On the evening of August 5, U.S. President Donald Trump signed a sweeping executive order to implement new tariffs on imports from dozens of countries starting August 7, 2025. This move follows Trump’s long-standing agenda to “make America great again” by boosting federal revenue and reviving U.S. manufacturing.
The initial policy—announced on April 2—targeted over 180 countries with a temporary 10% equalization tariff, delayed for 90 days to allow for negotiations. As of July 31, the U.S. finalized new rates for nearly 70 countries, ranging from 10% to 41%. Countries not specifically listed will face a default 10% tariff. The new rates officially take effect at 12:01 AM ET on August 7, 2025.
Updated U.S. Tariff Rates (Effective Aug 7, 2025)
The updated tariff policy targets America’s largest trade deficit partners. These changes aim to pressure foreign governments and incentivize local manufacturing.
These countries account for the top 10 U.S. trade deficits, making them primary targets of the tariff campaign.
Updated U.S. Tariff Rates (Effective Aug 7, 2025)
Which Products Are Likely to Become More Expensive?
As new tariffs kick in, American consumers and businesses will likely face higher prices on a wide range of everyday goods. Here are some product categories to watch:
1. Apparel & Footwear: The majority of clothing and shoes sold in the U.S. are imported from countries like Vietnam, China, and Bangladesh—all of which now face tariffs as high as 35%. Retailers like Target, Walmart, and brands such as Nike and Levi’s are already adjusting prices in response. Yale’s Budget Lab estimates apparel costs may rise up to 37% in the short term.
2. Coffee, Olive Oil & Grocery Staples: The U.S. imports almost all of its coffee, with major suppliers like Brazil and Vietnam now subject to 50% and 20% tariffs, respectively. Olive oil from Italy, Spain, and Greece is also likely to become more expensive under the new 15% EU tariff rate. Food prices overall could climb 3.4%, with fresh produce seeing the sharpest spikes.
3. Alcoholic Beverages: European wine, Irish whiskey, and Champagne may soon come with a premium price tag, especially if alcohol isn’t exempted from EU-U.S. tariff talks. Mexican beers like Modelo and Corona are also expected to cost more due to higher aluminum duties.
4. Automobiles: Imported passenger vehicles and components face a 15–25% tariff, affecting not just foreign carmakers but also U.S.-based automakers that rely on international parts. Although automakers have been absorbing costs so far, that may not be sustainable if tariffs persist.
5. Housing Materials: Steel, aluminum, copper, and even lumber—key materials for construction—are impacted by new duties, especially on imports from Canada. The National Association of Home Builders warns that tariffs could drive up homebuilding costs and lead to higher housing prices for consumers.
6. Energy & Fuel: Canada supplies more than 60% of U.S. crude oil imports. A 10% tariff on Canadian energy products could strain refinery operations and potentially raise fuel prices domestically, depending on how Canada responds.
These broad-based increases in input and consumer costs show just how interconnected global trade is—and how quickly tariffs can reshape the pricing landscape for American households.
Who’s Really Paying for the Tariffs?
While the public often assumes tariffs are paid by foreign exporters, economic data tells a different story. According to a Goldman Sachs analysis, exporters absorb only about 20% of tariff costs, and companies will pass on 70% of the direct cost of tariffs to consumers through higher prices
This cost pressure is already showing up:
Major brands like P&G, Nike, Walmart, Mattel, and Best Buy have all increased prices.
Companies like GM and Ford have reported lower profits and thinning margins.
Arabica coffee bean futures have doubled since 2023, and food companies are passing those costs to consumers.
These burdens add up: Yale University’s Budget Lab estimates the new tariffs could increase annual household spending by $2,400 per year, fueling both inflation and reduced real purchasing power.
What’s more, businesses are struggling to absorb rising costs, leading to weaker earnings, margin pressure, and in some cases, reduced hiring or delayed expansion.
How Is This Affecting Companies’ Supply Chain Policies?
