US President Donald Trump is set to implement reciprocal tariffs on goods imported from almost every country, which could significantly increase the cost of imports for American consumers.
Trump’s plan aims to match tariff rates imposed by other countries on American goods, citing an “unfair” practice. The US weighted average tariff rate would rise to nearly 5% if all countries matched their tariff rates with the US, according to Deutsche Bank economists.
However, experts warn that this policy could lead to higher prices for consumers, particularly in industries where imports are cheaper and scarce. For instance, medical-grade gloves and certain electronic components may become more expensive due to reduced supply from abroad.
Some exceptions would apply, such as Australian steel, which Trump’s former Commerce Secretary Wilbur Ross recently secured an exemption for. However, other countries producing essential goods may not be granted similar exemptions.
The impact of reciprocal tariffs on American consumers is difficult to predict and depends on various factors, including the ability of companies to absorb costs and adjust supply chains.
Source: https://edition.cnn.com/2025/02/11/business/reciprocal-tariffs-expensive/index.html