President Donald Trump's sweeping tariff program took effect right after midnight on Thursday, shifting global trade that will likely result in higher prices for many goods for Americans.
The tax rate differs for each country, but consumers will face an overall average effective tariff rate of 18.3%, the highest since 1934, according to analysis from the Yale Budget Lab think tank. After consumption shifts, the average tariff rate will be 17.3%, the highest since 1935, the think tank predicted.
“It’s midnight! Billions of dollars in tariffs are now flowing into the United States of America!” Trump wrote on Truth Social.
The price on many goods will rise, including on foreign cars, electronics, furniture and toys.
The tariffs disproportionately affect clothing and textiles, with consumers likely facing 40% higher shoe prices and 38% higher apparel prices in the short-run. Shoes and apparel prices stay 19% and 17% higher in the long-run respectively, according to Budget Lab.
In New York, consumers and businesses would need to pay nearly $33 billion in additional import taxes to continue buying the same amount of foreign goods with the tariffs rates announced as of July 30, according to figures from Governor Kahty Hochul's office. This is nearly $4,200 in additional federal taxes per household in New York.
“As Trump rings in his August 7 tariff deadline, everyday New Yorkers know today is no cause for celebration," Hochul said in a statement. "Consumers are bearing the brunt of his reckless and costly trade war, squeezing families’ wallets from the produce section to the back-to-school aisle.”
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