The Peterson Institute for International Economics released a detailed breakdown this week of what the Trump administration's China tariffs are costing American households. The headline number: $2,200 per year for the median family — but the actual hit varies enormously depending on what you buy.
The Breakdown by Category
Not all goods are hit equally. Here's where the tariff costs are showing up most sharply in everyday spending:
- Electronics: $340/year. Laptops, phones, tablets, and TV components are heavily imported from China. A new laptop that cost $800 last year now runs closer to $950.
- Clothing and footwear: $290/year. About 35% of U.S. clothing is made in China. Budget brands have been hit hardest.
- Furniture and home goods: $260/year. IKEA, Wayfair, and similar retailers have passed through most of the tariff cost.
- Appliances: $180/year. Washing machines, refrigerators, and microwaves have all seen price increases.
- Toys and sporting goods: $130/year. About 80% of toys sold in the U.S. are manufactured in China.
Who Gets Hit Hardest
Lower-income households feel the pinch most, because they spend a larger share of their budget on the types of goods most affected by tariffs. A family earning $40,000 a year faces an effective tariff burden of around 4.2% of disposable income. For a family earning $150,000, it's closer to 1.1%.
"Tariffs are effectively a regressive tax. They fall hardest on the people who can least afford them." — Mary Lovely, Peterson Institute senior fellow
What You Can Do About It
You can't escape tariffs entirely, but you can minimize the damage:
- Buy used for big-ticket items. The secondhand market for electronics and furniture is booming — and tariff-free.
- Check the "Made in" label. Goods from Vietnam, India, and Mexico are often cheaper right now as manufacturers have shifted production out of China.
- Time your purchases. Some categories — especially electronics — may see targeted exemptions later this year as trade negotiations continue.
The administration has signaled it may offer exemptions for specific categories before the holiday shopping season to avoid a consumer backlash. Watch for announcements in August and September.
