Americans set to pay more for cars, coffee and clothing as average U.S. tariff rate jumps to high not seen since Great Depression

President Donald Trump’s sweeping tariff package took effect in August, imposing a baseline 10% duty on most U.S. imports and lifting the effective average tariff rate above 17% — the highest since 1935, according to Yale’s Budget Lab.

The levies hit a broad range of goods, from European appliances and Japanese cars to Chinese furniture, toys, and food, while sparing some oil, gas, smartphones, and products covered by the U.S.-Canada-Mexico trade deal.

Trump celebrated online, declaring, “Billions of dollars in tariffs are now flowing into the United States of America!”

Economists, however, warn the duties will add costs for households. Yale estimates tariffs could raise expenses by up to $2,400 per family this year, with clothing among the hardest hit — shoe prices projected to jump 40% and apparel 38%.

Markets largely shrugged, with European and Asian equities higher and U.S. futures modestly up. But Trump signaled more to come, saying he plans further tariffs on pharmaceuticals and semiconductors, sectors with heavy import reliance.