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Wall Street Journal
a day ago
- Business
- Wall Street Journal
Americans are Shouldering Most of Trump's Import Taxes
U.S. businesses from Nike to General Motors have so far borne the brunt of costs from President Trump's taxes on imported goods, masking their impact on the economy. Wall Street believes it will soon be consumers' time in the barrel. While foreign companies that ship goods stateside have reduced prices somewhat in response to Trump's tariffs, they shouldered just 14% of total costs through June, according to Goldman Sachs. The bank estimates that U.S. firms picked up most of the multibillion-dollar monthly tab.
CNN
11-07-2025
- Business
- CNN
Trump just ramped up his tariff threats: Here's what could get more expensive
Many economists already believe it's a matter of time before Americans start to see sticker shock from the tariffs President Donald Trump has enacted. That timeline could speed up even more if Trump follows through with his latest package of tariff threats slated to take effect in three weeks. For the past three months, most imported goods have been subject to a minimum 10% tariff after Trump paused his 'reciprocal' taxes on dozens of nations. And steel, aluminum, cars and car parts from across the globe have been subject to separate levies starting at 25%, in most cases. Then, earlier this week, Trump sent dozens of letters to a variety of longtime US trading partners informing them that they could soon face tariffs ranging from a minimum of 25% all the way to a whopping 50%. And, in an NBC News interview that aired Thursday, Trump suggested hiking blanket tariffs on most countries. Collectively, the tariffs Trump has threatened to enact on August 1 would mark the highest average tariff rate America has seen in over a century, according to multiple estimates. Tariffs, which are taxes on imported goods, are paid upfront by businesses, who often pass on some of those costs to consumers by raising prices. But, given that overall inflation has so far remained tame, even with the tariffs that are already in effect, Trump and administration officials have insisted there's no reason to believe that any additional tariffs will cause goods to get significantly more expensive. 'The Administration has consistently maintained that the cost of tariffs will be borne by foreign exporters who rely on access to the American economy, the world's biggest and best consumer market,' White House spokesperson Kush Desai said in a statement to CNN. Earlier this week, the White House published a report finding that the price of imported goods has fallen since February. 'These findings contradict claims that tariffs or tariff-fears would lead to an acceleration of inflation,' the report states. However, in anticipation of higher tariffs, businesses have spent months stockpiling inventory. They've also been taking advantage of legal strategies that involve storing products in special warehouses and foreign trade zones, which allows them to delay tariff payments. 'These actions were always short-term fixes, and the opportunity to front-run the tariffs is ending. Thus, even without any further increases, the costs of the tariffs will be hitting the economy soon,' said Wayne Winegarden, a senior fellow and director at the Pacific Research Institute, a right-leaning think tank. 'Additionally, many companies have been willing to absorb the costs in the hope that the cost increases are temporary. But companies can only absorb the full cost of the tariffs for so long,' he added. Coupled with the other August 1 tariff increases Trump has proposed, Americans could be looking at a lot of higher prices, he said. Here are some of the goods that may be most vulnerable to price hikes: The US imported $97 billion worth of oil and gas from Canada last year, that country's top export to the US. The US has become more reliant on Canadian oil since the expansion of Canada's Trans Mountain pipeline, according to data from the US Energy Information Administration. Appliances, including dishwashers, washing machines, stoves and refrigerators, have already been getting more expensive, with prices rising by 0.8% in both April and May, the highest monthly increase in nearly four years, according to Consumer Price Index data. China was the top source of foreign appliances shipped to the US last year, while South Korea was the third-top source. Collectively, both countries shipped $22 billion worth of appliances to the US last year, according to US Commerce Department data. Goods from China currently face a minimum 30% tariff, while goods from South Korea are set to face a minimum 25% tariff on August 1. Other top foreign suppliers of appliances to the US, including Thailand, Malaysia and Indonesia, received letters from Trump subjecting their exports to the