On November 25th, U.S. President-elect Trump announced that a 25% tariff will be imposed on all products entering the United States from Mexico and Canada. Furthermore, Trump also declared an additional 10% tariff on Chinese goods.

Trump had previously suggested a 10% universal tariff on all imported goods in an interview last year. In November, a study by the National Retail Federation (NRF) pointed out that if Trump's new tariff plan is implemented, U.S. consumers could lose up to $78 billion in annual purchasing power. The study indicates that these tariffs will affect consumer goods categories such as apparel, toys, furniture, appliances, footwear, and travel goods.

An analysis by Reuters notes that in recent years, U.S. consumers have become more frugal, reducing non-essential expenditures, which has put pressure on retailers and consumer goods companies. Jonathan Gold, Vice President of Supply Chain and Customs Policy at the National Retail Federation, stated that retailers rely on imported goods and manufacturing components to offer a diverse range of reasonably priced products. If these import tariffs are implemented, it will place a heavier economic burden on low-income families, as the tariffs will ultimately be passed on to consumers, leading to increased prices.