Tariffs and your wallet: What Americans can expect if prices begin to rise

More chaos on Wall Street

It's been another day of chaos on Wall Street so far. The Dow, NASDAQ, and S&P 500 are all currently down. The White House is defending President Trump's aggressive tariff plan.

ATLANTA - As President Trump rolls out a sweeping new round of tariffs on imports from key trade partners like China, Mexico, and Canada, many Americans are bracing for the financial hit. The anxiety isn’t limited to consumers — markets also reacted sharply, with the S&P 500 dropping 3.8% and the Dow Jones plunging 1,200 points Monday morning.

Despite assurances from the president — who referred to the tariffs as "medicine" for the U.S. economy and insisted via Truth Social that "there is NO INFLATION" — economic experts and everyday Americans are deeply concerned. From grocery bills to gas prices, household staples are poised to get more expensive in the coming weeks if the tariffs are implemented.

What is a tariff?

When a company brings products into the United States from overseas, it often has to pay an added fee known as a tariff — essentially a tax imposed by the federal government on imported goods.

These charges are collected from the importer, not the foreign manufacturer. So if a retailer like Walmart brings in a pair of shoes from Vietnam that cost $10, and that product is subject to a 46% tariff, Walmart must pay $4.60 in duty to the U.S. government.

How does that extra cost affect shoppers?

The retailer has a few options. It might pressure the supplier to accept a lower price to help offset the tariff. It could absorb the cost itself, reducing its profit on each pair of shoes. It could pass the increase along to consumers by raising the retail price. Or it might use a mix of strategies to manage the financial hit.

Ultimately, though, higher tariffs can ripple through the supply chain — and that often means higher prices at the checkout counter.

What is the current status of the tariffs?

President Trump revealed his tariff plan last week. On Saturday, April 5, a 10% baseline rate for the world went into effect.

On Wednesday, April 9, much higher tariffs are expected to go into effect for dozens of countries. Click here to see a chart.

As of Tuesday morning, many countries are trying to negotiate with the president. President Trump claims that every country has called. However, others appear to be fighting back. Here is a look at some actions taken by various countries so far, according to New York Times and FOX Business.

Argentina

Have already met with the White House. Hope to come to an acceptable free trade agreement soon.

China

Imposed 34% tariffs on all U.S. products, matching U.S. tariffs.
Banned 11 American companies from operating in China.
Halted chicken imports from five major U.S. agricultural exporters.

European Union

Announced counter-tariffs on U.S. goods (e.g., whiskey, motorcycles, women’s clothing).
Considering new trade barriers on services targeting Big Tech and Wall Street.
Proposed "zero-for-zero" tariffs on cars and industrial goods.

Canada

Condemned U.S. trade actions
Retaliated with tariffs on $20 billion of U.S. goods after earlier 25% steel/aluminum duties.

Japan

Trying to negotiate, has few options to retaliate.

Malaysia

Do not plan to retaliate. Trade ministry says it wants to actively engage with the U.S. to find a solution.

Mexico

Took action to avoid tariffs, extraditing cartel leaders and deploying troops to drug labs and the U.S. border. Economic minister traveling to Washington in early April to hold tariff negotiations.

United Kingdom

Tried to strengthen U.S. tiesbut still affected by Trump’s tariffs.

South Korea

Formed an emergency task force.
Sending its trade minister to Washington for talks.

Vietnam

Offered to eliminate tariffs on U.S. exports in return for reciprocal action.

Australia

Declined to retaliate; PM Albanese warned against a "race to the bottom."

If the scheduled tariffs go into effect, here's a look at what could happen.

Immediate Impacts: Gasoline and Oil

What we know:

In metro Atlanta, gas prices have already climbed 11.7 cents in just a week, now averaging $3.08 per gallon, according to GasBuddy. While that's still lower than a year ago, consumers are feeling the pinch. And while crude oil prices are currently low — dropping to $61 per barrel, the lowest in four years — the effects of energy tariffs could soon reverse that trend.

New tariffs on energy imports include a 10% tariff on Canadian crude and a 25% tariff on Mexican crude, according to American Action Forum. These measures are expected to raise gas prices by 20 to 30 cents per gallon in the short term, particularly in regions like the Northeast and Midwest that rely heavily on Canadian oil.

Beyond the pump, heating oil and petrochemical-based products — from plastics to fertilizers — will also see cost increases, with impacts likely to ripple through manufacturing and household budgets alike.

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Food Costs Set to Rise

What they're saying:

Americans may soon feel sticker shock in grocery aisles as well, according to PBS.org. The U.S. imports large volumes of fresh produce, fish, and food ingredients — much of which is now subject to higher tariffs:

China: Tariffs impact imports of garlic, apple juice, and oils. China supplies 80% of the world’s garlic and two-thirds of U.S. apple juice.

