American consumers are bracing for higher costs on everyday goods after the White House unveiled a new global tariff regime that pushes the average U.S. tariff rate to 18.3% — the steepest in nearly a century.
The Yale Budget Lab, in a Friday report, projected that the tariffs will reduce median household income by $2,200 annually while driving consumer prices up across key sectors. The new measures take effect Aug. 7.
Food, Cars, Clothing Among Hardest Hit
According to the study, the tariffs will ripple through nearly every household budget:
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Food prices are expected to rise 3.3%, with fresh produce surging 7%.
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Motor vehicles and parts could climb 12%.
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Computers may spike 18.2%.
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Electrical equipment faces a 25.5% increase.
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Clothing prices are projected to soar by 38%.
In the short term, overall consumer prices are set to increase 1.8%, assuming companies pass on the full costs to buyers and the Federal Reserve does not intervene. Long-term impacts may taper slightly as consumers adjust spending habits.
