US commodity prices face sharp increase due to tariffs
Reciprocal taxes are causing prices of many goods in the US to increase sharply, from coffee, furniture to clothing, putting great pressure on consumers.
US tariffs begin to push up commodity prices
In August 2025, the US consumer price index (CPI) increased by 2.9% compared to the same period last year, the highest level since President Trump entered his second term. The main reason was that import tariffs began to spread throughout the economy, causing imported goods to increase significantly in price.
Initially, American businesses shouldered the costs or stockpiled inventory to delay price increases. However, this strategy could not last, and many companies were forced to pass the burden on to consumers.
The items with the biggest price increase
The August CPI report shows that many imported goods have had high price increases compared to a year ago, typically:
Coffee: +21%
Audio equipment: +12%
Home Furniture: +10%
Banana: +6.6%
Women's dresses: +6.2%
Clock: +5.6%
Auto parts: +3.4%
Coffee is the hardest hit. About 80% of unroasted coffee imported into the US comes from Latin America, especially Brazil, which is currently subject to tariffs of up to 50%.
The widespread price increases have put people, especially low-income households, under heavy pressure. Wages have not kept pace, causing costs for basic needs such as food, fuel, clothing and housing to rise.
Clara Moore, 44, of New Jersey, said her family’s grocery bill has increased from $175 to about $250 per trip. To save money, she has been forced to cut back on entertainment and online shopping.
Businesses are forced to pass costs on to consumers.
Many companies can no longer afford the new tariffs and are starting to raise their retail prices, according to the Federal Reserve. Home Depot, Macy's and Nikon are among those publicly adjusting prices.
Economists predict that consumers will bear about two-thirds of the costs of the new tariffs in the coming months. As a result, spending habits will change, with people prioritizing essential purchases over discretionary spending.
Although the White House insists that inflation remains low and the economy is benefiting from the tariffs, experts say that the upward pressure on prices will continue. With this trend, Americans will have to tighten their spending, while businesses will continue to face major challenges in balancing profits.
