How Trump’s proposed tariffs could affect the cost of jeans, appliances, and everyday items

Increased tariffs on imports will likely result in higher consumer prices across multiple sectors. Companies that rely heavily on imports may face reduced sales due to declining consumer purchasing power. Retailers like Walmart and Target may be adversely affected by these changes as their profit margins could shrink. However, local manufacturers may benefit from less competition from foreign goods, potentially seeing an uptick in demand and prices for domestically produced products.

Manufacturers of low-cost consumer goods are especially vulnerable to tariff increases. Companies that import appliances could face rising costs, subsequently passing this along to consumers, potentially leading to reduced demand for major appliances. This could negatively impact stocks in this sector, including major home appliance makers.

The proposed tariffs might encourage U.S. manufacturing, but the immediate inflationary pressures could deter consumer spending. Stocks in sectors reliant on consumer discretionary spending may see downward pressure as household disposable income declines due to increased costs.