 percent more for imported products, according to the Budget Lab at Yale, a nonpartisan policy research center.

Low-income families will be hit the hardest, according to the analysis. Ernie Tedesci, the Budget Lab’s director of economics, told NPR the tariffs could lead to an almost 4 percent drop in purchasing power of lower-income families, costing them about $1,500 annually.

“Lower income families not only spend a greater share of their income to begin with than higher income families do, but they spend a greater share of their budget on imports, in particular because imports tend to be lower cost than a lot of domestic alternatives,” Tedeschi said.

Anticipating the higher duties, many companies stockpiled goods and the majority of consumers who began their back-to-school shopping early have mostly been able to keep their spending in check, according to the nation’s largest retail trade group.

“Retailers have been able to hold the line on pricing so far, but the new tariffs will impact merchandise in the coming weeks,” David French, chief lobbyist for the National Retail Federation, told The Associated Press last week. “We have heard directly from small retailers who are concerned about their ability to stay in business in the face of these unsustainable tariff rates.”

A new survey from U.S. News & World Report showed 85 percent of parents are worried their money won’t stretch as far this year as they check off items on their back-to-school shopping lists.

The National Retail Federation’s survey found 67 percent of back-to-school shoppers started checking off their lists in June and early July, up from 55 percent the year before. Just over half of them said they were shopping early to to beat the tariffs.

“Consumers are being mindful of the potential impacts of tariffs and inflation on back-to-school items, and have turned to early shopping, discount stores and summer sales for savings on school essentials,” Katherine Cullen, the trade group’s vice president of industry and consumer insights said in a statement. “As shoppers look for the best deals on clothes, notebooks and other school-related items, retailers are highly focused on affordability and making the shopping experience as seamless as possible.”
It’s not just back-to-school items that are affected. Here’s a look at how the tariffs could affect American families.

How Top Trading Partners Are Taxed

To save money, check the country of origin.

About 15.5 percent of imports come from Mexico, which is taxed at a rate of 25 percent. About 13.4 percent of imports come from China, which is taxed at 30 percent, and 12.6 percent come from Canada, which is taxed at 35 percent.

Also among the top 20 trading partners:

• Exports from Brazil and India will face whopping 50 percent tariffs.
• Goods from Switzerland have a 39 percent tax.
• Countries paying 20 percent tariffs include Vietnam and Taiwan.
• Thailand, Malaysia and Indonesia will pay 19 percent tariffs.
• Countries paying 15 percent tariffs are Germany, Japan, South Korea, Ireland, Italy, France and the Netherlands.
• The United Kingdom and Singapore pay 10 percent duties.

Smartphones And Other Electronics

China and Vietnam supplied about half of the smartphones exported to the United States last year, but India — which faces tariffs of 50 percent when the duties are fully implemented at the end of this month — has become the top exporter after Apple centered its manufacturing in New Delhi.

According to the research firm Canalys, now part of Omida, China’s share of U.S. smartphone exports shrank from 61 percent in Q2 2024 to 25 percent in Q2 2025. At the same time, the total volume of smartphones made in India grew 240 percent and now accounts for 44 percent of smartphones exported to the U.S., up from only 13 percent in Q2 2024.

The situation remains fluid, with Trump announcing on Wednesday that he’s slapping a 100 percent tariff on computer chips, which will likely raise the cost of electronics, autos, household appliances and other items deemed essential in the digital age.

“We’ll be putting a tariff on of approximately 100 percent on chips and semiconductors,” Trump said in the Oval Office while meeting with Apple CEO Tim Cook. “But if you’re building in the United States of America, there’s no charge.”

Tariffs Affect 75% Of Food Imports

The cost to put food on the table is almost sure to go up, according to an analysis by the nonpartisan Tax Foundation, which said the tariffs will affect nearly 75 percent of U.S. food imports.

Last year, the U.S. imported about $221 billion in food products. Its top exporters are, in order Mexico, Canada, the European Union, Brazil and China, account for about 62 percent of U.S. food imports. The United States simply doesn’t make enough of some products, like bananas and coffee, to satisfy demand.

The U.S. imported more than $2 billion worth of bananas, mostly from Guatemala and other Central American countries, but land in suitable climates domestically is scarce, and producers in Florida and Hawaii aren’t able to easily expand production.

It’s the same with coffee. About 16.7 percent of Brazil’s total coffee exports go to the United States, where growers wouldn’t be able to match the unique flavor profile because it’s climate-driven.

Fish, beer and liquor are also likely to go up, the Tax Foundation said.

