New tariffs introduced earlier this year are rippling through the U.S. economy, pushing consumer prices higher and reshaping spending behavior. According to CNBC, the average American household will face an extra $2,300 in costs during 2025, as the national tariff rate climbs to 17.4% — the highest since 1935.
Inflation Pressures Continue
While inflation had been easing in recent months, the latest data shows prices ticking back up:
- Overall consumer prices rose 2.9% in August from a year ago.
- Core inflation, which excludes food and energy, is up 3.1% year-over-year.
Everyday Items See Outsized Increases
Tariffs are hitting categories that U.S. households rely on daily, especially where imports dominate supply.
- Coffee prices have jumped 9.8% since April, compared to a long-term average of just 0.1% during the same months. With Brazil, Vietnam, and Indonesia facing steep new tariffs, costs are expected to rise further.
- Bananas, a category historically known for price stability, rose 4.9% since April. Virtually all U.S. supply comes from Central and South America, leaving the market directly exposed.
- Consumers are already adapting—buying more private label products, cutting back-to-school spending, and planning to trim holiday budgets.
Why It Matters for Retailers and Brands
These changes put more pressure on household spending, and retailers will need to adjust. Expect to see:
- Increased private label growth as shoppers seek affordability.
- Tighter spending in seasonal categories like holiday and back-to-school.
- Heightened price sensitivity across everyday essentials.
The Takeaway
Tariffs are proving to be a powerful driver of inflation, filtering through supply chains and raising costs on staples that consumers can’t easily avoid. For retailers and brands, understanding these dynamics is key to staying competitive and meeting shoppers where they are.
Read the full CNBC article here: https://www.cnbc.com/2025/09/13/charts-how-much-costs-have-risen-since-trump-tariffs-went-into-effect.html
