While President Donald Trump says the Aug. 1 return of his reciprocal tariffs on trade partners is good news, the average American is positioned to see their costs rise for a variety of everyday goods once they take effect.
With recent news indicating that tariffs on goods from the European Union will rise from 1.2% to 15%, the direct impact for most Americans will be another increase in the cost of goods. That’s on top of existing tariffs on many countries’ goods that start at 10% on foreign goods in the United States, in place since April.
Tariffs are paid upon import or export of an item and the vast majority of companies and businesses pass that cost along to consumers. Axios reported in early July that tariffs add more than $80 billion in new costs for mid-sized companies in the United States, an impact as high as 3% of the companies’ overall payroll costs.
The Yale University Budget Lab reported that tariffs already in effect will cost the average household $2,400 in 2025 alone. Shoes and apparel costs will increase 18% and 17% over years with the tariffs in place, the lab continued. Unemployment is expected to increase significantly by the end of 2026 as well due to high costs dragging down the labor market.
Reuters reported those high costs are already on their way. Proctor and Gamble, a major producer of household products, announced that, due to the tariffs, it would be increasing the costs of a quarter of its products. That means paper towels, laundry detergent and other consumer mainstays will jump at least 5%.
Some businesses worked to stock up on products before tariffs hit, the news source added, but as those stores dwindle and new imports are needed, inflation is slated to rise. More price hikes are expected to be seen in the later months of the year and early 2026.
No matter the sector of the economy, costs will rise, more reports indicated. PBS reported that the manufacturing sector, a significant slice of the state and national economy, will see costs grow by 2 to 4.5%, which in addition to higher prices could lead to wage freezes, layoffs and even plant closures.
The New York Times noted the new 15% tariff on items from the European Union is likely to lead to price increases for some medicines, which could have an inflationary impact on out-of-pocket prescription costs and health insurance premiums.
