US President has imposed a 125% tariff on all Chinese imports as of Wednesday, affecting various industries including steel, aluminum, cars, and consumer electronics. The impact of tariffs on consumers is uncertain, but experts say businesses may increase costs or pass them on to customers.
Higher tariffs will affect the prices of goods such as bags of chips, drink bottles, and some car models, potentially leading to “shrinkflation.” Some companies might reduce cheaper products with lower profit margins, while others may increase prices across the board.
The inventories of businesses like automakers Ford and Stellantis can only last for a few weeks or months, before prices are forced up. Industries such as consumer electronics, where supply chains are linked to high-tariff countries, will also see significant price increases.
Tariffs have been estimated to increase car prices by 15.8% and fresh produce by 6.2%. The impact on labor markets is expected, with unemployment rates potentially climbing 0.5% by the end of 2025, resulting in a loss of 600,000 jobs.
Consumers can prepare for the impact by cutting back on spending and assessing whether purchases are necessary. Experts advise consumers to think carefully about their dollar expenditure and consider future price increases when making big-ticket purchases like cars or computers.
Source: https://www.theguardian.com/us-news/2025/apr/10/how-much-will-trumps-tariffs-cost