Trump’s 15% Tariff Plan Sparks Inflation Concerns as August Deadline Looms

* U.S. enacts 15% minimum tariff on all imports, the highest baseline in decades. * Countries risk tariffs up to 50% without new trade agreements by August. The United States has implemented a new trade policy imposing a minimum 15% tariff on all imported goods, which the administration could escalate to as much as 50% for certain countries if they do not secure new trade agreements. President Trump announced the policy on July 26, 2025, during an AI-focused conference. This policy establishes the highest baseline tariff in decades and will likely affect global trade, businesses, and consumer prices. For example, countries like China must secure bilateral deals by a specific deadline of August 12 to avoid steeper levies, while other nations could see higher tariffs begin as early as August 1. On July 26, multiple media reports indicated that major corporations were already responding to the new tariff measures. Swiss confectionery giant Nestlé disclosed plans to potentially increase prices on candy bars and sweets, citing concerns that reduced profit margins may impact its operations. Italian luxury apparel brand Moncler has raised prices on its products to compensate for higher import expenses. In addition, General Electric (GE), a U.S.-based multinational conglomerate, calculated that the tariffs may reduce its 2025 earnings by approximately $500 million and revealed plans to mitigate this impact through cost controls and price increases. Meanwhile, Johanna Foods, a New Jersey-based orange juice distributor, has taken legal action against the administration. The company filed a lawsuit challenging a proposed 50% tariff on Brazilian shipments, claiming the tariff could significantly disrupt its business and force retail prices to increase by up to 25%. Economists project that the new tariff policy will lead to notable price increases for a wide array of consumer goods. Research by Yale's Budget Lab forecasts that U.S. consumer prices could rise by 2% over two years due to the tariffs. The research also projects that prices for foreign-made leather goods, bags, and clothing will surge by over 40%, while electronics prices will increase by over 20%. However, Paul Ashworth, chief North America economist at Capital Economics, noted that the consumer price impact has been limited so far but is likely to accelerate later this year. The White House maintains that the burden of tariffs will not fall on U.S. consumers or businesses. According to CBS MoneyWatch on July 26, Spokesman Kush Desai emphasized that foreign exporters will bear the economic costs because they rely on access to the U.S. market, which he called the "world's biggest and best consumer market." He also referenced a Council of Economic Advisers study showing that import costs have declined so far in 2025.