Donald Trump’s proclaimed ‘Liberation Day’ has arrived, potentially bringing a significant increase in prices for everyday goods in America.
On April 2, Trump introduced a series of severe tariffs on all foreign goods imported into the United States.
The President announced his intentions to ‘Make America Wealthy Again’, referencing the familiar ‘Make America Great Again’ slogan from his presidential campaigns. However, this move might actually strain American wallets due to the anticipated rise in prices of many items resulting from the newly-imposed tariffs.
Each country will face a minimum of 10 percent tariffs on goods entering the US, while certain countries could face tariffs as high as 50 percent if deemed ‘worst offenders’ by Trump.
Countries subject to the base 10 percent tariff rate include:
Countries with higher custom tariffs are:
Three countries have been exempted from Trump’s new tariffs: Mexico, Canada, and China. This exemption is not due to favoritism; these nations have already faced increased tariffs on specific goods prior to the announcement.
As a result of Trump’s new tariffs, various everyday items are expected to see price increases in the US, as companies may raise product prices to offset the tax costs.
Trump has issued a stark 200 percent tariff increase on alcohol from the EU, potentially making items like Spanish wine, French champagne, and German beer much pricier.
The US, known for being a top importer of coffee, sources much of it from Latin America.
Brazil and Colombia, major coffee exporters to the US, are both impacted by a 10 percent tariff.
China, Vietnam, and Bangladesh are significant exporters of clothing and footwear to the US, with Vietnam facing a substantial 46 percent tariff, set to take effect on April 9.
A 25 percent blanket tariff on all car and car part imports has been announced by Trump, impacting not only imported vehicles but also US-manufactured ones.
According to Anderson Economic Group, vehicle prices could increase by $2,500 to $20,000.
Canadian maple syrup, a staple in many US households, is also likely to see a price hike, given that 90 percent is produced in Quebec.
Thomas Sampson from the London School of Economics commented: “That maple syrup is going to become more expensive. And that’s a direct price increase that households will face.”
He continued: “If I buy goods that are domestically produced in the US, but [which use] inputs from Canada, the price of those goods is also going to go up.”