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American Focus > Blog > World News > Are tariffs driving prices up? Here’s what we know : NPR
World News

Are tariffs driving prices up? Here’s what we know : NPR

Last updated: July 29, 2025 5:25 am
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Are tariffs driving prices up? Here’s what we know : NPR
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A family shops in a toy store in Princeton, N.J.

A family shops in a toy store in Princeton, N.J.

Matt Slocum/AP


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Matt Slocum/AP

It’s the most common question asked about tariffs: When will prices start going up?

For months, shoppers heard from manufacturers and retailers that President Trump’s barrage of new tariffs on virtually all imports would cost them dearly. But that hasn’t happened, and the full blow has yet to land.

Here’s what’s going on.

The biggest tariffs keep getting pushed back

Back in April, Trump imposed new tariffs on nearly everything the U.S. imports, with Chinese goods facing a levy as high as 145%. The stock market plummeted on the news, and Trump put the plan on a 90-day pause. And when the 90th day came in July, he extended the pause again until this Friday, Aug. 1.

In the meantime, tariffs have been set at 30% for Chinese imports and at least 10% for essentially the rest of the world, while the Trump administration tries to negotiate individual trade deals with every country. On Sunday, Trump shook hands with the president of the European Commission after agreeing to terms for a new deal. Talks continue between the U.S. and China today.

Companies stockpiled goods to avoid paying more

Given Trump’s longtime campaign in favor of tariffs, some companies began stockpiling goods as early as last winter — hoping to avoid new import taxes for a while.

Best Buy rushed electronics from Asia. American Fireworks Company in Hudson, Ohio, stocked up on fireworks for the Fourth of July, almost all of which are made in China. Pet-gear seller Barton O’Brien from Kent Island, Md., borrowed money to get as many harnesses, collars and other supplies from China as he could store.

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“We had dog life jackets in the bathroom,” O’Brien, whose company BAYDOG sells at hundreds of stores, told NPR in May. “Our warehouse was bursting. We had to rent a container and put it out back.”

In fact, so many importers rushed their shipments that wintertime ports looked more like peak season — as if another Black Friday and Christmas were on deck — than the typical post-holiday lull.


See also  Trump's first 100 days in office; Mohsen Mahdawi : NPR
Business owners are hopeful that President Trump’s proposed high tariffs, like those reaching up to 145% on Chinese goods, will not materialize. Maintaining current tariff levels around 30% is preferred, as the costs can be distributed among manufacturers, wholesalers, retailers, and consumers. This approach helps mitigate the impact of tariffs and minimizes the financial burden on individual businesses. The boy sat quietly in the corner, watching the raindrops slide down the windowpane.

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