The imposition of trade tariffs by the U.S. government under President Donald Trump will raise tariff levels in the country to their highest point in a century and increase consumer prices on average by 2.3%. Footwear and clothing could see hikes of up to 17%.
According to the Yale University Budget Lab, Trump’s trade policies since taking office will boost annual household spending by $3,800 on average in the U.S., or approximately 6,300 Mexican pesos monthly—a 76,000-peso yearly increase.
Key Points of Impact
- Base Tariff Rate: 10% for all imports, with higher rates for over 60 countries.
- Affected Products (Price Hikes):
- Leather goods: +18.3%
- Clothing: +16.9%
- Metal products: +12.3%
- Wool and silk: +10.9%
- Processed rice: +10.3%
- Electrical equipment: +10.0%
- Textiles: +9.6%
- Vehicles & auto parts: +8.4%
- Machinery in general: +6.6%
- Iron products: +6.5%
- These tariffs primarily affect common household items, increasing everyday costs.
Highest Levels in Over a Century
The average effective tariff rate in the U.S. will reach 22.5%, its highest since 1909, marking a significant shift from free-trade trends of recent decades.
Economic forecasts suggest a potential slowdown: a 0.9% decrease in GDP growth for the U.S. in 2025 and 0.1% in 2026, along with possible retaliatory measures from trading partners like Canada and China, adding global economic uncertainty.
