Trump’s prices will cost you about $ 4,000 this year, experts said in Bi

If you thought the cost of the grocery store was high before, economists and supply chain experts have bad news.

President Donald Trump announced 10% tariffs on goods from any imported country in the United States on Wednesday, and even higher prices for 60 business partners with a persistent trade deficit with the United States.

The prices of the large -range “liberation day” have an impact on countries, including China and Japan, as well as the European Union, and the territories near the inhabited antarctic only by penguins. They In addition to existing rates against the best trade partners in the United States, Canada and Mexico.

For consumers, the increase in import costs caused by Trump’s aggressive tariff plan should lead to higher prices for everything, pantry staples such as coffee and greater clothing and purchases such as cars and household appliances.

Ernie Tedeschi, the director of the Yale LAB budget economy, said price increases should increase the overall price of goods in the United States by 2.3%, which costs the average consumer of around $ 3,800 this year.

Tedeschi told Business Insider that existing prices against Mexico and Canada alone represent a planned increase of 1% prices of around $ 1,700 per household. The prices of the “Liberation Day” announced on Wednesday should lead to an additional 1.3%increase, or $ 2,100 per household.

“So 1.3% may not look a lot like the normal person, but $ 2,100 is a significant amount,” said Tedeschi. “Now, of course, it’s an average, so if you open the hood for this number, there is a distribution under this number.”

Price price on staples and products from the pantry

The exact intention of Trump’s pricing plan is not clear – the president says that his main objective is to bring manufacturing jobs to the United States, but some analysts suspect that he could try to trigger a recession to reduce interest rates deliberately – and the stock market has designed in response to uncertainty.

Imports from certain countries will be struck by higher prices than others, which causes uneven price increases in all industries. For example, China – which largely imports household machines and appliances, furniture, toys and electronics in the United States – will be submitted at a rate of 54% during the combination of new prices (34%) with those which were announced previously. The goods of the European Union, which mainly imports medical and pharmaceutical products and motor vehicles, will be subject to a new price of 20%.

Tedeschi said the cost of clothing should increase by around 8%. He added that the pantry staples such as sugar and coffee should increase the price by approximately 1.3%, while fresh products should increase by around 2.2%.

“The luxury of eating our favorite fruits and vegetables, whatever the season, is based on global imports with a lot of origin from Central and South America,” said Associate Professor of the University of Houston. “The prices will make many of these staples unaffordable.”

The American-mexico-Canada agreement, which replaced the North American free trade agreement in 2020, retains the Zero-Tarif Treatment of Alena for most agricultural, textiles, clothing and other goods that respect the rules of origin of the trade agreement. But while the United States obtains a large part of its products from neighboring Mexico prices, including tomatoes, lawyers and strawberries, other imports will be faced with new price increases – such as grapes from Peru or bananas and mangoes from the Philippines.

“The USMCA is still in force, so there are fruits and vegetables still covered by the agreement and are without a price, but then some of them, they are not covered,” said Chris Tang, a UCLA teacher who is a global management chain expert and the impact of regulatory policies, said Business Insider.

Storage and substitutions

Of course, consumers and businesses will try to find substitutions. However, Tedeschi said that he was taking time to carve out new supply chain routes, so that stores widen their offers and customers find alternatives appropriate to their typical favorites.

“So you can, literally and figuratively, eat the increase in short -term prices, because you discover what an appropriate replacement is, but there are areas where there will be available substitutions,” said Tedeschi. “Let’s say that coffee, for example, imported from Colombia. If Starbucks has a supply chain agreement with Colombia, over time, they can move this to another country or another supplier to mitigate the cost of the price, perhaps.

Some, like the star of “Shark Tank” Mark Cuban, have suggested that the Americans are now starting to store goods to avoid price hikes. They say that retailers can increase prices and “blame prices”, even if their products are made in the United States. Although the experts who spoke to Business Insider say that this may be true, the purchase of panic could further affect the supply chains and cause an increase in prices.

“This type of change change would actually exacerbate this price increase,” said Tang. “If the demand is more stable, then the price is more stable. If everyone starts to compete on toothpaste and toilet paper, prices are increasing.”

Low -income households will bring the weight

And this is only the immediate impact on everyday consumable articles.

The Consumer Technology Association estimated in a January report that Trump prices could increase the price of laptops and tablets from 46 to 68%, video game consoles from 40 to 58%and smartphones by 26-37%.

Car imports will see prices of more than 25%, which could result in $ 12,000 or more depending on an average car price of $ 48,000. Some car manufacturers have responded to the prices by offering employee price agreements, while others have taken a work break in their factories and began to cut the staff, previously reported Business Insider.

Not all households will be affected by prices. In response to Trump’s commercial plan, Tedeschi said that low -income households will pass about twice and a half times more from their income than the most united households.

KIDD said that pharmaceutical products, which represent $ 251 billion in imports, will face 20% to more than 50% prices, which will disproportionately hang Americans without insurance and will be able to define an increased franchise for people covered by an employers’ health plan.

“Low -income households are more likely to buy imports. They spend a larger share of their income than high -income households, and they are therefore more vulnerable to prices than higher income households,” said Tedeschi. “And obviously, people care about food for food, but it also has distributional implications. The more the price of food increases, the more low -income families also disproportionately affects.”