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USA Today
13-04-2025
- Business
- USA Today
Parental woes: How tariffs could affect baby formula, diapers and other essentials
Parental woes: How tariffs could affect baby formula, diapers and other essentials Show Caption Hide Caption What President Trump's pause on some tariffs means for your wallet President Trump's pause on some tariffs may not be as relieving as it sounds due to ramped up levies on China, the top supplier of the U.S. Parenting presents its unique challenges and the unpredictable changes in tariffs only make it harder to budget for essential baby items. President Donald Trump's chaotic tariff switch-up has left many industries reeling, especially following his 90-day pause on imposing targeted tariffs on more than 75 countries announced Wednesday. A universal 10% still applies during this period, and some countries, such as China (currently saddled with an eye-watering 145% import tariff), were excluded. As global markets attempt to make sense of the economic turmoil, so do consumers, including parents who already spend more than $29,000 a year per child, according to a recent report by LendingTree. From ensuring child care, diapers, formula, wipes and clothes that are ever-changing in size to proper nutrition and car seats, the costs add up quickly for those with young children at home. And that's before the tariffs. As of Friday, no exemptions for baby or children's products are outlined in any tariffs. In recent history, the 2022 Formula Act lifted tariffs on imported baby formula amid a nationwide shortage. 'Unless these items are excluded from tariffs, you could see prices increase very soon, though immediate shortages are not expected,' said a report by BabyCenter shared with USA TODAY. The Juvenile Products Manufacturers Association (JPMA), a nonprofit trade organization representing 95% of the prenatal to preschool industry, sent a letter to the Trump administration in late February, asking that 'all juvenile products' be explicitly excluded from the tariffs on Chinese imports. 'The results can be devastating when American families are forced to rely on secondhand or older products that do not meet current safety standards,' the organization argued. 'The death of even one American child due to unavailability of affordable lifesaving baby products is too many.' Here's what we know so far about the effect tariffs may have on baby and toddler essentials such as diapers and formula. Charts show where tariffs stand now: See percentages, which countries are hit hardest How will tariffs impact baby formula? While prices will likely change, experts are not expecting another mass shortage of baby formula across the U.S. as we saw in 2022. Larger manufacturers will likely find a way to absorb or spread the additional costs, though smaller producers may face a more challenging battle in keeping products stocked and prices stable, David Warrick, executive vice president at Overhaul, a supply-chain risk management company, told BabyCenter. However, if you rely on a specialized, imported formula because of dietary intolerances and allergies, your wallet may be hit harder by the changes. Most of these specialized formulas are made in European countries, which, as of Thursday, were among those Trump hit 'pause' on implementing tariffs against. Imports from the European Union were set at 20% before Trump announced the 90-day delay on Wednesday, but the baseline 10% remains. More: Summer means new clothes, bikes, strollers and more. How will tariffs impact parents? 'Parents who rely on imported or specialty formula brands may feel the impact more acutely since those products are brought in at smaller volumes and already face higher distribution costs,' Warrick told BabyCenter. 'Tariffs only add to that.' The formula supply chain is somewhat centralized and fragile in the U.S. Because half of the United States' formula supply is purchased by the Supplemental Nutrition Program for Women, Infants and Children (WIC) government program annually, tight restrictions on which brands and types can be bought have resulted in something of a monopolized sector in the U.S. Parents felt the pain of this in 2022, when the shuttering of just one Abbott factory in Sturgis, Michigan due to contamination disrupted 20% of the entire nation's supply, resulting in a shortage that was only solved by the temporary removal of existing 17% tariffs to allow the mass importion of baby formula, primarily from Ireland, according to a U.S. International Trade Commission report. Before this, however, the U.S. exported more baby formula than it imported. From 2017 to 2021, its baby formula export volumes were seven times higher than imports. Canada was the largest recipient, receiving 70% of U.S. exports on average during that time period. How about diapers? Like with most products, 'made in the USA' does not necessarily mean every component therein was sourced and manufactured in the country when it comes to diapers. Even if you stick to popular brands that often tout their 'made in the USA' status, such as Huggies and Pampers, the equipment to make them, packaging and materials such as plastics may very well be imported, Warrick told BabyCenter. 'Even for products made in the U.S., there's no guarantee of price stability,' he said. 