Travel & Lifestyle: Which Items Will Be Be More Expensive Because Of Trump’s Tariffs?

President Donald Trump said that 25% tariffs on imports from neighboring Mexico and Canada, as well increased levies on China, will start Tuesday, reigniting fears of a global trade war.

“Tomorrow — tariffs 25% on Canada and 25% on Mexico. And that’ll start,” Trump told reporters in the White House’s Roosevelt Room on Monday.

Chinese exports will receive an additional 10% tariff on top of the 10% the Trump administration already imposed earlier this year.

The Mexico and Canada tariffs were suppose to go into effect February, but were postponed for a month after negotiations with Trump and leaders in each nation.

Steep across-the-board tariffs on imports — effectively, a fee on foreign products brought into the country — have long been part of Trump’s plan to bring jobs back to American manufacturers. The last time he was president, he put tariffs on solar panels, washing machines, aluminum and steel. When in office, President Joe Biden increased some of Trump’s China tariffs, adding stiff levies on electric vehicles, solar panels and other products from the country.

Looking at the new proposed tariffs, many economists predict that Trump’s plans will likely make inflation worse, and increase costs for U.S. businesses and consumers alike. Sharp tariff proposals could cause prices of apparel, toys, furniture, household appliances, footwear and travel goods to spike “significantly” this year, according to the National Retail Federation.

“Trump’s proposed tariff policies, especially at higher rates, would disproportionately harm middle- and low-income Americans while failing to deliver meaningful economic benefits,” said Monica Morlacco, an assistant professor of economics at the University of Southern California.

Analysts estimate a $1,700–$2,600 annual reduction in after-tax income for the typical U.S. household, with lower-income families facing the most significant relative losses, Morlacco said.

“This is because tariffs function as a regressive tax, disproportionately impacting households that spend a higher share of their income on goods,” she said. “For the median household, this would represent a 4.1% decline in after-tax income.”

While tariffs aim to promote domestic industries, Morlacco said that they tend to act as indirect taxes on consumers, with limited effects on employment.

Don’t panic-buy any big-ticket items, unless you really need them.

“There’s still a lot of uncertainty about what goods might face new tariffs … and their impact on consumer prices will depend on retailer pricing strategies, currency adjustments, supply chain adjustments, and the availability of U.S. substitutes,” said Mark Haefele, the global chief investment officer at UBS Global Wealth Management and the author of the forthcoming book “The New Rules of Investing.”

So for instance, a 25% tariff does not directly translate to a 25% increase in the final product cost, Haefele explained to HuffPost: “Tariffs are applied at the dockside, whereas other costs like transportation, marketing and retail space are incurred domestically. We estimate that a 25% import tariff would only result in an average 10% increase in the final cost of product.” (How much of this cost increase gets passed onto the consumer depends on the retailer.)

Below, financial experts we spoke to share the items that will likely be affected in price.

Vivian Tu, the host of the podcast “Networth and Chill” and the author of “Rich AF: The Winning Money Mindset that will Change Your Life,” mentioned electronics: items like smartphones, laptops, tablets, smart watches, video game consoles and e-readers.

“They are already a high ticket item and many consumer electronics are manufactured in China or use components sourced there,” Tu told HuffPost. “If tariffs are imposed, the heightened cost of production and increased import costs on components like microchips will likely be passed on to consumers, meaning higher retail prices.”

Ed Brzytwa, the vice president of international trade at Consumer Technology Association (CTA), backed up Tu’s electronics recommendation.

In October, Brzytwa’s group released a study measuring the impact that Trump’s campaign proposals to raise tariffs on products from China would have on popular consumer tech products.

“We found that a universal tariff of 10% and a 60% flat tariff on all imports from China will cause huge price increases for U.S. consumers,” he said. “Laptops and tablets are predicted to rise by 46%, video game consoles by 40%, and smartphones by 26%.”

Chip Lupo, a writer and analyst at WalletHub, pointed to appliances.

“Appliances such as refrigerators and washing machines are expected to see price increases of nearly 20% because of higher costs for imported materials like steel and aluminum,” he said.

Recent Trump tariff history backs that up: A study conducted by two researchers at the University of Chicago and a Federal Reserve Board Governor found that washers cost an average of 12% more after Trump slapped tariffs on them in 2018, resulting in roughly $86 to $92 more in spending for consumers per appliance.

“Home improvement items like tools are often imported from China, and companies like Black & Decker and Walmart have already indicated potential price increases,” Haefele said.

Most furniture from big-name brands isn’t made in the U.S., so that means higher prices for us on couches and tables, Torabi said.

Ikea has already announced that the tariffs will push its prices higher. (As if buying and assembling a HEMNES dresser wasn’t a headache enough already.)

As HuffPost previously reported, tariffs could have far-reaching consequences for the auto market, since U.S. and European automakers rely on Mexico and Canada for car production, and China is the second-largest source of imported car parts.

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Wells Fargo analysts recently estimated that a 25% tariff on Mexico and Canadian car parts could add about $2,100 in cost for each U.S. assembly vehicle, and cars produced in Mexico or Canada could cost $8,000 to $10,000 more.

“The automotive industry is heavily reliant on imported components, so tariffs on parts and materials, such as steel, would raise production costs domestically, while tariffs on imported vehicles would directly increase retail prices,” Morlacco said.

Even a modest tariff on these high-cost items could significantly impact consumer cost on cars and key car parts.

New electric vehicles (EVs) were eligible for a tax credit worth up to $7,500 and up to $4,000 for used ones under Biden’s Inflation Reduction Act (IRA), but President Trump has gone after the IRA and other climate initiatives aggressively since taking office.

“Tax credits and tax incentives are not generally a very good thing,” Trump told Reuters during his presidential campaign when asked about the EV credit.

Some imported liquor prices could also change if tariffs are imposed, particularly if domestic consumers are willing to pay up for their favorite imported brands, Haefele said.

David Ortega, a food economist and professor at Michigan State University, shared a little more about how the tariffs could impact prices of imported food, especially those from Mexico.

“For groceries, the effect will depend on whether key agricultural imports are targeted,” he told HuffPost. “If tariffs are placed on fresh produce from Mexico, we might see higher prices for staples like tomatoes, avocados and peppers, since Mexico supplies a large portion of these goods, especially during the off-season in the U.S.”

To ride out any potential Trump-inspired price hikes, try to prioritize saving, even if just a small amount every pay cycle, Torabi said.

“If we think the researchers are correct in their estimates of how the tariffs will impact Americans, I’d say you’ll want to set aside an additional $2,000 at minimum for increased costs. That’s about $170 per month,” she said.

Lupo recommended “diversifying where you shop and supporting local producers where possible can help offset some of the burden.”

Instead of stressing too much about these changes and stockpiling goods, it’s probably smarter to start budgeting more effectively, Tu said.

“Track your spending and identify areas where you can cut back if necessary. Maybe for you that means looking for deals, using coupons, considering buying in bulk to save money on groceries and other essentials, or buying secondhand,” she said. “You want to try and shop smarter, not harder.”