With 2025 underway and a new administration in office, many are closely watching the economy to see whether key indicators signal growth, stability, or uncertainty. One of the most pressing topics in economic discussions right now? Tariffs.
Tariffs, which the Council on Foreign Relations defines as taxes imposed on foreign-made goods, are often passed on to consumers, leading to higher prices at home. President Donald Trump has implemented tariffs on several major trade partners, including Mexico, Canada, and China—three countries that collectively account for over 40% of U.S. imports, according to the Economic Policy Institute.
Most economists have long warned that tariffs increase consumer prices, drive inflation, and ultimately threaten economic growth. Recent trends seem to support this stance. According to CNN, “The average price of eggs in January 2025 was $4.95, a roughly 19% increase from the previous month.” This price surge surpasses even the highest levels seen during the COVID-19 pandemic. Given that Mexico and Canada are two of the U.S.’s largest agricultural suppliers, tariffs on these countries will likely continue to drive up grocery costs.
Peterson Institute for International Economics projects that if Trump moves forward with his planned 25% tariffs on Mexico and Canada, which were recently postponed until March 1, the typical U.S. household could see additional costs exceeding $1,200 per year.
Despite prioritizing inflation reduction during his campaign, According to BBC, Trump’s policies may be exacerbating the problem. Inflation rose by 0.5% in January 2025, bringing the annual rate to 3%, which is a concerning sign of the economic strain these tariffs are placing on American consumers.
As 2025 continues, all eyes will be on the economic impact of the tariff. Rising consumer prices, especially on everyday essentials like food, combined with growing inflation concerns, could lead to challenges for many American households. With additional tariffs set to take effect in March, the coming months will be crucial in determining whether these measures strengthen the U.S. economy . . . or place even more strain on it.