Trump’s sweeping tariff policy is forcing companies to overhaul how they manage their global supply chains. With increased duties hitting key manufacturing partners like China, Mexico, Vietnam, and India, the cost structure of imported goods has shifted dramatically—pressuring companies to rethink their sourcing strategies from the ground up.
Many firms are now:
Accelerating supplier diversification: Companies that once relied heavily on a single manufacturing hub (e.g., China or Vietnam) are now scouting suppliers in lower-tariff countries like Indonesia, Turkey, or Eastern Europe.
Restructuring contracts: Buyers are renegotiating contracts with manufacturers to account for added tariff costs, demanding either shared cost absorption or modified terms.
Building regionalized supply chains: More companies are adopting a "China+1" or "Nearshoring" model—moving production closer to key markets like the U.S. to reduce freight time and tariff exposure.
Adjusting lead times and inventory buffers: With regulatory uncertainty, firms are expanding safety stock and reassessing just-in-time models.
Investing in trade intelligence tools: To avoid being blindsided by tariff changes, companies are prioritizing tools that track global trade policies, customs classifications, and shipping patterns in real time.
Ultimately, Trump’s tariff escalation has made one thing clear: global sourcing is no longer just about price—it’s about agility, risk mitigation, and strategic redundancy.
How SourceReady Can Help
SourceReady was built for turbulent trade environments like this. As an AI-powered global sourcing engine, we help companies adapt faster, reduce risk, and regain control in a shifting global landscape.
Here’s how we support your supply chain through tariff volatility:
Real-Time Tariff Intelligence: Our platform tracks evolving tariff rates across 100+ countries, helping you make timely sourcing decisions.
Supplier Matching Engine: Automatically match your sourcing needs with verified suppliers.
Comprehensive Supplier Profiles: Every match includes details like certifications, clients and etc.
SourceReady ROI Calculator: Enter your annual sourcing spend and instantly see your efficiency gains: hours saved, faster time-to-market, and cost reductions—all quantified in seconds
Beyond that, SourceReady brings distinct advantages that other platforms don’t:
1. Global Reach, Not Just China-Centric
Alibaba is heavily focused on Chinese suppliers. SourceReady gives you access to 1.2 million+ cross-verified suppliers across 100 countries — including Vietnam, India, Turkey, Mexico, and beyond. It’s built for brands looking to diversify their sourcing, not stay locked into one region.
2. No Ads. No Bias. Just What Fits You
On SourceReady, suppliers can’t pay to appear higher in search results. There are no ads, no pay-to-play listings — just relevant, trustworthy matches ranked by how well they fit your specific needs. It’s about quality and fit, not marketing spend.
3. Tell It What You Need — Like ChatGPT for Sourcing
Forget endless scrolling. Just describe the kind of supplier you’re looking for — MOQs, certifications, location, materials — and SourceReady returns a curated list of verified options. It's a smarter, faster way to source.
4. From Sketch to Spec with AI
Turn a simple sketch or idea into a full-fledged product concept. SourceReady’s AI generates photorealistic renderings and a first-pass Bill of Materials (BOM) based on your prompt. It’s the fastest way to bring a product idea to life — and it dramatically shortens your design-to-sourcing cycle. Explore how SourceReady can future-proof your sourcing today.
Conclusion
The new U.S. tariff policy marks a turning point for global trade. From rising costs on everyday goods to pressure on corporate margins and inflationary risks, the effects are already rippling through supply chains and consumer wallets. While these measures aim to boost American manufacturing, they’ve also created urgent challenges for businesses that rely on international sourcing. In this new landscape, agility is everything. Companies that adapt quickly—by diversifying suppliers, embracing new technologies, and staying informed—will be better positioned to weather volatility.
Head of Marketing
Judy Chen
Graduating from USC with a background in business and marketing, Judy Chen has spent over a decade working in e-commerce, specializing in sourcing and supplier management. Her experience includes developing strategies to optimize supplier relationships and streamline procurement processes for growing businesses. As SourceReady’s blog writer, Judy leverages her deep understanding of sourcing challenges to create insightful content that helps readers navigate the complexities of global supply chains.