'Diapers rely on imported plastics and absorbent materials.' Like with formula, larger manufacturers are more likely to find a way to distribute or absorb these costs, though it is yet to be seen if they will. Disposable diapers, for example, are often made with fibrous wood pulp or plant-based materials such as bamboo fiber. China, Vietnam and India are the largest worldwide exporters of bamboo fiber, according to Volza Import Trade Data, and the primary exporters to the U.S. Before the 90-day pause, products imported from Vietnam faced a 46% tariff, while those from India were set at 26%. China, not one of the countries benefiting from the 90-day reprieve, had a 145% import tariff as of Friday. The increased cost of importing raw materials used in manufacturing products like diapers drives the overall production price up, and, in turn, the cost is passed on to the consumer. Parents may see other changes to their favorite diaper brand, such as fewer sales and promotions, smaller pack sizes or changes in how they are packaged, Warrick told BabyCenter. Fewer diapers for the same price is one way companies fight the additional costs. 'These subtle adjustments are common ways companies manage cost increases without changing the price tag – but they still affect family budgets,' Warrick said. The fortunate news, again, is that a widespread shortage is not expected. And strollers and car seats? Car seats and high chairs may be disproportionately impacted, thanks to the U.S.'s reliance on China for these products. As with formula, disruptions to the larger supply chain may significantly impact the cost and accessibility of strollers and car seats. Currently, juvenile products are heavily regulated by the Consumer Product Safety Commission (CPSC), according to the letter sent to the Trump administration by JPMA, and the complex supply chain built around these standards would be interrupted by the tariffs. 'Tariffs, particularly those on Chinese imports, will negatively impact product categories like car seats and cribs, the vast majority of which are manufactured in China,' said the letter. 'Safety experts unanimously agree that these products are critical to keeping American babies and young children safe and healthy.' More than 40 members of Congress likewise appealed to Secretary of Commerce Howard Lutnick on April 1, urging the administration to consider exemptions for baby and toddler products, specifically citing car seats, high chairs, strollers, and cribs. Citing Trump's promises of lower prices and Vice President JD Vance's touting of a 'pro-family' agenda, the letter asked the second Trump administration to follow in the steps of the first, which exempted some of these goods from Section 301 tariffs in 2018. 'American families should not be forced to choose between their livelihoods and reliance on poor quality baby gear,' said the letter. 'In addition, we are particularly sensitive to the cost of car seats because all 50 states have laws designed to protect children traveling in motor vehicles. Families should not have to pay more to comply with the laws that help keep their babies and toddlers safe.' Cost-cutting tips for parents concerned about tariffs One seemingly universal piece of advice for parents: do not panic and do not stockpile. While it is always good to have a small backup stock of things like diapers and formula, BabyCenter advised to keep it reasonable, as most products mentioned above are not expected to go into immediate or acute supply shortage. 'It's good to keep two weeks' worth of formula on hand – for most babies who are strictly formula-fed, two cans are enough,' Leah Rocketto, BabyCenter's associate commerce director, said in its report. 'As a general rule, though, I recommend having one large box of their current size (of diapers) and a small pack of the next size at the ready, the latter of which will come in handy should they go through a sudden growth spurt,' she added. Young children's sizes, preferences, tolerances and intolerances change quickly as they age, she advised, meaning a stockpile made right now may not even be applicable for your child a few weeks or months down the road. Instead of panic buying, BabyCenter suggests a few tips: Consider cloth or reusable diapers that can be washed at home. They can be purchased in packs and, while sometimes a higher initial investment, can replace weeks' worth of disposable diapers. that can be washed at home. They can be purchased in packs and, while sometimes a higher initial investment, can replace weeks' worth of disposable diapers. Look for similar formulas if the one you currently use becomes too expensive or difficult to find. Ask your pediatrician for suggestions on a similar type at a lower price tag. if the one you currently use becomes too expensive or difficult to find. Ask your pediatrician for suggestions on a similar type at a lower price tag. Set up subscriptions that give you discounts on scheduled, repeat orders, such as the 5%+ off on Amazon for setting up a subscription. that give you discounts on scheduled, repeat orders, such as the 5%+ off on Amazon for setting up a subscription. Check your community and local mom groups for giveaways. Parents often have unused, sealed products like baby formula and diapers that they want to get rid of when doing spring cleaning. Be sure never to accept an opened package of formula and buy equipment with safety standards, such as car seats, new when possible, BabyCenter advises. Parents often have unused, sealed products like baby formula and diapers that they want to get rid of when doing spring cleaning. Be sure never to accept an opened package of formula and buy equipment with safety standards, such as car seats, new when possible, BabyCenter advises. Use discounts and loyalty programs to shave more off the cost of essentials. If you made a baby registry, the retailer will likely offer discounts on products not purchased off the list. Rewards programs like frequent shopper cards or points-accumulating accounts can also add up over time. This story has been updated to fix a typo.
