New tariffs imposed by the US government on goods from Canada, Mexico, and China are poised to impact American consumers across various industries, from electronics and fashion to automobiles. President Donald Trump, invoking the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act (NEA), recently announced these sweeping tariffs, raising concerns about rising prices for everyday goods.
Canada and Mexico now face a 25% tariff on exports to the US, while Chinese goods will incur an additional 10% duty. The Tax Foundation estimates a significant financial burden on US households: “The tariffs on Canada and Mexico alone would increase taxes by $958 billion between 2025 and 2034 on a conventional basis, amounting to an average tax increase of more than $670 per US household in 2025.”
Wacom Movink tablet and laptop side by side.Alt: A Wacom Movink tablet positioned next to a laptop, illustrating potential price increases on tech gadgets due to new tariffs.
Impact on Electronics and Everyday Goods
The new tariffs are expected to increase the cost of goods manufactured in China, including popular electronics like iPhones. Previously, many consumer electronics, such as phones and televisions, were exempt from tariffs. This new 10% blanket tariff, however, could significantly affect prices. A BBC analysis notes, “The 10% blanket tariff Trump is proposing could affect the price of everything that is made in China and exported to the US. That applies to a lot of things – from toys and teacups to laptops.”
Retaliatory Tariffs and the End of De Minimis
The impact on US consumers is further compounded by expected retaliatory tariffs from the targeted countries. Experts predict that most companies will pass the increased costs onto consumers. China has already threatened countermeasures, while both Mexico and Canada have announced retaliatory tariffs of their own.
Adding to the strain on consumers, the White House press statement indicates the elimination of the de minimis exemption. This exemption previously allowed imported goods valued at $800 or less to enter the US duty-free. This change is expected to disproportionately affect consumers who purchase goods from e-commerce platforms like Shein, Temu, JD.com, and Alibaba.
Affordable Imports Face Uncertain Future
The US Customs and Border Protection reports that over $47 billion worth of goods entered the US under the de minimis benefit. This fueled the popularity of platforms like Shein and Temu, offering lower-income consumers access to affordable goods, albeit with longer shipping times. The removal of this exemption will likely eliminate this cost advantage.
Apple AirPods and AirPods Max sitting on the lid of a MacBook Pro laptop.Alt: Apple AirPods and AirPods Max headphones displayed on a MacBook Pro, highlighting the potential impact of tariffs on Apple product prices.
The increased tariffs are also anticipated to drive up the cost of food, beverages, appliances, and, notably, electric vehicles. The US imported over $150 billion in motor vehicles and parts from Mexico last year, and another $34 billion from Canada. These tariffs will likely affect the automotive industry significantly.
Trade War and Inflationary Concerns
The Peterson Institute for International Economics warns of a potentially disastrous impact on the interconnected supply chains, particularly in the automotive sector: “Intermediate goods—especially in motor vehicles—cross the borders multiple times before final assembly. The imposition of tariffs at each stage of fabrication would be disastrous.”
While the full impact of these tariffs remains uncertain, the potential for a trade war and its inflationary consequences is a growing concern for consumers and businesses alike. The changes are likely to reshape cross-border trade dynamics and impact pricing in the near future.
