The recent implementation of tariffs by former President Donald Trump is expected to have a noticeable impact on consumer goods, particularly in the automotive and grocery sectors. As reported by CBS Austin, tariffs imposed by the Trump administration are slated to raise the price of cars soon, although not immediately. Kelley Blue Book's senior editor, Brian Moody, remarked in an interview, "If I was a consumer that was already in the position of buying a new car or even a used car, like let’s just say that you are already on that road. I don’t see how waiting can help."
According to the same report, since automobile components are sourced globally, the tariffs will affect different brands and models in varying degrees. Moody emphasized, "More than likely, automakers are going to try to spread any tariffs they incur across multiple vehicles in their line because most automakers duelsome cars here in the us and some cars overseas." With the used vehicle market not offering any relief, consumers could face a daunting market for both new and pre-owned cars.
CBS News has taken the initiative to track the climbing costs of goods most affected by the tariffs. Price indices for new and used vehicles show a stark rise, with an example small SUV that cost $30,000 in 2020 costing over $36,000 last month. This data is symptomatic of broader inflation and supply chain issues that have been complicating the economy since the COVID pandemic.
Aside from vehicles, grocery items have also seen an uptick in prices, with many common fruits and vegetables being imported from countries now facing tariffs. These costs, as CBS News reports, are trickling down to shop aisles, where consumers see the tariffs reflected in the final prices. Congressman Lloyd Doggett, who represents Austin, expressed his opposition to the tariffs, noting, "Even Mike Pence, the former Republican vice president, said it’s the biggest tax increase in history." Doggett told CBS Austin, "We will all pay more because while there’s a major Toyota facility in San Antonio building pickup trucks, many of the parts that they use are coming from Japan, and we will pay more for that."
Construction and manufacturing are not immune to these changes, with the cost of materials such as steel, aluminum, and lumber rising considerably. The tariffs' far-reaching effects thus span from the construction site to the supermarket checkout, painting a picture of an economy under the unique strains that tariffs impart on both the macroeconomic scale and the everyday lives of consumers.