US to tariffs as high as 36% instead of the current 10%, as of next month. And even appliances produced domestically won't be immune to the impact of higher tariffs. That's because steel and aluminum, which are heavily used in many appliances, already face 50% tariffs. And copper, which is also needed in many appliances, could soon face a 50% tariff, too. Since copper is used in electric wiring to power devices like televisions, computers and cellphones, the 50% tariff Trump threatened could make these goods more expensive to produce and repair domestically. Additionally, many top countries that manufacture these goods Americans purchase are set to face higher tariffs compared to current rates. And even though Vietnam, a top supplier of electronics, appears to have agreed to a trade deal framework with the US based on what Trump announced, tariffs on goods from there would go up to a minimum of 20% from the current 10% if the deal is finalized. And if the copper tariff Trump were to impose applies to the copper used to manufacture these products abroad, that could also lead to price increases. Clothing, shoes and accessories, including handbags and phone cases, are predominantly made overseas. Goods from almost all the top countries producing them are due to soon face higher tariffs. For instance, since April, average tariffs on women's and men's clothing have been 32% and 25%, respectively, according to an analysis conducted by the nonpartisan Tax Policy Foundation. Once the pause ends, those rates will rise to 48% and 39%, the think tank estimates, based on the president's latest announcements. Meanwhile, average tariffs for purses will rise from 23% to 38%, TPC estimates. That doesn't necessarily mean consumers will see clothing and purse prices go up by the same percentages, since businesses tend to absorb a portion of the tariffs they pay rather than fully pass it on to consumers. While overall the US exports more to Brazil than it imports, much of the coffee Americans drink comes from beans grown in Brazil. That's because coffee requires a tropical environment to grow in, which means there are few options within the US. Coffee prices, which have already been rising this year, would likely get much higher if Trump tariffs goods from Brazil at a minimum of 50%. Brazil has been the top foreign supplier of coffee and coffee products to the US for several years, according to US Department of Agriculture data.
Washington Post
11-07-2025
- Business
- Washington Post
Trump plans to hike tariffs on Canadian goods to 35%
WASHINGTON — President Donald Trump said in a Thursday letter that he will raise taxes on imported goods from Canada to 35%, deepening a rift between two North American countries that have suffered a debilitating blow to their decades-old alliance. The letter to Canadian Prime Minister Mark Carney is an aggressive increase to the 25% tariff first announced by Trump in February, allegedly in an effort to get Canada to crackdown on fentanyl smuggling despite the relatively modest trafficking in the drug. The higher rates would go into effect Aug. 1.
Forbes
17-06-2025
- Business
- Forbes
Prices Trending Up Modestly After Tariffs, Study Shows
AUSTIN, TEXAS - JUNE 04: A person shops for candy at a Target store on June 04, 2025 in Austin, ... More Texas. Retail sales declined 0.9% in the U.S. in May according to the Census Bureau. (Photo by) Researchers tracking prices at major retailers are seeing prices trend up after tariffs, but at a relatively modest rate. The paper titled 'Tracking the Short-Run Price Impact of U.S. Tariffs' from researchers at Harvard and the Universidad de San Andres, tracks over 300,000 products across 4 major U.S. retailers and shows imported goods rising in prices at a faster rate than domestic products. Specifically since early March, imported goods have seen approximately 3% price increase to June 12 when this iteration of the study concludes. That's significantly smaller than the tariffs applied to many goods, especially since products from China made up over a third of the products sampled. That may mean that retailers and producers are shouldering more of the price impact compared to consumers. In addition, underlying product prices may represent a relatively small portion of the final price that consumers pay. Compliance with tariffs is a further complicating factor. Findings of low price impacts from tariffs to date would be consistent with recently reported economic data. For example, the Consumer Price Index for the month of May saw prices rise 0.1% month-on-month overall. Within that, food costs did rise 0.3% but the prices of cars and apparel, two categories where imports are significant, generally declined. Producer Price Indexes for May also saw modest price increases. That's notable because producer prices can be a leading indicator of