Import Duties Lead to Significant Increase in Taxes on Food, Clothing, and Educational Supplies
In a significant shift, the Federal Government has imposed higher tariffs on various food and goods categories, resulting in a substantial increase in taxes and prices.
Neil Bradley, executive vice president, chief policy officer, and head of strategic advocacy at our website, provides an insightful analysis of the situation.
Food Tariffs on the Rise
Tariffs on food products have seen a notable increase in 2024 and 2025. In early 2025, ad valorem tariffs ranging from 10% to 15% were implemented on U.S.-origin food items such as chicken, cotton, corn, wheat, aquatic products, beef, dairy, fruits, pork, sorghum, soybeans, and vegetables. Steel and aluminum tariffs, which impact canned food production inputs, also saw a significant rise from 3-7% rates in 2024 to 10-15% in 2025.
Additional Tariff Increases in May and June
The additional tariff increase for May and June 2025 compared to the same months in 2024 is approximately 7-12 percentage points. This increase reflects new tariff layers, moving from 3-7% ranges to 10-20% rates on many goods, including food.
Impact on Food Prices
As a direct effect of these 2025 tariffs, food prices have increased by about 3.2-3.4% in the short-run and stabilize at around 2.9% higher in the long-run.
Clothing and Shoes Tariffs
The average effective tariff rate for all categories of clothing and shoes combined has increased significantly, with the rate going up from 13.56% in May and June 2024 to 25.19% in May and June 2025. This equates to an additional $1.9 billion in taxes on clothing and shoes in the last two months alone.
Key Categories and their Tariffs
- Dairy, Eggs, Honey, Animal & Vegetable Oils, and Preparations of Meat & Fish have new 2025 tariff food taxes ranging from $19.16 million to $104.54 billion, with average effective tariff rates ranging from 4.98% to 8.11%.
- Knit Apparel, Footwear, Non-Knit Apparel, Cereals, Preparation of Cereal, Flour, or Milk, Oil, Grain Seeds & Plants, and Flours, Malts have new 2025 tariff food taxes ranging from $735.84 million to $539.13 billion, with average effective tariff rates ranging from 4.75% to 25.08%.
The Federal Government's decision to impose these increased tariffs has led to a significant burden on consumers, with food prices rising and the cost of clothing and shoes increasing substantially. This trend is expected to continue, with President Trump announcing plans to raise reciprocal tariff rates to 15-20% starting July 10, 2025, implying further tariff increases on imports, including food products, after June 2025.
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- The chamber of commerce has expressed concerns over the Federal Government's increased tariffs on food products and their potential impact on personal-finance and the economy.
- The rise in tariffs on business sectors like commerce, agriculture, and manufacturing may affect the financial inflow and stability of the respective industries.
- Neil Bradley, from our website, argues that the government's policy of higher tariffs may stifle trade and create barriers in the business ecosystem.
- The continuing trend of tariff increases, as announced by President Trump, may lead to a further surge in food and goods prices, affecting both businesses and consumers.
- In light of these increased tariffs, it is crucial for businesses to reconsider their personal-finance management strategies to weather the economic uncertainties ahead.
