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The impact of tariffs imposed by President Trump is becoming increasingly evident as the prices of several everyday products continue to climb. CBS News is closely monitoring the situation, focusing on the rising costs associated with common grocery items, as well as the expenses related to purchasing and maintaining vehicles.
With new tariffs set to take effect starting April 2, CBS News will provide ongoing updates on weekly grocery prices and the monthly costs related to purchasing both new and used vehicles, including parts, repairs, insurance, and materials used in construction and manufacturing.
Experts in economics indicate that consumers should brace for escalated prices on imported goods targeted by these tariffs as the weeks and months unfold.
Grocery Prices
One of the most noticeable effects of the tariffs will likely be felt at grocery stores, where a significant portion of fruits and vegetables consumed by American families is sourced from countries like Mexico, Canada, and China—nations directly affected by these tariffs. Analysts predict that the increased costs incurred from these tariffs are likely to be reflected at the checkout counter.
In our analysis, we investigated the prices of fruits, vegetables, and juices that are predominantly imported, utilizing data from the United States Department of Agriculture (USDA). The average prices reported are derived from weekly surveys conducted by the USDA at numerous grocery outlets nationwide, and we have compiled this data from 2020 to the present week.
Vehicle Costs
The financial burden of acquiring and maintaining a vehicle also looms large, particularly as new tariffs threaten to raise costs on imported cars and trucks. Experts foresee that these moves could increase the overall expenses related to ownership, including parts, repairs, and insurance, potentially raising costs by thousands of dollars.
In the aftermath of the COVID-19 pandemic, the automotive sector also experienced significant price hikes due to supply chain bottlenecks and inflationary pressures. Both new and used car prices surged, along with costs for parts, repairs, and insurance premiums.
To illustrate these changes, we present an index format that showcases price percentages above a baseline, particularly focusing on small SUVs as a representative model to clarify recent trends in monetary terms. Used car prices, especially, experienced dramatic increases after the pandemic disrupted production and exacerbated a global shortage of automotive microchips, pushing some late-model used vehicles close to the price of new counterparts.
This scenario also affected auto parts pricing, which in turn raised expenses for consumers at repair shops. Alongside rising repair costs, factors such as labor shortages and changes in driving behavior have contributed to inflated automobile insurance premiums, compounding the overall financial impact for car owners and operators.
Construction and Manufacturing Materials
The costs associated with construction and the manufacturing of durable goods, such as appliances, are inherently linked to the prices of essential materials like steel and aluminum—both of which are being targeted by new tariffs set by the administration. These added costs will likely permeate through various sectors, affecting the pricing of end products across the board.
Continued Monitoring
As developments unfold, CBS News remains committed to providing timely updates and comprehensive insights into how these tariffs are shaping the economic landscape and affecting consumer pricing across multiple sectors.
Source
www.cbsnews.com