Following the Supreme Court's February 20 decision striking down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), the administration moved within days to impose a temporary 10% tariff on all US imports under Section 122 of the Trade Act of 1974. Congressional Democrats estimate that current and proposed tariffs could cost American households an average of $2,512 per year through higher prices on imported goods.
A YouGov survey released in March found that 70% of Americans believe tariffs have already increased their expenses. Grocery costs drew the most complaints, with beef prices up 8.2% year-over-year and coffee prices jumping 12%. Electronics, clothing, and automobiles are also affected because these categories rely heavily on imported components and finished goods.
How the New Tariff Works
- 10% tariff applied to all US imports under Section 122
- Section 122 has a 150-day time limit (expires July 24, 2026)
- Congress must act to extend tariffs beyond the expiration
- Section 301 investigations target 16 economies for manufacturing overcapacity
- Separate Section 301 probe covers 60 economies regarding forced labor goods
- Estimated household cost: $2,512 per year
Which Products Are Most Affected
Groceries
The US imports approximately 15% of its food supply. Coffee, tropical fruits, olive oil, seafood, and specialty cheeses carry the full 10% tariff. Fresh produce from Mexico, which supplies 40% of US fruit and vegetable imports during winter months, now costs more at wholesale, and retailers are passing those increases to consumers.
Electronics and Appliances
Smartphones, laptops, televisions, and home appliances are overwhelmingly manufactured overseas. A $1,000 smartphone now carries a $100 tariff surcharge. Major manufacturers including Apple, Samsung, and LG are absorbing a portion of the tariff to remain competitive, but price increases of 3-7% have appeared across product lines.
Automobiles and Parts
The average new car contains $4,000-$6,000 in imported parts. A 10% tariff on those components adds $400-$600 to the manufacturing cost. Automakers including General Motors and Ford have signaled price increases for 2026 model year vehicles. The used car market, already under pressure, could see upward price pressure as new car affordability declines.
"Tariffs are a hidden tax on consumers," said Erica York, senior economist at the Tax Foundation. "The importer pays the tariff, but the cost is built into the price of goods at every level of the supply chain. By the time a product reaches a consumer, the effective price increase often exceeds the tariff rate due to compounding markups."
The July Deadline
Section 122 tariffs have a built-in 150-day sunset clause. Unless Congress passes legislation to extend them, the tariffs expire on July 24, 2026. Political dynamics make extension uncertain: some members of Congress support tariffs as a trade negotiation tool, while others view them as regressive taxes that disproportionately burden lower-income households.
The outcome depends partly on the Section 301 investigations launched in March. If those investigations produce findings by late May, the administration can impose targeted tariffs on specific countries and products under Section 301 authority, which has no time limit. This would provide a legal basis for tariffs beyond the July expiration.
How to Reduce the Impact on Your Budget
Buy domestic when possible for categories with significant import tariffs: American-grown produce, US-assembled appliances, and domestically manufactured clothing. Time large purchases before potential price increases. Build a 10% buffer into your monthly budget to absorb gradual price increases. For electronics, consider certified refurbished products, which avoid new-product tariffs and cost 20-40% less than retail.
