Phones, Shoes, Toys, Cars among other things bound to get costlier for Americans.
The Reciprocal Tariffs that US Administration levied in April against most countries, continue to be a major pain point for most of the Importers in the US. While the Reciprocal Tariffs are on a 90-day pause, the additional Tarriff of 10% (In addition to existing Duties) still applies to 90+ counties.
Read also: How Tariff Policies Are Impacting U.S. Exporters in 2025
The Federal Reserve said last week that tariffs have led to a 0.3% increase in prices this year already. Some companies are increasing the prices of all of their products; Others are hiking targeted items in their catalogs. Walmart has just announced a potential price hike on the everyday items. Even though Tariffs against China are currently reduced to 30%, they are still much higher than what importers are comfortable with. While most importers are still grappling with the impact of this additional 10%, their anxiety remains as it is yet to be seen if the additional reciprocal tariff pause will be revoked or extended by July. While the trade war continues, let us look at what products are likely to be costlier for American people in the medium term.
Electronics (Computers, Mobile Phones, Televisions, Batteries)
In 2024, United States imported $140B of Computersbeing the 3rd most imported product with the main origins being: Mexico & China . Similarly, over 70% of Smartphones are imported from China, a significant portion of these being Apple iPhones. Apple Inc. is reportedly planning to replace all its sourcing of the iPhone for the US market from China to India in 2026, however while it takes time to diversify, the company indicated that the tariffs could raise the price by 17-18%.
Automobiles & Auto parts (Tires)
About 50% of new cars sold in the U.S. are imported & even domestic vehicles rely on foreign parts. The tariff affects brands like Toyota, BMW, Hyundai, and Volkswagen, as well as U.S. automakers that have International Supply Chains. Auto Component typically cross the US, Mexican and Canadian borders multiple times before a vehicle is completely assembled. Over 75% of the Tires are imported into the USA with Thailand & Mexico as leading Exporters. Large Tire maker ‘Sumitomo Rubber Industries, Ltd.’ Announced to increase prices for their tires in the US and Canada by up to 25% starting May 1, likely due to new US Section 232 automotive parts tariffs.
Ready-made Garments, Shoes & Toys
Ready Made Garments is a Labor-intensive industry, hence most of the manufacturing was moved to Asian countries like China, Vietnam, Bangladesh, India, Thailand. The United States is the largest single-country apparel importer in the world. Moreover, 80% of toys & 90% of the Shoes sold in the U.S are made Overseas, Mainly in China. With 145% duties on China, Garments, Shoes & Toys are likely to be pricier withing a few months. Leading Toy manufacturer, ‘Mattel’ already announced Price Increases on American Toys owing to recent tariffs.
Furniture
About 30% to 40% of furniture sold in the U.S. is manufactured in other countries like China and Vietnam, that is likely to get impacted.
In Summary
Most countries are now in negotiation with the US administration to lower the Reciprocal tariffs & the outcome is yet to be seen. If the trade deals are finalized by July 9 2025, then high reciprocal tariffs could be avoided. However, tariffs against China are still much higher than most countries & hence making it difficult for US importers that rely majorly on China to diversity quickly. In most cases however, for the goods mentioned above, price rises are inevitable.
Author Bio
Sanyukta Kulkarni, is a Senior Route Development Manager for Indian Subcontinent, based in USA. She has been working in the International Logistics Industry the last 18 years across India & USA. For the last 10 years, her Focus has been Building the Trade Corridor between India & USA and to Improve the Business Growth between India & USA Trade Corridor with DB Schenker.
