Just when you thought you had the tariff landscape figured out, the Trump administration is moving in two directions at once. On June 2, the U.S. Trade Representative proposed sweeping new tariffs of 10%–12.5% on imports from 60 countries — potentially billions of dollars in new costs for American consumers. Meanwhile, several existing tariff exclusions are scheduled to expire in July, which could quietly push prices higher on a different set of goods. Here's what's actually changing and what it means for your household budget.
The New Tariff Proposal: 60 Countries, 10%–12.5%, and What's Actually Being Targeted
The new proposal targets 60 countries accused of allowing goods made with forced labor to enter the global supply chain. While it's framed as a human rights and trade fairness measure, the economic impact is straightforward: higher costs on imported goods from a significant chunk of the world's manufacturers.
The proposed tariff rates of 10%–12.5% would be added on top of existing duties in many product categories. These are not yet enacted — they're currently in a public comment and review period — but if finalized later this year, they would affect:
- Apparel and footwear from Southeast Asian suppliers, including Vietnam, Bangladesh, and Cambodia — key production hubs for major U.S. clothing brands
- Electronics components from Malaysia and Thailand
- Furniture and home goods from a range of countries currently supplying the U.S. market
- Agricultural products from certain Latin American and African nations
This proposal is separate from the existing China tariff structure, which has its own complex schedule following the tariff reduction deal struck in November 2025. The combined effect — if the new tariffs are finalized — would add additional cost pressure on top of an import bill that's already elevated.
What's Quietly Expiring in July — the Part Nobody Is Talking About
While the new proposal grabs headlines, a different change is arriving at the end of July: several Section 301 tariff exclusions are scheduled to expire unless formally renewed by the administration. These exclusions were temporary reprieves allowing specific goods to be imported from China at reduced tariff rates.
The July expiration list includes:
- Medical equipment — diagnostic devices and certain surgical tools imported from China had exclusions reducing rates from 25% to lower levels; if not renewed, those rates snap back
- Industrial machinery components used by U.S. manufacturers in production
- Select consumer electronics accessories
These aren't dramatic headline items, but they work their way through supply chains to affect consumer prices 3–6 months after the cost increase hits importers. Medical equipment tariff increases in particular tend to flow through to hospital and clinic pricing within two to three quarters.
Industry groups are lobbying intensively to renew the medical equipment exclusions. The Trump administration has been more selective than the Biden administration about renewals, so some are likely to expire without an extension.
The Real Price Tag: $1,500 Per Household and the Products Feeling It Most
The cumulative cost of the existing 2025–2026 tariff structure is already significant. According to the Tax Foundation, the Trump tariff regime represents the largest U.S. tax increase as a percentage of GDP since 1993, translating to an average household cost of approximately $1,500 per year. Broken down by category:
- Cars and car parts: The 25% auto tariff added an average of $3,000–$4,000 to new vehicle sticker prices — the biggest single tariff impact on consumer spending
- Clothing and footwear: Higher prices especially at value retailers that source heavily from Southeast Asia
- Electronics: Phones, laptops, and peripherals carry tariff-driven price floors that haven't come down despite some price competition
- Groceries: Food inflation remains relatively moderate at 2.4% annually because most of what Americans eat is domestically produced — but imported ingredients in processed foods have gotten quietly more expensive
These costs sit on top of the energy-driven inflation that pushed the overall CPI to 4.2% in May. Unlike energy costs, which could drop quickly if the Iran deal is signed, tariff costs are structural — they don't disappear unless the tariffs themselves are removed or expire.
"Tariffs hit lower- and middle-income households proportionally harder because they spend a larger share of their income on goods. The $1,500 average conceals a wide range — some households are absorbing $3,000 or more." — Yale Budget Lab analysis, June 2026
What You Can Do to Reduce the Impact
You can't opt out of tariffs, but you can reduce their bite:
- Time large purchases strategically. The new 60-country tariff proposal is still in review. If finalized and enacted, prices on affected apparel and electronics would rise further. Buying before the final rule is issued may save money, though the timeline is uncertain.
- Look for "made in" label shifts. Manufacturers have been relocating production to avoid tariffs. Some goods previously made in Vietnam or China are now being produced in tariff-exempt countries, which can mean lower retail prices — check origin labels when comparing brands.
- Buy American-made goods where practical. Tariffs don't apply to domestic production, and the price premium has narrowed as imported goods got more expensive. For furniture and home goods especially, domestic producers have become more price-competitive.
- Compare total cost of ownership on cars. If you're in the market for a vehicle, the 25% auto tariff has added $3,000–$4,000 to average new car prices. Used car prices, while elevated, don't carry the tariff premium — the gap between new and used has widened significantly.
Frequently Asked Questions
Which US tariffs are expiring in July 2026?
Several Section 301 tariff exclusions on imports from China are scheduled to expire in late July 2026, including some medical equipment, industrial machinery components, and select consumer electronics accessories. If not renewed by the Trump administration, the tariff rates on these products revert to the higher base rates, typically pushing consumer prices up within 3–6 months.
How much are US tariffs costing American families in 2026?
The Tax Foundation estimates the current tariff structure costs the average American household approximately $1,500 per year — the largest U.S. tax increase as a share of GDP since 1993. Lower- and middle-income families bear a proportionally larger share because they spend more of their budget on goods rather than services, which are generally not subject to tariffs.
Will the new US tariffs on 60 countries raise prices in 2026?
Not immediately. The June 2 proposal is in a public comment and review period. If finalized, enactment would likely come several months later, with retail price increases appearing 3–6 months after implementation as importers work through existing inventory and adjust supply chains. Most consumers would see price effects in early-to-mid 2027 if the tariffs are finalized on a normal timeline.
Bottom Line
The tariff landscape is moving in two directions simultaneously: new tariffs being proposed on 60 countries while existing exclusions expire in July. For consumers, the net effect is continued upward pressure on goods prices through the end of 2026 and into 2027 — piled on top of an inflation rate already at 4.2%. Unlike energy costs tied to the Iran conflict, tariff-driven inflation is structural and won't resolve with a peace deal or a Fed rate decision. It requires a deliberate policy reversal.
