How might Trump’s proposed tariffs impact your shopping?

President-elect Donald Trump has said that on his first day in office he plans to impose tariffs on products imported into the U.S. In a post on Truth Social, he proposed a 25% tariff on all items imported from Canada and Mexico and an additional 10% tariff on imports from China. 

While Trump hopes the tariffs will encourage companies to make more products in the United States and create jobs, economists warn companies importing the products will need to pass along at least some of the cost to consumers.

“Looking at these broad-based tariffs, companies are not gonna be able to absorb all those costs, especially small- and medium-sized companies,” said Jonathan Gold, vice president for supply chains and customs policy at the National Retail Federation.

Gold predicts we could see some of the biggest price hikes in the toy aisle. China accounted for more than 77% of toy imports last year.  

“Currently, toys pretty much have a 0% tariff rate,” Gold explained. “So when you go from zero to 100% in some categories, that’s going to be significant.”

He said prices could rise for toys anywhere from 36% to 56%.

Clothing could also become more expensive, and tariffs would likely cause price hikes on everything from baby clothes to jeans to sweaters. Proposed tariffs on China may also increase the price of cellphones and other electronics. The Consumer Technology Association estimates smartphone prices would rise 26%. Other sectors that could feel the impact of tariffs include household appliances, furniture, footwear and travel goods.  

There are some items excluded from existing tariffs, and it’s worth noting that some analysts see at least some of the proposed tariffs in part as a negotiating tactic to extract concessions from foreign leaders, meaning they may not be implemented.