Tariffs begin to hit consumer wallets

• Tariffs are already driving up prices on key goods such as electronics, home appliances, furniture, and auto parts, as import costs are passed down to consumers.

• More products may see price increases later in 2025, including clothing, toys, consumer packaged goods, and bicycles, depending on how long tariffs remain in place.

• Retailers have delayed some price hikes through stockpiling and supply chain adjustments, but experts warn that these stopgap measures may not hold if trade tensions continue.

As new rounds of U.S. tariffs target imports from China and other countries, American consumers are beginning to feel the impact on everyday products. While some price hikes are already appearing on store shelves, others may be just months away. ConsumerAffairs will provide regular updates on tariff impacts on consumer prices.

Several categories of consumer goods have already experienced noticeable price increases as businesses pass along higher import costs:

• Electronics: Items like smartphones, laptops, tablets, and televisions are among the first to reflect tariff-related increases. Many of these products rely heavily on Chinese manufacturing and components. Major retailers have confirmed modest price hikes or reduced promotional discounts on electronics since late 2024.

• Home appliances: Washing machines, microwaves, and refrigerators—especially mid-range models from Chinese and Korean brands—are seeing higher prices. Analysts point to tariffs on steel, aluminum, and finished goods as key drivers.

• Furniture: From sofas to dining sets, furniture imports—nearly half of which come from China—have been subject to tariffs since 2024. Consumers may notice price bumps or longer delivery times as sellers adjust inventories and sourcing.

• Tires and auto p arts: Car owners shopping for replacement parts may encounter higher prices on imported tires, brake pads, and other components. Domestic manufacturers still dominate some categories, but tariffs on Chinese imports have added costs in recent months.

Prices that may go up

While some products have escaped price hikes for now, industry experts warn that others are at risk if tariffs persist or expand:

• Clothing and footwear: Apparel retailers have absorbed many tariff costs so far, often by cutting margins or shifting production to countries like Vietnam or Bangladesh. However, brands warn that if tariffs remain or rise further, price increases on clothing and shoes may become unavoidable by the fall.

• Toys and sporting goods: The toy industry, heavily reliant on Chinese factories, has mostly maintained stable prices. That could change before the 2025 holiday season. Any delay in shifting supply chains could translate into higher toy prices by year’s end.

• Consumer packaged goods: Items like toothpaste, razors, and packaged snacks—products that rely on global supply chains for ingredients or packaging—have seen little movement so far. But disruptions in the flow of materials and containers due to broader trade tensions may gradually push prices higher.

• Bicycles and outdoor equipment: While some companies have rerouted manufacturing to avoid tariffs, many bike components and outdoor gear items still originate in China. If tariffs remain or expand, summer shoppers may notice higher prices or reduced selection.

Why prices aren’t rising faster

Retailers and manufacturers often use forward-buying strategies to stockpile goods ahead of tariff deadlines, temporarily delaying price changes. Others have absorbed short-term costs or tweaked supply chains. However, these measures may only offer limited relief.

While the early wave of tariff-related price increases is already affecting electronics, appliances, and furniture, a broader ripple effect could spread to clothing, toys, and other everyday items in the coming months. For now, consumers can expect selective price hikes—but a prolonged trade standoff could turn that trickle into a tide.