US tariffs take effect Friday: 5 key imports face steep hikes; economic fallout looms
The US plans to impose higher tariffs on several major trading partners starting Friday unless new agreements are reached with President Donald Trump- raising concerns over rising consumer prices and economic strain. Financial experts warn the proposed tariffs, which must be paid by importers of foreign goods, will likely increase operating costs and reduce household spendingโpotentially dampening consumption, a key driver of the US economy.
Key products affected
Coffee The National Coffee Association says the US imports over 99 per cent of its coffee, with two-thirds of American adults drinking it daily. Top suppliers include Brazil, Colombia, and Vietnam.
- Brazil, accounting for over 30 per cent of US imports, will face a 50 per cent tariff from August 1. Trump announced the rate in a letter to Brazilโs leadership, referencing what he called a judicial โwitch huntโ against his ally, ex-president Jair Bolsonaro.
- Vietnam, despite a recent agreement with Trump, will see a 20 per cent tariff imposed.
Apparel According to the American Apparel & Footwear Association, China, Vietnam, and Bangladesh supplied over half of US apparel imports from January to May.
- Chinese goods, nearly one-third of the total, now carry a new 30 per cent dutyโon top of existing tariffs. If the current tariff truce lapses on August 12, duties may rise further.
- Vietnam and Bangladesh face 20 per cent and 35 per cent tariffs, respectively, under Trumpโs latest proposals.
Jasmine rice The US is the largest rice importer in the Western Hemisphere, with over 1.3 million tonnes annuallyโmore than 60 per cent of it being aromatic varieties like jasmine and basmati.
- Thailand will face a 36 per cent duty, India 26 per cent, and Pakistan 29 per cent starting Friday.
Cocoa USDA data shows cocoa bean importsโmainly from Ivory Coast and Ecuadorโaveraged over $1.1 billion annually (2017โ2021).
- Ivory Coast faces a 21 per cent tariff.
- Cocoa butter imports worth $576 million, primarily from Indonesia and Malaysia, will now face duties of 19 per cent and 25 per cent, respectively.
Electronics and raw materials Trump has also proposed a sweeping 50 per cent tariff on copper imports from August 1. According to BCG, this could add $8.6 billion to the cost of imported copper, with further increases possible if extended to related products.
- The construction sectorโusing 42 per cent of domestic copperโalong with electronics manufacturing, is expected to face the brunt of rising input costs.