US President Donald Trump has launched a new trade war with his Liberation Day tariffs, applying worldwide levies that will significantly boost consumer prices in the US The broad 10% tariff on imports affects all countries, while major trading partners such as the European Union, China, and India are subject to even higher rates. Consequently, common items such as automobiles, coffee, apparel, and electronics will have more expensive price tags. Experts predict inflation surges, as businesses and consumers prepare for economic damage.
Increased Car Costs: From Luxury Sedans to Commuter SUVs
Trump has put a huge 25% tariff on every car import and part, including from Canada and Mexico. Car prices would increase by as much as $4,000 to $10,000, particularly for luxury brands such as BMW, Audi, and Mercedes-Benz. Even US assembled cars will be more expensive with higher-priced imported parts.
Car dealers warned that consumers will be unable to pay for these increases. David Kelleher, President of David Auto Group, said that a $30,000 car could cost $37,500, increasing monthly payments by $175. “Our customers are middle-class Americans—they can’t afford this jump,” he said.
Clothes, Coffee, and Gadgets: Everyday Costs Soar
Fashion will suffer significantly, as Trump imposes 34% tariffs on imports from China, 46% on Vietnam, and 37% on Bangladesh—three of the biggest US apparel-exporting nations. Already, big brands such as Nike and Ralph Lauren have watched stock prices decline. The United States Fashion Industry Association labeled the tariffs “a blow to American brands and retailers.
At the same time, coffee aficionados will feel the pain. The United States imports 80% of its coffee beans from Latin America, but now Brazil and Colombia are subject to a 10% tariff. “We can’t switch to domestic coffee—there’s no domestic production,” said Mark Wain of Caffe Luxxe. Likewise, French and Italian wine will become more expensive, with new tariffs of 20% on EU products.
Apple products will also become more expensive, as China, Vietnam, and India—major manufacturing bases—will be hit with high tariffs. Apple’s stock fell close to 6% upon the announcement.
Ultimate Impact: An Expensive Bet for Americans?
With tariffs applying to Swiss watches, domestic furniture, and even deserted islands, Liberation Day tariffs look like a political gesture rather than an economic measure. They may restore American jobs, Trump insists, but experts predict they will primarily fall on consumers. But is this economic “independence” going to be worth the added expenses?