The Trump Tariffs Are Here, but What Will They Mean for the Cost of Stuff?

After flirting with tariffs for the first six weeks of his administration, the Trump administration has finally announced that it is implementing them. Goods that are imported from Mexico and Canada will face a 25 percent tariff, and goods imported from China will face a 20 percent tariff.

Those broad tariffs have already sent the stock market into a frenzy, and now, regular consumers are wondering what these tariffs will mean for the price of goods in their lives. Here's what we know.

According to CNN, more than 40 percent of all imports to the United States come from the three countries impacted by the tariffs, which means that it's possible that the price of basically everything will go up as a result. While not all of our goods are from these countries, there are likely to be a number of indirect effects related to the tariffs that cause more general inflation. Having said that, though, there are some categories where pain could be felt most acutely.

One core area where costs are likely to rise is food. Grocers operate at a low overhead, which means that they don't have much room to absorb the costs of the tariffs, and will have to pass them along to consumers. We import many fruits and vegetables from Mexico, and much of our grain and livestock comes from Canada, meaning that those goods will face tariffs and will likely cost more in stores as a result.

Cars and car payments could also see a steep increase in price, and that's true even of cars that are made in the U.S. No matter where a car is assembled, its parts from all over the globe, and these tariffs seem likely to raise the prices of those parts, and therefore of cars more generally.

“There’s probably not a vehicle on the market today that wouldn’t be affected in some form or fashion by tariffs,” Peter Nagle, automotive economist for S&P Global Mobility, told CNN. “I would think prices would start to change in the one-to-two weeks after the tariffs go into effect.”

Another area that could see sharp increases is electronics, which are imported from China in massive quantities. Ninety-nine percent of the shoes Americans wear are manufactured overseas, and we are also heavily reliant on China for things like appliances and sporting goods. TVs, laptops, and phones could all see surges in price as well, so you may want to hold up on upgrading your phone for the time being.

It's worth saying, though, that because of potentially retaliatory tariffs deployed by other countries, and the ripple effects of these price increases, general inflation could also be an issue. We simply don't know what all the side effects of these tariffs are likely to be, which makes it nearly impossible to predict every good that could increase in price. If the stock market is to be believed, those in business are pretty concerned about their widespread effects.