The new US tariff policy is creating significant fluctuations in the US consumer market, directly affecting prices of many essential and luxury products. From morning coffee to living room furniture, US consumers are facing prospect of increased spending due to these tariff policies.
Morning Coffee Becomes a Luxury
Coffee, an essential part of many Americans' daily lives, is being hit hard by new tariffs. The US government on April 2 announced a 46% import tax on coffee from Vietnam - the world's second-largest producer - along with 32% on coffee from Indonesia and 10% on Central and South American producers such as Brazil and Colombia, which are expected to increase coffee prices significantly.
Vietnam is the third-largest coffee supplier to the US market - the world's largest coffee consumer - mainly exporting robusta, type commonly used in instant coffee and ready-to-drink drinks.
"Vietnam is the biggest factor affected. This will be a challenge for both the supply chain and end users with increased costs," said Tomas Araujo, a broker at global financial services group StonneeX.
“This is equivalent to US buyers paying around $2,500 more per tonne of coffee,” said a European trader. Global ICE robusta futures are currently trading at around $5,390 per tonne (as of April 3, 2025).
Experts say US roasters will have to switch from Vietnamese robusta to Brazilian robusta (called conilon). However, the supply of robusta from Brazil is quite limited, as the country mainly grows arabica, a milder coffee. This puts the US in competition with Brazil’s domestic industry for conilon, while Europe and China can take advantage of cheaper supplies from Vietnam.
Furniture: Escalating home decoration costs
Furniture industry is no exception. Many furniture products imported from Europe and Asia are now subject to higher tariffs, leading to higher retail prices. This is forcing American consumers to pay more to decorate and upgrade their living spaces. New tariff policy is significantly affecting furniture industry in the US. According to Reuters, Ms. Shannon Williams - CEO of American Home Furnishings Association - said that even with the support of tariffs, bringing production back to the US is still a challenging task. Especially with raw materials and labor costs, manufacturers will need to find innovative ways to adapt and survive. Mr. Doug Bassett, President of Vaughan-Bassett - one of the largest manufacturers of wooden bedroom furniture in the US, shared: "Tariffs certainly have a greater potential for the upholstery industry than for wood furniture, but even so, the wood industry still has a lot of opportunities." For wood products, the main beneficiaries will be companies like us who have factories of significant scale,” he said.
Existing businesses have more advantages than startups, Mr. Bassett said, largely because they have already overcome regulatory and licensing barriers.
Autos: Prices Soar
According to CBS News, the US administration has imposed a 25% tariff on imported cars and auto parts, a move that could shock American consumers at the new prices — even for domestically assembled cars, according to analysts. Experts say the tax policy will certainly increase car prices in the US and drive many potential customers out of the market.
Average price of a car in the US could increase by $5,000 to $10,000 immediately due to impact of tariffs, according to an expert's estimate on March 31. Dan Ives at Wedbush Securities.
In addition, auto insurance costs are expected to rise due to higher prices for imported parts, which increase repair costs. Forecasts show the average premium could rise 19% to about $2,759 (CBS News).
Automakers have responded differently to situation. According to the Verge, Ford has launched a “From America, For America” program with employee discounts to attract customers before prices increase. Meanwhile, Stellantis announced it is temporarily laying off 900 workers and halting production at several North American plants.
In addition, used car market has been affected. Used car prices are expected to increase due to demand for switching from new to used cars to avoid higher prices. In short, new tariffs have led to increased prices for new and used cars, as well as related costs such as insurance, significantly affecting American consumers.
Footwear and Clothing: Impact on Everyday Fashion
Fashion items such as footwear and clothing, many of which are manufactured in Asian countries such as Vietnam and Bangladesh, are subject to double-digit import tariffs. This has led to higher retail prices, affecting the purchasing power of American consumers.
According to Reuters, price of Nike Jordan and Adidas Samba sneakers is likely to increase in the United States after the US administration imposed a series of new tariffs on key manufacturing countries in the sportswear and apparel sectors, including Vietnam and Indonesia.
“Companies that have been working for years to reduce their dependence on China by moving to countries like Vietnam are now realizing that there is really nowhere to hide,” said analyst Simeon Siegel of BMO Capital Markets.
According to calculations by University of Delaware professor Sheng Lu, new tariffs will increase average tariff rate on apparel imported into the United States from 14.5% in 2024 to 30.6%. Based on value of imports in 2024, this bring total tariff on apparel to $26 billion - more than double the level of the previous year.
US consumers are rushing to shop before the "tax storm"
According to Abcnews, from furniture, home appliances to alcohol, Americans are rushing to buy before the comprehensive US tariffs begin to have a clear impact at the checkout counter.
Economists say the tariffs are expected to increase the price of everyday essentials and there are growing warnings that the US economy could fall into recession.
Auto sales jumped 11.2% in March, as car buyers rushed to dealerships to avoid the 25% tax on imported cars that took effect on April 3.
While it may be reasonable to stock up on some items at this time, experts recommend that consumers only buy within their financial means, not take out debt just to "get ahead" of the tariff effect.
Billionaire businessman Mark Cuban's actions raised further concerns this week when he posted on social media site BlueSky, advising people to "buy a lot of consumer goods" now before prices skyrocket. "From toothpaste to soap, anything you can find room for in your home, buy it now before stores have to restock," Cuban wrote.

Source: Vitic/ congthuong.vn