With the stroke of a pen, President Trump imposed a new baseline ten percent tariff on imports from almost all countries, and higher rates for the European Union, China, Vietnam, Japan, India, and others.
The tariffs are set to go into effect April 9th.
"Most of the cost of these tariffs is going to be passed along to the end consumer in terms of higher prices," said Jonathan Ernest, a professor of economics.
That means Americans may soon pay more for electronics and appliances imported from China, shoes and clothing from Vietnam and India, and wine from Italy and France.
But that’s just the tip of the iceberg, says Investopedia's editor-in-chief Caleb Silver.
"Just about everything we spend money on, you can expect higher prices," Silver said.
So your next couch could cost more too. The U.S. imported more than 32 billion dollars worth of furniture in 2023.
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The Trump administration says the tariffs will spark more domestic production of goods. But some products can’t be made here.
Joel Haimsohn owns a furniture store in San Diego.
"The desire for Italian-made, German-made etc. products — that will never be perfectly recreated by the American manufacturer," Haimsohn said.
It’s impossible to calculate the exact impact tariffs will have on consumers, but Americans were already wary — even before Wednesday's announcement. A consumer confidence survey out last week hit a 12-year low.
