Ever since Trump has waged a trade war with his new tariffs, everyone has been concerned about the prices going up and the stock market coming down. We saw a drastic impact on the stock market, with a loss of trillions in a few days. It’s not just the stock market that will take the hit but the essential goods too. Basic goods will have a higher price due to the US’s import tariffs and retaliation from other countries.
Trump has declared a baseline tax hike of 10%, which can go as high as 60%. Besides, some economists believe that Trump may be purposely crashing the economy so he can increase the interest rates. He has denied the speculations; however, he may be after a J-curve reset.
The tariffs will be hard on low-income families with an increase in the prices of groceries and clothes. Experts have warned people to stock up on grocery items before the new prices are applied. If someone is planning to buy a car or appliances such as a washer and dryer, it’s the best time to get it before the price hike.
An associate professor at the Economics Division at Babson College warns everyone, “It is going to affect everything in the economy.” He says there will be an immediate price increase, which will be passed down to the consumers when the store owners have to stock up on new products.
This is the largest tax increase since WW2. Did any of you vote for that?
Hear that MAGA? Your grocery bill will go up at least 10%. Some items will have a higher tariff.
I thought he promised to lower grocery prices? #TrumpTariffs#DemVoice1 #wtpBLUE #DemsUnited pic.twitter.com/lTILUwZlIE— Terri Loves America 🟧💙💔🟦 (@ProudAFAmerican) April 3, 2025
Low-income families will suffer the most while putting food on their table and meeting their family requirements. The disparity between low-income homes will only increase as they’ll be forced to pay more, even for everyday items.
Experts warn that these tariffs could make inequities all the worse. Low-income families in particular, will feel the cost rise of key necessities, like food and energy. Just a slight increase in the price will impact low-income people. Common items like coffee, olive oil, avocados, bananas, rice and beef will get pricier.
President Trump has repeatedly emphasized that the tariffs he’s announced will be implemented and that new ones are coming.
Consumers may start to see price hikes at the grocery store within weeks, especially for some of the least shelf-stable items. https://t.co/ABm6vzkdgz
— NBC News (@NBCNews) March 16, 2025
While Trump claims to rebalance the economy with higher tariffs, the American market will suffer a lot. The tax on imported items will get high as other countries will declare reciprocal tariffs. For instance, China has already decided to put up to 15% on agricultural goods.
The perishable items will take the first hit as they will be restocked in the supermarket aisles the soonest. After this, goods such as electronics, footwear, furniture, and clothes will be hiked. The predicted price hike can be up to 17%. According to John Breyault, vice president at the National Consumers League, a household that makes the lowest income will pay almost $980 more to get the same things.