prices that consumers pay in subsequent months. Although, commentary from the National Retail Federation does suggest that even though producer prices are not rising, recent substantial wholesale price deflation may be ending. Another complicating factor is that energy prices had eased for much of 2025. This matters since energy costs impact most products to some degree whether through raw materials or transportation costs. However, with conflict between Israel and Iran, oil prices are currently spiking albeit only to levels last seen in April. If energy prices were to rise further from here, we may see incremental inflation regardless of tariffs. There was an import surge ahead of tariffs that may have delayed potential price impacts as retailers rushed to stock up on products before tariffs came into effect. For example, U.S. first quarter growth was negative, primarily due to an unusually large spike in imports. Federal Reserve Governor Adriana Kugler said at a speech on June 5 in New York that, 'The import surge I mentioned earlier, ahead of sharp tariff increases, has delayed the price effects associated with those tariffs, and the reversal in that surge that I expect in the next few months will likely signal larger price increases.' This is also consistent with some larger retailers are saying that they do plan to raise prices over the coming months. However, it may also be the case that manufacturers and importers shouldering some of the tariff cost eases the price impact for retailers. Overall, it appears likely that there are more consumer price increases to come from tariffs which have not been picked up in the economic reports yet. Certainly tariffs are adding to economic uncertainty and complicate decision-making for the Federal Reserve. Economists and the Fed will be watching data for the second half of 2025 closely. For now, markets expect the Fed to cut interest rates later in the year by a modest amount. However, it also appears possible that tariffs may not be fully passed on to consumers. For example, tariff costs may be shared with producers and importers. In addition, techniques may be used to avoid tariff costs such as finding alternative suppliers. For now, the impact of tariffs has been less than anticipated, but that could change later in the year.
Yahoo
26-05-2025
- Business
- Yahoo
6 Costco Food Items That Are Likely To See Tariff Price Hikes
Costco is well known for having lower prices than other big-box stores, but even the warehouse club won't be immune from tariff-related price hikes. During a March earnings call, Costco CEO Ron Vachris noted that 'about a third of our sales in the U.S. are imported from other countries.' 'It is difficult to predict the impact of tariffs,' he said. Check Out: Read Next: Although Vachris said that Costco's 'goal will be to minimize the impact of related cost increases to our members,' it's still likely that some items will see price increases. Here's a look at the Costco food items that are likely to get more expensive due to tariffs. Current price: $13.99 for 16 fluid ounces Costco's pure vanilla extract is made from imported vanilla beans. Although Costco does not specify where the beans are imported from, many of the world's vanilla beans come from Madagascar, Mashed reported, which will be hit with a 47% tariff starting in July. Current price: $22.49 for 3 pounds Many of Costco's coffee offerings are made from imported beans, including this store-brand coffee made from Colombian beans. Although President Donald Trump rescinded the proposed 25% tariff on Colombia, the country is still subject to the 10% tariff rate imposed on all countries. See More: Current price: $27.99 for 2 liters Italy is subject to the blanket 10% tariff rate, which could make this olive oil made from Italian olives get more expensive. Current price: $149.99 for 11 pounds Costco sells a hefty 11-pound wheel of raclette cheese — that could be coming with a heftier price tag soon. The cheese is imported from Switzerland, which faces a 32% rate tariff beginning in July. Current price: $19.99 for two 10.7-ounce containers Saigon cinnamon originates from Southeast Asia, with the U.S. getting much of its cinnamon supply from Sri Lanka. The country will be subject to a 44% reciprocal tariff beginning on July 9. Current price: $54.99 for 4 pounds Costco sells a number of imported chocolate products, including this milk chocolate assortment that originates from Belgium. All imported chocolates are subject to a minimum 10% tariff. Editor's note: Costco prices and U.S. tariff rates are accurate as of May 25, 2025, and are subject to change. More From GOBankingRates Do These 5 Things Before You Book Your Next Trip 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) This article originally appeared on 6 Costco Food Items That Are Likely To See Tariff Price Hikes
