Trade wars and the Everyday Consumer: Understanding the Hidden Impacts
- Vardui Chtrkyan
- Jan 11
- 2 min read
By: Ixli Hidalgo
There is a very small percentage of consumer products that are immune to the impact of the new tariffs on goods imported into the United States. This trade war has and will continue to affect everyday consumer products as it continues to unravel. A trade war is when two or more countries repeatedly impose trade barriers such as tariffs against each other's goods. Trade wars may occur due to disagreements over trade practices, efforts to protect domestic industries, or to gain economic or political advantage. Trade wars affect everyday consumer products such as phones and clothing through price changes, manufacturing, supply chains, and availability (Jessica Dickler 2025).
A tariff is a tax imposed by a government on goods from another country. The US has placed tariffs on many countries, such as China, Canada, Mexico, India, Brazil, and several South Asian and Latin American nations. Certain countries and tariff rates change depending on the product and the administration's trade policies. These tariffs have been imposed by February1, 2025 (Avalara 2025). These connected global supply chains make consumer goods vulnerable to trade disputes since so many consumer products take supplies from many different countries to make. This means that if materials and products from other countries that have tariffs implied are needed to make consumer goods, those tariffs will increase the cost for companies to import materials or finished products. This then leads to increased production and import costs, leading to higher retail prices for consumers.
The higher cost of production may lead to some companies trying other ways to reduce costs, such as diversifying suppliers, shifting production (Nearshoring/Reshoring), and buying American. Diversifying suppliers is when businesses reduce their reliance on one single country by sourcing materials from different regions to lighten the pile of tariffs. Shifting production, also known as Nearshoring and Reshoring, is when companies move their manufacturing facilities to countries with lower tariffs. Buying American is when companies rely more on domestic suppliers and products to avoid tariffs altogether. These strategies can lead to an increase in jobs for American suppliers, while jobs for suppliers from other countries may see a decrease in job opportunities. Prices may change any day since tariffs often change, but as long as there are still tariffs imposed, limited availability in products or changes in product quality may affect everyday buyers. Consumers can respond by buying less, switching brands, waiting for sales, or choosing refurbished products.
Trade wars affect everyday products through pricing, supply chain adjustments, innovation, and consumer experiences. In order to reach product stability, we need global economic cooperation. The more the consumer knows and understands about the effects of trade wars, the better judgment they can give when buying products.
Works Cited
How a trade war could impact the price of clothing: ‘Ultimately no one wins,’ expert says (14 April 2025). (2025, April 15). CNBC. https://www.cnbc.com/2025/04/14/how-a-trade-war-could-impact-the-price-of-clothing.html
Overview and table of U.S. tariffs by country- Avalara. https://www.avalara.com/us/en/learn/guides/us-tariffs-by-country.html
Tariffs 101: What are they and how do they work? (2025, March 19). Oxford Economics https://www.oxfordeconomics.com/resource/tariffs-101-what-are-they-and-how-do-they-work/
How US Companies Are Trying To Protect You From Tariffs (2025, November 11) Yahoo Finance
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