Tariffs in 2025 will hit these Americans and things we buy the hardest
Since President Donald Trump returned to office in January, he's been steadfast in his stance that imposing tariffs on other countries will lead to a stronger manufacturing base and more jobs in the U.S.
Economists have been just as steadfast in saying that taxing goods from other countries before they reach U.S. businesses and consumers will raise prices for all Americans. On Wednesday, Trump announced his widest-reaching set of tariffs, which will add at least 10% to the cost of everything we buy from most other countries.
The proposed tariffs, though, won't affect all Americans' pocketbooks the same.
A new study by Yale University's Budget Lab shows that families with the highest incomes will pay the most, but the tariffs will cut the deepest into budgets of families with the lowest incomes.
How tariffs will cut into Americans' spending power
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The Budget Lab estimates, as the Federal Reserve has, that U.S. consumers will feel the price increases the most in the first months that they are enacted.
Not all products will be affected the same way either. According to the Budget Lab's analysis, how much more prices may be inflated by tariffs:
◾ Clothing and textile prices could jump as much as 17% based on all tariffs announced in 2025. The tariffs announced Wednesday may add about 8% of that increase.
◾ Groceries prices could rise nearly 3%, including a 4% increase for fresh produce.
◾ Vehicle prices were largely unaffected by Wednesday's announcement, but are expected to rise 8.4%, or about $4,000, from other 2025 tariff announcements.
Where will prices rise the most because of the tariffs
How much commodity prices might rise based on all tariffs announced in 2025:
List of tariffs by country
Countries on which Trump said Wednesday the U.S. will impose tariffs:
The Budget Lab estimated that the U.S. tariff rate will rise to 22.5% including Wednesday's announced tariffs. They estimate tariffs alone will increase prices for the average household by 2.3% and lead to slower economic growth.
Oxford Economics, a global economic forecasting company, estimated Wednesday night that inflation could rise to almost 4% this and growth slow to 1.4%. The Budget Lab similarly expects all of the tariffs announced in 2025 could cut U.S. growth as much 1% this year.