If Trump imposes additional tariffs, it may cause domestic prices to rise.

The Los Angeles Times analyzed that if tariffs are imposed, American companies must pay taxes to the US government on the goods they purchase from foreign manufacturers, and they will usually pass the additional costs incurred on to the selling price, causing a sharp increase in commodity prices, which will ultimately be paid by consumers.

It is expected that the prices of clothing, automobiles, electronic products and agricultural products will rise, and consumers will be the first to bear the brunt.

If the tariffs is really be imposed additionally, it is very likely that consumer goods will be comprehensively and greatly affected:

1. Automobiles and automobile parts: Mexico surpassed China to become the largest trading partner of U.S. 88% of vehicles manufactured in Mexico are exported, which 76% are sold to the U.S.
2. Toys: Data from the National Retail Federation shows that in 2023, toys made in China accounted for 77% of all toy imports, about 25 times the total imports from the second largest supplier, Mexico. The market share of domestic toy manufacturers in the U.S is even less than 1%.
3. Clothing: The National Retail Federation pointed out that under the new tas system, clothing prices may rise by as much as 20.6%, forcing consumers to cut clothing spending.
4. Groceries: Director of the UCLA Anderson Forecast Center, Jerry Nickelsburg, said that the vast majority of agricultural products imported into the U.S., such as avocados, cucumberts, potatoes and mushrooms, come from Mexico and Canada.
5. Electonic Products: U.S. imported computer and other electronic products worth a total of US$76 billion from Mexico in 2023, more than a quarter of China`s exports to the U.S. were electronic equipment.

*Photo reference: https://www.pricepedia.it/en/magazine/article/2024/11/22/effects-of-us-tariffs-on-global-commodity-prices/