Yahoo
07-04-2025
- Business
- Yahoo
Trump's tariffs: How American families, parents will be impacted
The Trump administration's introduction of new tariffs will impact American families and parents, increasing the cost of many household goods, experts say. Economists and researchers say the cost to Americans will be significant, with estimates ranging from nearly $4,000 to almost $8,000 per household. An analysis from The Budget Lab at Yale University estimates the latest April 2 tariffs, which levies at least a 10% minimum tariff on countries apart from Canada and Mexico, will cost American households an extra $3,800 this year, an increase of approximately 2.3%. Meanwhile, Leo Feler, a chief economist for consumer research firm Numerator, told ABC News U.S. consumers will end up bearing the brunt of the cost of increased tariffs if new policies remain. "Since we import about $3 trillion worth of goods, if we are taxed at an effective rate at about 30% on these goods, if tariffs are effectively around 30%, collectively, American households and American businesses are going to pay an extra $1 trillion per year," Felder said. "That's about $7,700 per household in addition that we are paying for imported goods." How much it costs to raise a child in the US Various foods and household items, from fruits like bananas to staples like oats, are expected to increase in price. The Consumer Brands Association, which represents the consumer packaged goods industry that makes household, personal care, food and beverage products, said in a March letter to the Trump administration that some food product costs will inevitably increase because certain ingredients aren't available in the U.S. "While CPG companies make every effort to source ingredients and inputs from U.S. farms and suppliers, some key ingredients and products simply are not available in the U.S. Products like coffee, oats, cocoa, spices, tropical fruits and even tin mill steel (used to manufacture specialty food and household product cans) are some of the more obvious examples of where lack of domestic supply necessitates imports," the trade group said in part, adding, "Similar issues impact household and personal care manufacturers, in terms of specialty component parts that go into making products like diapers, cleaners, lotions and more." Baby formula and diapers appear not to be exempt from new tariffs so far, but tariffs on infant formula products have been temporarily lifted in the past, such as in July 2022, when Congress enacted the Formula Act amid the baby formula shortage at the time. Some diaper brands like Pampers' diaper products are made in the U.S. but some of the material components are imported. The cost of baby and children's products, from furniture and toys to car seats and safety products, are likely to increase if new tariffs continue. Juvenile Products Manufacturers Association, the industry trade association for baby and children's products, says "critical" safety products for kids including car seats and cribs and their components, which are often made in China, will negatively impact American families and is urging the Trump administration to consider tariff exclusions for such products. "Tariffs, particularly those on Chinese imports, will negatively impact product categories like car seats and cribs that safety experts unanimously agree are critical to keeping babies and young children safe," JPMA Executive Director Lisa Trofe said in part. "Tariffs will mean higher costs for consumers, placing a heavy and unnecessary burden on families that will undoubtedly result in fewer babies and toddlers having access to products critical to their safety." Trofe added that the impact of tariffs can be "devastating" and lead to safety risks if families turn to used safety products instead or even forego them completely. A group of Democratic lawmakers, including House Rep. Kelly Morrison of Minnesota, has also called for exclusions on tariffs of children's products they called "necessities," such as kids' furniture like high chairs and cribs and safety products such as car seats, which are mandated in all 50 states. The lawmakers issued a letter to Trump's administration on April 1 and pointed to past tariff exclusions for such products seven years ago. "Notably, the first Trump Administration has previously recognized the necessity of excluding baby safety products from tariffs, when the United States Trade Representative exempted some of these goods from Section 301 tariffs in 2018," the letter said in part. "We hope that the Administration will take to heart its promise to lower costs for American families by taking similar action to exempt these products from its blanket tariffs on Canada, Mexico, and China and invest in American-made baby safety products." With tariffs rising, here's what you can do now to prepare When it comes to toys, the Toy Association, a leading nonprofit representing the U.S. toy industry, told "Good Morning America" about 80% of toys come from China and that the association is calling for zero tariffs on toys, which they call "essential products" for children. "Toys are essential products for childhood development and early education, and our industry works tirelessly to ensure these products remain safe and accessible," Kathrin Belliveau, a chief policy officer at The Toy Association, said in a statement. "Working with toy associations around the world, we are reaffirming our aspiration for toys to remain tariff-free globally." ABC News has reached out to the Food and Drug Administration and the Department of Agriculture for comment. Trump's tariffs: How American families, parents will be impacted originally appeared on
