The Impact of Tariffs on Consumer Prices

Tariffs are essentially taxes on imported goods, and their implementation could significantly increase the prices of everyday items, including products that contain foreign ingredients. For example, cookies made with imported vanilla extract and cocoa beans would likely become more expensive under proposed tariffs from President-elect Trump. Economists generally agree that when tariffs are imposed on imports, the costs are often passed down to consumers, leading to higher prices and potential inflation. As many common goods depend on globally sourced materials, the economic repercussions are predicted to affect a wide array of products well beyond just cookies.