Your Wallet's Warning: Tariffs Are Making Everyday Products Pricier

Name: Your Wallet's Warning: Tariffs Are Making Everyday Products Pricier
Uploaded: 2025-07-16T22:29:32+00:00
Duration: 4 min 22 s
Channel: Money Explainers

Money Explainers

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See how President Trump's tariffs are directly impacting the prices of your favorite products, from toys to appliances. Your wallet is feeling the pinch.
The latest CPI report confirms it: Trump's tariffs are driving up costs. Learn which goods are getting more expensive.
Don't miss this breakdown of how import tariffs are pushing up prices on everything from tech to sporting goods. Understand the real impact on consumers.
#CostOfGoods #InflationAlert #TariffImpact

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00:00All these products are getting more expensive due to Trump's tariffs.

00:04The significant tariffs imposed by President Trump on most goods imported into the United

00:09States have been gradually making their impact felt in consumers' pockets.

00:13While economists initially cautioned that tariff-related price hikes wouldn't come quickly

00:18nor in one fell swoop, and would likely start to affect consumers more as the year progressed.

00:24Recent data indicates that this shift is now underway.

00:26This delayed impact is largely attributed to what has been termed an inventory story.

00:32Businesses, particularly large retailers, performed an excellent job of managing their

00:37inventories, accumulating about three months' worth of extra stock before the bulk of the

00:42tariff hikes were implemented in April.

00:45The strategy was to sell these pre-tariff tariff-free goods first.

00:49However, this situation has changed as businesses eventually will run out of inventory or run

00:54down their inventory, and have to bring in more items with the tariff costs.

00:59The Consumer Price Index.

01:01Report for June marked a turning point, indicating that the tariffs are starting to bite.

01:06Although overall inflation had remained relatively subdued in preceding months, due to factors

01:11such as disinflation in housing and other services, and falling gas and travel prices, the cost of

01:17goods has now begun to rise.

01:18Here are seven categories of products where the effect of President Trump's tariffs is

01:24already becoming noticeable.

01:26Toys.

01:27For the second consecutive month in June, toy prices rose by 1.4%.

01:32This back-to-back jump has only been observed during periods of abnormally high inflation,

01:38such as in 2022 and 1980.

01:40The United States imports approximately 80% of its toys from China, and the CEO of Hasbro

01:46has already warned of potential future price increases.

01:50Appliances.

01:51Prices for appliances like dryers, washing machines, refrigerators, ovens and garbage disposals

01:56leaped 1.9% in June.

02:00This was the largest monthly increase in appliance prices since August 2020.

02:05This category has been affected by the Trump administration's extension of 50%.

02:09Tariffs on steel and aluminum to derivative products, which include these consumer appliances,

02:16computers, peripherals, and smart home assistants.

02:19Prices in this category increased for the third consecutive month, rising 1.4% in June,

02:25marking the highest monthly increase since January 2024.

02:30While President Trump granted some exemptions for certain, smartphones, computers, and electronics,

02:35these products, and their components, remain exposed to the higher base tariff on Chinese imports.

02:41Sporting goods.

02:42The pace of price hikes accelerated, with a 1.4% increase in June, up from 0.3% in May.

02:50This June increase is the largest in 18 months.

02:53Tools, hardware, and supplies.

02:55After falling for much of 2023 and 2024, prices in this category rose 0.7%.

03:02In June, marking the fifth straight month of increases.

03:05Video equipment.

03:06Prices in this category surged a record 4.5% in June, after rising 1% in May.

03:13This is notable as this category has historically experienced more deflation than inflation,

03:19since the Bureau of Labor Statistics began tracking it in 1998 windows and floor.

03:24Coverings and other linens, prices in this category experienced a record high increase of 4.2%.

03:31In June, following a 0.3% rise from May to April,

03:36the considerable shrinkage of the U.S. textile industry in recent decades

03:40has resulted in a high reliance on imported linens.

03:43Economists, such as Heather Long, chief economist at Navy Federal Credit Union,

03:48caution that these are just the early stages and that it feels like inning no one.

03:52Of what will likely be an increase in prices for more and more items.

03:57While President Trump has cheered on low consumer prices,

04:00and White House officials, including Treasury Secretary Scott Besant,

04:04have downplayed the overall effect of tariffs on inflation.

04:07The June CPI data suggests that Federal Reserve officials are likely to adopt a wait-and-see approach

04:13regarding further interest rate cuts.

04:15Fed Chair Jerome Powell has publicly stated that without the tariffs,

04:19the Fed would have already lowered rates this year.

04:21Money expenses.

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