The new standard for American prices on foreign products begins at 15%. Even when President Trump seeks to forge new business conditions with JapanTHE European Union And other global economic partners, he has been speaking for prices at their highest level for decades.
Speaking at a summit of the AI Trump said Wednesday, “we will have a simple and simple rate between 15% and 50%”, conditioning the lower rate on countries opening their savings in the United States
The White House said that highly higher prices could take effect on dozens of countries from August 1 unless they don’t give new commercial transactions. The Trump administration has a separate negotiation calendar with China, which Facing a deadline of August 12 For an agreement.
While these new rules of international trade are taking shape, companies in a range of industries point out that higher prices result in higher operational costs – and higher prices for consumers.
For example, Nestlé said on Thursday that she was considering hiking prices for candy bars and other products, because prices threatened to eat in the beneficiary of the food company. The same day, the Italian fashion brand Moncler said it had already increased prices so that its clothes compensate for additional costs linked to prices. And General Electric said this week that proposed that the American prices, if they would take effect, would cost the company around $ 500 million in 2025, noting that it would evolve to compensate for these taxes by “cost controls and pricing actions”.
Orange Juice’s importer Johanna Foods went further, this week filed a complaint against the Trump administration on his proposed 50% price on BrazilWhich, according to New Jersey, would seriously injure its business and force it to increase prices of products up to 25%.
The White House disputes that higher American rates will increase costs for businesses and consumers.
“The administration has constantly argued that the cost of prices will be borne by foreign exporters who rely on access to the American economy, the largest and cheaper consumer market in the world,” said White House spokesman Kush Desai, CBS Moneywatch in a statement.
Desai also underlined a recent analysis By the Council of White House economic advisers who, according to him, show that the prices of imports decrease this year.
Non -“instant” price increases
Economists warn that consumers should prepare higher prices on a range of goods, leather products and clothing for electronics and cars, later this year.
“Until now, there have only been limited Passthrouses of the prices at the consumer final prices, but we are still expecting the impact gradually to the second half of this year,” said Paul Ashworth, chief economist in North America with Capital Economics, Investors in a research note. “Now that the Trump administration concludes agreements that would see the rate rate faced with most business partners adjusting between 15% and 20%, with even higher prices on Chinese imports, we suspect that retailers will be forced to finally increase the prices paid by consumers.”
Inflation at the beginning of 2025 remained fairly content. Indeed, many companies and consumers have accelerated their purchases of imported goods to avoid the risk of paying more if or when, new steep prices take effect.
Meanwhile, in the short term, highly higher prices are unlikely in all areas, according to commercial experts.
“When you open the hood of this, it will not be even in all categories of expenditure,” said Ernie Tedeschi, director of the LAB budget economy in Yale, to CBS Moneywatch. “These are categories of spending where we import more that will be more sensitive to prices.”
But in the longer term, an increase in the reference rate, coupled with higher samples from individual countries, should increase American prices by 2% in the next two years, according to a analysis of the Yale Budget Lab.
“It’s not an snapshot”, we wake up the next morning and the world is different, “added Tedeschi.
But as the new American pricing regime is integrated into global supply chains, certain categories of heavy products for imports could see particularly vivid price increases, he said. More specifically, leather shoes and handbags of foreign manufacturing, as well as clothes, could see prices increase by at least 40%, while the cost of electronics could jump more than 20%, according to the Yale Budget LAB.
