US President Donald Trump’s reciprocal tariffs are set to take effect on August 1, just as American families begin back-to-school shopping. The tariffs could lead to a significant increase in the cost of consumer goods imported from other countries.
According to the Yale Budget Lab, households can expect to pay an average of $2,700 more in 2025 due to the tariffs. This prediction is based on the expected price increases for items such as computers (20.5%), leather goods (40%), and clothing (36%).
Fresh produce prices are also expected to rise by 6.7%, while coffee prices could increase significantly due to the high tariff rate imposed on Brazil, the world’s largest coffee producer.
The impact of tariffs will be felt across various sectors, including food, car parts, and electronics. While some industries might experience a temporary decrease in price, others will see significant increases, affecting lower-income families more than higher-income ones.
Ernie Tedeschi, director of economics at the Yale Budget Lab, warns that these tariffs are a “regressive tax” that disproportionately affects low-income families. The predictions from the Yale Budget Lab indicate that the total impact of Trump’s tariffs over the next decade could be around $2.9 trillion.
Source: https://www.forbes.com/sites/zacharyfolk/2025/07/24/trumps-tariff-deadline-is-august-1-heres-what-could-immediately-cost-more-from-food-to-electronics