Prices for cars, clothing, and coffee are expected to rise in the US due to a new round of tariffs.

247 - With the entry into force, this Friday (8), of the new round of trade tariffs from the government of the President of the United States, Donald Trump, the prices of various products in the country — such as cars, clothes, shoes and even coffee — are expected to rise significantly. The information was originally published by The Washington Postin large reporter Signed by Abha Bhattarai.

According to the article, the new round of tariffs raises the average import tax rate to 18,6% — the highest rate since 1933. Economists warn that the measure is expected to cause immediate increases in consumer prices. “The tariffs have gone from temporary to permanent — and that changes how American companies will react,” said Justin Wolfers, professor of public policy and economics at the University of Michigan. “You’re going to start seeing higher prices as soon as businesses are convinced that this is here to stay, and that moment starts today.”

Direct impact on consumers' wallets.

According to estimates from Yale University's Budget Lab, the new tariffs are expected to cost American families an average of $2.400 per year. The increase will be felt especially in the apparel sector, with price increases projected as high as 39% for shoes and leather bags, in addition to a 37% jump in clothing prices in general.

Food products are also expected to become more expensive: imported coffee from Brazil has been taxed at 50%, which should put pressure on prices starting with breakfast. Professor Robert Blecker, from American University, was categorical: "Consumers will pay, starting with breakfast."

Fresh fruits and vegetables, in turn, could become up to 7% more expensive. Meanwhile, automobiles—which depend on imported parts from various countries—are expected to see an average increase of 12%, with an estimated impact of US$6.000 on the price of a new vehicle.

Companies are already starting to pass on costs.

Many companies were still absorbing the impacts of the tariffs, using previously acquired inventory or reducing profit margins. However, this breathing room is running out. Retail giants such as Walmart, Target, Williams-Sonoma, and Costco have begun raising prices on toys, household goods, diapers, shoes, and cleaning products.

Procter & Gamble, the maker of brands such as Tide, Pampers, and Oral-B, announced a 2,5% price increase starting in August to offset additional costs of $1 billion generated by tariffs. Nike, in turn, has already adjusted the prices of some of its footwear lines.

Uncertainty worries small and medium-sized business owners.

For entrepreneurs like Sharon Azula, founder of the company Tooth Brigade, the situation brings profound uncertainty. “We know we’ll have to raise prices at some point,” she said. “If our $16 stuffed animal starts costing more than $20, will consumers still want to buy it? We can’t absorb the increase, but we also don’t know if we’ll be able to continue the business.”

The toy industry, which imports more than 75% of its products from China, has already been severely affected. From April to June, prices rose 3,2% — eight times more than the average inflation rate for the period.

Trump justifies this by focusing on American industry.

President Donald Trump has defended the tariffs as a way to combat "unfair" trade practices by other countries, revitalize American industry, and boost what he called the "New Golden Age" of domestic production.

But for sectors heavily dependent on China, such as the toy industry, replacing suppliers is not simple. “China has decades of advantage in infrastructure, technology, and ethical manufacturing processes,” said Greg Ahearn, president of the Toy Association. “It’s not something that can be replicated in the U.S. overnight.”

The automotive and industrial sectors are feeling the effects.

Although automakers have tried to absorb some of the costs, the automotive sector is also starting to pass on the increases. According to Cox Automotive, cars assembled in Japan are expected to become 9% more expensive (about an additional US$3.010), while models produced in Mexico, such as the Chevrolet Equinox and the Ford Maverick, could rise by 10% (about US$3.550).

In the gear industry, Dean Burrows, president of Gear Motions, describes the scenario as the most uncertain in the company's 140-year history. “We have gears on their way to the US from Italy, and we still don't know if the tariff will be 15% or 27,5%. But either way, we'll have to pay it—and pass it on to the consumer.”

Economists warn of broader consequences.

Although the inflationary impact is, for now, limited to a few specific categories, analysts project broader effects in the coming months. “We started the year with average tariffs between 2% and 3%,” explained Şebnem Kalemli-Özcan, a professor at Brown University. “It’s naive to think that this won’t have serious economic consequences.”

Economic activity is already showing signs of slowing down, with declines in investment, hiring, and spending. And the most drastic measures—such as tariffs of up to 145% on imports from China—have not even been implemented yet.