US consumers on edge ahead of Trump’s tariff deadline: ‘it’s a bad time’
Many Americans are already worn down by years of rising prices – and a looming wave of tariff hikes is set to make things worse
Kathleen Harrison, the owner of an arts-and-crafts shop in the San Francisco Bay Area, is dreading what might happen if the US government raises tariffs on a slew of Asian economies later this summer.
The 33-year-old is already under pressure as it is. The cost of key supplies such as paper stock has doubled this year due to a surge in demand, forcing her to hunt down bargains to keep her prices stable.
Now, she worries that higher duties on imports from China and other major exporters will squeeze her margins even more in late 2025.
“Just the cost of everything is going up,” she said as she laid out a display of stickers, mini jigsaw puzzles and bookmarks outside her store in the suburb of Alameda.
American businesses have largely managed to swallow the cost of higher tariffs since Trump launched his global trade war in April, but that is almost certain to change if the US goes ahead with threatened duty hikes on China and other major trading partners over the next few weeks.
There is a significant chance of higher prices in the second half of 2025, especially with this approach of pushing tariffs back towards Liberation Day levels
“I would say there is a significant chance of higher prices in the second half, especially with this broad-based approach of pushing tariffs back towards the initial Liberation Day announcement levels,” said James Knightley, chief international economist for ING Financial Markets in New York.