LONDON — The latest wave of US tariffs on imports is set to disrupt key consumer sectors, pushing up prices on everything from groceries to clothing and cars while forcing businesses to rethink supply chains, according to new insights from Euromonitor International.
In 2024, the US imported 61% of its goods—worth $2 trillion—from the EU, Canada, Mexico, and China, highlighting the nation’s dependence on international supply chains for critical products. With new tariffs taking effect, this dependency has turned into a vulnerability for American consumers and businesses, with higher prices and potential shortages on the horizon.
Grocery Store Prices Expected to Climb as Tariffs Hit Food Imports
The food sector, heavily reliant on imported agricultural products and ingredients, is already feeling the pinch. Tom Rees, global insight manager for staple foods at Euromonitor, said: “US shoppers are facing higher prices at the grocery store. Despite pressure on retailers to absorb any cost increases, top agricultural imports including baked goods, pasta and cereals, fruits, vegetables and beef are firmly in the firing line.
“Tariffs on agricultural inputs and finished goods are expected to increase production costs, disrupt sourcing strategies and lead to higher food prices.”
Tariffs on agricultural inputs and finished goods are expected to disrupt sourcing strategies while increasing production costs, adding strain on an industry already grappling with tight margins and logistical challenges. Retailers may find it increasingly difficult to shield consumers from price hikes, likely translating to noticeable increases in everyday grocery bills for American households in the coming months.
Fashion Sector Confronts Higher Costs and Accelerates Diversification Efforts
The fashion and apparel sector, where 80% of apparel and footwear sold in the US are imported, is also bracing for significant disruption. While global sales are still projected to grow by 1% in 2025, the US market is facing a period of price volatility and supply chain uncertainty.
In response to tariff risks, Chinese textile and fashion manufacturers are increasingly shifting their focus to emerging markets such as Brazil, Mexico, India, and Indonesia, which offer growing demand from large, young populations with rising incomes. This diversification is helping producers offset potential declines in US demand while reducing their exposure to policy shifts in the American market.
Automotive Industry Faces Steep Price Increases and Margin Pressures
The automotive industry is among the sectors most exposed to the impacts of new tariffs, with around 50% of passenger cars and a third of pickup trucks in the US being imported. Tariffs on vehicles and their components—some reaching as high as 25%—could add as much as $6,200 to the price of a pickup truck and $4,300 to the cost of a passenger car, Euromonitor’s analysis shows.
This sharp increase in vehicle prices could dampen consumer demand while squeezing profit margins for automakers operating in the US, forcing them to divert resources away from innovation and R&D to address rising operational costs and supply chain reconfigurations.
Wider Implications for US Businesses and Consumers
The tariff landscape is creating ripple effects across sectors, forcing businesses to rethink their sourcing strategies, accelerate automation investments, and re-evaluate expansion plans. Consumers are likely to face higher prices and reduced product variety as businesses navigate rising import costs and attempt to localize or diversify their supply chains.
Beyond immediate price impacts, the broader consequence may be a shift in consumer behavior toward alternative options, including second-hand goods, local substitutes, and delayed purchases, particularly in discretionary categories like apparel and vehicles.