Conagra Brands, the maker of Hunt’s canned tomatoes, Reddi-wip and other brands, said in July that tariffs — particularly the 50 percent tax on imported aluminum and steel used in packaging — will add $200 million to its costs. The company said it is shifting some of its suppliers but also expects to pass some costs along to consumers.

“Nobody can afford to eat the tariff. It gets passed on,” Ben Aneff, managing partner at Tribeca Wine Merchants in New York City told The Associated Press. He planned to increase prices by 20 percent to 25 percent, due not only to tariffs, but also because of the declining value of the dollar.

Aneff said he was able to hold off on increasing prices because distributors and retailers accelerated their shipments from France and other European countries when the trade war began.
European wine prices could jump by 30 percent by September, he said.

India Tariffs: Drugs, Jewelry, Textiles

India accounts for 2.7 percent of goods imported by the U.S., but some goods are facing import taxes as high as 50 percent when the tariffs are fully implemented at month’s end. Goods are already subject to 25 percent tariffs.

India exported $87 billion in goods last year to the United States, its top trading partner, according to the Office of the U.S. Trade Representative.

The United States is India’s biggest customers for pharmaceuticals, accounting for about 20 percent of all exports in recent years, according to International Monetary Fund data cited by Reuters. Exports last year were valued at about $80 billion, with about 9 billion of that in pharmaceuticals, mainly cheaper versions of popular drugs.

Among the top products: wadding, gauze and bandages; antineoplastic and immunosuppressive medications, including those used to treat cancers; and analgesics, antipyretics and nonhormonal anti-inflammatory agents, such as pain relievers and medications used to reduce fevers.
India also is a leading exporter jewelry and precious stones, including unset diamonds, precious metal jewelry and jewelry clad with precious metal, such as those plated with gold or silver, USA Today reported.

India exports about $6 billion in terrycloth and cotton bathroom and kitchen linens, with U.S. customers buying about 36 percent of them, according to a New York Times analysis of government data.

Also, services exports, primarily IT and professional services, were worth $33 billion last year, and those costs are likely to go up as well.

Clothing And Shoe Costs To Rise

American-made apparel is hard to find, with 97 percent of of the clothing and shoes sold in the United States coming from other countries, primarily those in Asia. China, with a 30 percent import tax, leads the pack, but companies have been shifting more of their sourcing to Vietnam and Indonesia, where tariffs are lower at 20 percent and 19 percent, respectively, but also to India, which faces a 50 percent tax on its duties.

Steve Lamar, the president and CEO of the American Apparel & Footwear, told The AP that shoppers are likely to see higher costs and fewer promotions, and that some expensive-to–produce items may disappear entirely, especially this fall as tariffs start to play out.

Lululemon said in June that price increases will be modest and apply to a small portion of its assortment, while Ralph Lauren said it would be hiking prices for this fall and next spring to offset tariffs.

Bjorn Gulden, CEO of Germany-based Athletic wear giant Adidas, told investors last week that the company is reviewing different price increases for products for the U.S. but no decision has been made.

“Tariffs (are) nothing else than a cost,” he said. “And regardless of what people are saying, you can’t just throw a cost away. It’s there.”

Consumers can expect to pay 5 percent to 10 percent more for back-to–school shoes, Matt Priest, president and CEO of the Footwear Distributors and Retailers of America, told The AP.

Cars May Get More Expensive

If you’re planning to buy a new car, do it now, economists say.

General Motors said in July that its profits declined 35 percent in the second quarter, including a $1.1 billion hit from tariffs. Overall, the tariffs are expected to cost GM between $4 billion and $5 billion this year.

GM general manager Mary Barra said the company has made $4 billion in new investments in U.S. assembly plants to “greatly reduce our tariff exposure.” The company expects to build more than 2 million more vehicles in the U.S. each year as it scales production.

Toyota said second-quarter profits dropped 37 percent, largely because of the tariffs.

Ford and Subaru have also said they’ll raise prices in response to the tariffs.

Charmin, Tide And Pampers Go Up

In an earnings call with investors last week, Proctor & Gamble said it will have to raise prices on 25 percent of its products, including Charmin toilet paper, Tide laundry detergent and Pampers diapers, to make up for a $1 billion hit to its profits wrought by the tariffs, CNN reported.

The company manufactures about 90 percent of its products domestically, but many of its raw materials, packaging and some finished product comes from China.

Proctor & Gamble said prices on affected goods will rise about 2.5 percent in the coming months, but consumers may not notice because the rate is close to the rate of inflation.

The Associated Press contributed reporting.