President Donald Trump’s tariffs could tax your wallet even as they attempt to spur U.S. job growth.
Trump’s tariffs of 25 percent on steel imports and 10 percent on aluminum tariffs, designed to reduce what he called the country’s “$800 billion trade deficit with the world,” went into effect in March. Canada, Mexico and the European Union are exempt — for now. Negotiations may lead to permanent exemptions for America’s closest allies.
“When costs of raw materials like steel and aluminum are artificially driven up, all Americans ultimately foot the bill in the form of higher prices,” warns Matthew Shay, president and CEO of the National Retail Federation.
“Prices are spiking, there’s no doubt about that,” Warren Buffett said this week at the annual shareholders meeting of Berkshire Hathaway, whose subsidiaries include steel users Precision Steel and MiTek.
In January, Trump announced tariffs on washing machines and solar panels.
Proposed are additional tariffs on 1,300 products — around $60 billion worth — imported from China. Trump says he wants to reduce the U.S. trade deficit with China, the difference between U.S. exports to and imports from that nation, which hit an all-time high of $375.2 billion in 2017. The proposal isn’t final, and Trump is considering tariffs on an additional $100 million worth of goods made in China.
If all the tariffs stick, you could pay more for everything from candy and canned goods to cake pans and cars, analysts say. It depends on how much of the tariffs’ cost manufacturers will pass along as price hikes for imported goods you buy. Also, domestic manufacturers may find room to raise prices once imports are more expensive or because they use imported parts even in products they label “Made in USA.”
Here’s a look at the 15 most likely tariff-driven price hikes to expect.