Trump Unleashes New Wave of Tariffs, but Consumers Might Not Notice
U.S. consumers awoke July 24 to news that President Donald Trump had imposed new tariffs ranging from 10% to 12.5% on imports from more than 80 countries.
The new tariffs took effect just as an old one expired: the global 10% import tax Trump imposed in February after the Supreme Court struck down the tariffs he had levied in 2025.
Americans may have forgotten all about the 10% tariff, economists said. It was a relatively small tax. And lately, consumers have been focused more on soaring energy prices than tariffs.
Will consumers feel the new tariffs any more than the old one? What products are exempt?
Here’s a quick rundown.
How Broad Are the New Tariffs?
In geographical terms, they are nearly universal. According to a federal fact sheet, the new tariffs apply to 60 American trade partners. Collectively, those countries produce more than 99% of U.S. imports. But there are many exemptions, spelled out below.
What Is the New Tariff Rate?
The new tariffs are either 10% or 12.5%. The size of the tariff depends on the trade partner’s stance on forced labor, as judged by the Trump administration.
The lower, 10% tariff applies to countries that have committed to banning imports made with forced labor but are not effectively enforcing the bans, the administration said. Those partners include Canada, India, Mexico and the United Kingdom.
The higher, 12.5% tariff applies to countries that have not banned imports made with forced labor, according to the administration. Those countries include China and Vietnam.
How Did Those Countries Respond to the New Tariffs?
The action drew strong protests from some trade partners. China said it opposed all unilateral tariffs. Australia and Brazil described the new tariffs as unjustified and said they would seek to have them removed, while Norway said there was “no basis” for them.
What Products Are Exempt From the Tariffs?
Many products are exempt. Tariff-free items include oil and gas, fertilizer and a broad range of imported food products, including many types of meats, nuts, seasonal fruits and spices. Many tech products are exempt, as is some medical equipment.
“There’s a gazillion exemptions to this,” said James Cox, managing partner for Harris Financial Group. “It really is limited in scope, when it comes right down to it.”
Consumers are likely to feel the greatest impact from the tariffs on clothing and other textiles, Cox said.
Weren’t We Already Paying Tariffs?
Yes. The new tariffs replace Trump’s temporary, 10% global tariff, which expired at 12:01 a.m. ET on July 24. Trump enacted the temporary tariff after the Supreme Court struck down tariffs he had imposed in 2025.
“This new set of tariffs is just a continuation of the old set of tariffs, under a new authority,” Cox said.
Have the Tariff Exemptions Changed?
Not much, although more items are exempt under the new tariffs.
“The exemptions, broadly speaking, are the same as before,” said Bernard Yaros, lead U.S. economist at Oxford Economics. “It’s really food, energy. Things that really matter the most for consumers spending and their pocketbooks.”
So, What Is the Impact of the New Tariffs?
Limited.
For many trade partners, the effective tariff rate ticked up from 10% to 12.5% overnight. However, the new tariffs have more exemptions than the old ones, economists said.
With one tariff policy lapsing and another taking hold, the overall average tariff rate for American imports stands at 11.1%, according to the Budget Lab at Yale Law School. Under the old tariffs, the average rate was slightly higher.
“This is a fairly small change,” said Ryan Nunn, director of research at the Budget Lab.
And so, on balance, the new tariffs should cost American consumers a bit less than the old ones.
“It’s definitely fewer tariffs,” Cox said.
Contributing: Reuters
Reporting by Daniel de Visé, USA TODAY / USA TODAY
USA TODAY Network via Reuters Connect