Mexico: Supplies about half of U.S.-imported vegetables and 40% of imported fruits. Expect higher prices on avocados, strawberries, and tomatoes.

Canada: A major exporter of meat, seafood, and processed foods — including 58% of the aluminum used in beverage cans. Expect rising costs on pork, beef, soft drinks, and canned goods.

Staples like tea, coffee, wine, and cheese are also affected. Imported coffee from Brazil and Colombia will be hit with a 10% tariff. European wines and olive oils face increases of up to 20%, while gourmet cheeses from Italy and France could become luxury items.

Frozen fruits, dairy products, and snack foods are also on the list. As grocery inventories turn over quickly, these price hikes could appear on shelves within days or weeks.

Tariffs and groceries

Many people are wondering about possible impact of tariffs on groceries. Experts say there is no reason to panic buy at this time. Instead, focus on strategically budgeting to help you get though IF anything happens.

Big-Ticket Items: Vehicles, Appliances, and Clothing

By the numbers:

Consumers eyeing big purchases may want to act quickly. A 25% tariff on imported vehicles and parts could drive up prices by $6,000 to $20,000, depending on the make and model. Even U.S.-assembled cars will become more expensive due to increased costs for imported parts. Additionally, the cost of car insurance could also go up, according to AARP.org.

Major retailers like Nike, Gap, and Walmart are also signaling that apparel and footwear prices could rise 10%–30%, especially on goods imported from China, Vietnam, and Bangladesh. Electronics, stereo equipment, cookware, toys, and home appliances are all expected to follow suit.

According to economists at Yale University, the average American household could face an additional $3,800 in expenses annually as a result of these tariffs.

Housing Market Under Pressure

What they're saying:

New tariffs on construction materials — like Canadian lumber, Mexican drywall, and Chinese steel — are expected to add between $7,500 and $10,000 to the cost of building a new home. This comes on top of already high mortgage rates and tight housing inventory.

The National Association of Home Builders warns that the added expense could deepen the country’s housing crisis by reducing the supply of affordable homes. Builders may delay or cancel projects, pushing more people into an already competitive rental market.

Jobs and Economic Ripple Effects

Why you should care:

While the Trump administration argues that tariffs will bring manufacturing back to U.S. soil, many economists say the short-term consequences could be job losses, not gains, according to Forbes. Businesses facing higher costs may be forced to cut staff or freeze hiring, especially in sectors like retail, logistics, and food service.

Moreover, rebuilding supply chains or opening new factories takes years — not months — meaning any benefit to domestic industry will take time to materialize.

Timing and What You Can Do Now

What you can do:

How quickly prices rise depends largely on inventory turnover. Perishable goods like produce and dairy will be impacted first, followed by household goods and electronics. Some tips for consumers:

Shop Smarter: Consider store brands, bulk purchases, and secondhand stores. Thrift stores, outlet malls, and discount retailers like Dollar General and Dollar Tree can help stretch your budget.
Quality lasts longer: When you do buy new clothes and shoes, buy quality items that will last years versus cheap items that will only last months.
Cheaper Alternatives Can Work Just Fine: When it comes to personal items like makeup, skincare products, accessories, and jewelry, you don’t always need to buy the most expensive option. In many cases, a more affordable product works just as well—or well enough to meet your needs without breaking the bank.
Cut Non-Essentials: Reducing spending on luxuries like daily coffee, takeout/junk food, premium alcohol, and subscription services can free up money for necessities.
Avoid Panic Buying: Stock up only on items you regularly use. Buying perishables you won’t use in time will only waste money.
Resist Pressure to Upgrade: Ask yourself if you really need the newest phone, car, or television. Most people don’t need a 98-inch TV or a top-tier smartphone.
Make Use of What You Have: Revisit the public library for books and games, cook more meals at home, and take advantage of free or low-cost community resources.

A Cultural Shift?

Dig deeper:

America’s post-WWII consumer culture — marked by status-driven purchases and the desire to "keep up with the Joneses" — is now clashing with an era of inflation and global uncertainty. Spending is no longer just about prosperity — it's increasingly about survival.

Psychologists and economists alike warn that many Americans spend more than they earn, often driven by social pressure and marketing. But in a time of rising tariffs and shrinking buying power, frugality may become a form of resilience — and even empowerment.

From sunglasses to seafood, from SUVs to soda cans, nearly every aisle of American life is touched by global trade. With tariffs now reshaping the cost of everyday goods, now may be the time to revisit what’s necessary — and what’s just noise.

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