CBS MoneyWatch's Kelly O'Grady explains how President Donald Trump's sweeping import taxes could hit Americans hardest at the checkout aisle.

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

Global Tariffs

President Donald Trump's new import tariffs may soon affect the prices of various goods in the United States. According to shopping expert Trey Baj, the impact on consumers will vary depending on the products and their countries of origin. Clothing and apparel sold by major retailers are often manufactured in countries such as India, Indonesia, Cambodia, and Vietnam, which may be subject to the new tariffs.

The potential for price increases is significant, but the extent will differ based on the specifics of the tariffs and the supply chains involved. Clearance sections in stores are being recommended as a way for consumers to find discounted items and offset potential price hikes. In particular, sneaker prices may be affected due to the prevalence of imports, and consumers may currently find discounts as stores clear inventory.

Certain products are exempt from the tariffs. For example, Canadian beauty brands and over-the-counter cosmetics and personal care products from Canada and Mexico will not be subject to additional taxes due to a free trade agreement. Domestic produce such as potatoes, oranges, and apples are unlikely to see price changes, as these staples are primarily grown within the United States.

Products like toilet paper are largely manufactured domestically, with raw materials often sourced from Canada. Experts advise against panic buying, noting that non-perishable items can be stocked up on if found on sale, but shortages are not anticipated at this time.

The most significant price increases are expected in the electronics and toy categories, with 80% of toys imported from China. Some retailers have prepared by increasing inventory, but consumers may still encounter higher prices or reduced availability in these categories. Experts caution shoppers not to panic-buy essentials, even as budgets are tight and household debt is on the rise.



Trump's tariffs spark concern for American shoppers

Ranging import tariffs could impact your favorite products soon. But what will that mean for consumers? I'm at the American Dream Mall in New Jersey and with me is shopping expert Trey Baj. So what's your biggest takeaway when it comes to tariffs? Yeah, so the reality is, is that prices may go up on many of the items we need to buy. We stop at Old Navy, a popular destination for many families. These items, they're from India, Indonesia, Cambodia. This one's from Vietnam. What are consumers going to see in terms of price increases? So ultimately, it depends on where the tariffs land for each area and where those items are imported from. And is that common across the clothing and apparel industry, that it's just made all over the world? Mostly for larger retailers like where we are right now, so the pricing is going to be hard to predict. Next stop, the clearance section. This is a great way to offset tariff-related price hikes because everything is deeply discounted. Well, and especially for all that back-to-school shopping coming up. Absolutely. And what about sneakers? I mean, a lot of these are imported. They are, so we do expect price hikes, so if you are looking for sneakers, this is a really good time because, as you can see, we're seeing deep discounts right now on all things for outdoor activities. This store highlights the complexities of tariffs. So Lush is a Canadian beauty brand. So what does that mean for consumers? No tariffs because their products come in from Canada and Canada is exempt. A free trade carve-out exempts over-the-counter cosmetics and personal care products from Canada and Mexico. When it comes to produce, a lot of these things are imported. What do we actually produce domestically? Thankfully, we produce a lot domestically. Staples like potatoes and oranges and apples. The prices should stay steady on these items. OK, so I remember during COVID, everyone went out and panicked about toilet paper. Is this going to be impacted? This is not something I'm worried about right now. We manufacture here. However, raw materials are imported from Canada. Of course, a fluid situation. So I would say don't run out and buy it. But if you see a big sale on your favorite brand, it's OK to stock up because it's non-perishable. Hardest hit by tariffs? Most likely electronics and toys. 80% of toys are imported from China. In fact, everything in this aisle is from China. Yeah, so we're going to see higher prices and perhaps empty shelves because of shortages. However, the manager of this Toys R Us told us she's stockpiled and does not plan to raise prices. When we hear higher prices, there's this motivation to go out and just buy, buy, buy. We're all on a budget right now. Debt is on the rise. So we do not want to go out and panic buy, especially on essentials.

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