Tariffs Reach Highest Level Since 1934 Under Trump Plan

The U.S. is heading into tariff territory not seen since the Great Depression, with new trade measures from former President Donald Trump set to take effect August 7. The result? A potential price spike on everything from shoes and wine to furniture and electronics.

Under Trump’s newly ordered tariff regime, the average tax on imported goods will jump to 18.3%, the highest since 1934, according to Yale’s nonpartisan Budget Lab. The move targets 66 countries, the European Union, Taiwan, and even the Falkland Islands. Among the steepest penalties: 40% on imports from Laos, 39% on Swiss goods, and 30% on products from South Africa.

While some countries, such as Cambodia and Bangladesh, saw reduced tariffs after negotiations, the overall trade landscape remains tense. A 35% tariff on Canadian goods begins immediately, while action against China and Mexico is delayed pending talks. A 50% tax on imported aluminum and steel remains in place.

What This Means for You

The Budget Lab estimates the average U.S. household could lose around $2,400 in purchasing power due to higher prices, with a short-term 1.8% jump in inflation expected. Items already affected include:

• Eyewear: Ray-Ban maker EssilorLuxottica has raised prices.
• Wine: Expect up to 30% price hikes on European wines by September.
• Shoes and apparel: With 97% of clothing and shoes imported, costs are expected to rise 5–10% this fall.
• Furniture, electronics, and appliances: Many of which include foreign-made steel or aluminum, are already showing price upticks.

Industry Response

Retailers have largely absorbed tariff costs until now. “The new tariffs will impact merchandise in the coming weeks,” said David French of the National Retail Federation. Smaller businesses are especially concerned about staying afloat.

Matt Priest of the Footwear Distributors and Retailers of America warned that back-to-school prices are already climbing. And automakers, though slow to respond publicly, are feeling the pressure: General Motors expects to lose $4–5 billion this year due to tariff-related costs.

Trump has pitched these tariffs as a strategy to boost U.S. manufacturing and trade fairness. Some of the new trade deals do include specific wins—like the EU agreeing to buy $750 billion in American energy and Vietnam pledging $2 billion in U.S. agricultural goods. But experts say those victories may be short-lived, and some trade partners—particularly China—could shift away from U.S. markets in the long term.

Tariffs Reach Highest Level Since 1934 Under Trump Plan  was originally published on wolbbaltimore.com