American consumers may soon bid farewell to the era of the $5 T-shirt. Experts warn that President Donald Trump’s recent tariffs are set to hit shoppers where it hurts—their wallets.
The United States imports over 98% of its clothing, and tariffs on these goods could lead to price increases of up to 65% for clothes and 87% for leather goods, according to data compiled by the Yale University Budget Lab. These tariffs disproportionately affect everyday items, meaning that basic wardrobe staples could soon become significantly more expensive.
The U.S. Chamber of Commerce has raised alarms about the potential impact on small businesses and the broader economy. In a letter to the White House, the Chamber warned of “irreparable harm” and urged for immediate tariff relief. “The Chamber requests the administration take immediate action to save America’s small businesses and stave off a recession,” the letter stated.
It’s not just clothing that’s at stake. A report commissioned by a U.S. pharmaceutical trade group and reviewed by Reuters reveals that a 25% tariff on pharmaceutical imports would increase drug costs by nearly $51 billion annually. This could boost U.S. drug prices by as much as 12.9% if the costs are passed on to consumers. The analysis, conducted by Ernst and Young, noted that in 2023, the U.S. imported $203 billion in pharmaceutical products, with 73% coming from European countries like Ireland, Germany, and Switzerland.
With total U.S. sales of finished pharmaceuticals reaching $393 billion that year, the stakes are high. The potential price hikes have not gone unnoticed by the public. A recent Reuters/Ipsos poll found that most Americans are bracing for higher prices on a wide range of consumer goods due to the new tariffs. Notably, 57% of respondents, including a quarter of those from Trump’s own Republican Party, said they opposed the tariffs.
As the trade tensions continue, American shoppers are left wondering how much more they’ll have to pay for everyday essentials. The possibility of saying goodbye to affordable clothing and other goods is becoming increasingly real.
