What do Trump’s new tariffs mean for American consumers?
Americans awoke on July 24 to news of new tariffs of 10% to 12.5% on imports from more than 80 countries. What does it mean for consumers?
- On July 20, he set a new 50% tariff on a wide range of imports from Canada, and on July 24, he imposed 10-12.5% tariffs on imports from 60 trading partners.
- The tariffs affect products from wine to clothing, but many products, including energy and a broad range of food items, are exempt, meaning the impact on Americans’ wallets will be limited.
- Gov. Maura Healey slammed the tariffs, saying they have “increased costs for every Massachusetts business and resident.”
President Donald Trump’s new sweeping set of tariffs could affect businesses and the price of goods in Massachusetts.
On July 20, he set a new 50% tariff on a wide range of imports from Canada, and on July 24, he imposed 10-12.5% tariffs on imports from 60 trading partners.
The tariffs affect products from wine to clothing, but many products, including energy and a broad range of food items, are exempt, meaning the impact on Americans’ wallets will be limited.
Gov. Maura Healey slammed the tariffs, saying they have “increased costs for every Massachusetts business and resident.” She encouraged businesses in the state to apply for refunds.
“The people of Massachusetts have faced more expensive groceries, household goods, construction materials and more because of these tariffs,” Healey continued in a statement. “The Trump Administration must also issue refunds to American households – and the President needs to actually focus on making life more affordable and abandon his costly tariff plans for good.”
What do the new 10% tariffs affect?
The new 10-12.5% tariffs are replacing the global 10% import tax Trump imposed in February after the Supreme Court struck down the tariffs he had levied in 2025. The new tariffs took effect just as the old ones expired.
The tariffs are nearly universal, but there are many exemptions, including oil and gas, fertilizer and a broad range of imported food products, including many types of meats, nuts, seasonal fruits and spices. Many tech products are exempt, as is some medical equipment.
Consumers are likely to feel the greatest impact from the tariffs on clothing and other textiles, James Cox, managing partner for Harris Financial Group, told USA TODAY.
However, since the tariffs are simply replacing expired ones, any new consequences from the tariffs may be minimal, economists told USA TODAY. In fact, with more exemptions and a lower overall tariff rate, the new tariffs could cost American consumers a bit less than the old ones.
What do the new 50% Canada tariffs affect?
Trump said he is imposing 50% tariffs on many Canadian imports in response to what the administration calls discriminatory Canadian trade practices against the United States, particularly its auto industry. The tariffs are scheduled to take effect on Aug. 19, but the final rate and scope could still change.
The tariffs will primarily impact goods flowing into the United States from Canada’s auto, alcohol and dairy industries. An 18-page list of affected Canadian imports from the White House listed items from honey and flowers to plates and clothes. It also includes many different types of plywood, a key homebuilding material, which could raise the cost new housing construction.
However, most Canadian products, including oil, natural gas and critical minerals, are exempt, meaning the impact is likely to be limited.
Still, economists expect prices to go up.
Contributing: Rachel Barber, Daniel de Visé
