A shocking report from the Yale Budget Lab reveals that U.S. tariffs on imported goods have soared to 18.3% by July 31, 2025 — the highest rate since 1934. This historic spike is set to reshape the economic scene and hit consumers where it hurts.
The study projects that this surge could slow real GDP growth by 0.5 percentage points annually in both 2025 and 2026. At the same time, the unemployment rate may climb by 0.3 percentage points by the end of 2025 and 0.7 percentage points in 2026 — a sign of tightening economic conditions 😰.
For many households, the impact will be felt directly at the checkout. Average annual spending is expected to jump by about $2,400 in 2025, with clothing and footwear taking the hardest hit: short-term price hikes of 40% for shoes and 38% for apparel are on the horizon, with long-term increases of 19% and 17% respectively.
In a bold move, U.S. President Donald Trump signed an executive order to adjust tariffs with 69 key trading partners. Set to take effect on August 7, these new tariffs will range from 10% to 40% on various goods, adding fuel to ongoing debates about trade and economic policy.
For young consumers and economic enthusiasts alike, these changes signal a period of significant adjustment. Stay tuned as we continue to break down what these developments mean for everyday life and the global market!
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U.S. consumers hit with highest tariffs since 1934, Yale study finds
cgtn.com
