Tariffs Push U.S. Retail Prices Higher as New Duties Take Effect
Special Report - Shelbyville NOW
August 20, 2025 — The impact of new U.S. tariffs is now showing up in retail prices nationwide. From consumer electronics to home improvement goods, American shoppers are starting to feel the cost of sweeping trade policies that raise duties on imported metals, components, and consumer goods. With steel, aluminum, and copper now taxed at 50%, and the end of duty-free small parcels coming August 29, the stage is set for higher prices heading into the fall and holiday shopping season.
Steel, Aluminum, and Copper Hit With 50% Tariffs
The administration’s newest tariffs expanded this week to cover hundreds of products—from household items like strollers and deodorants to industrial materials like turbines and rail cars.
- Steel and aluminum imports are now taxed at 50%, effective August 19.
- Copper products have faced the same 50% rate since August 1, applied to wiring, motors, compressors, and other copper-heavy items.
For consumers, this means appliances, HVAC systems, and metal-based tools will gradually carry higher prices as fresh shipments arrive under the new rules.
Electronics: PlayStation 5 Prices Jump $50
Gamers got a shock this morning as Sony raised the price of its PlayStation 5 consoles by $50 in the U.S.—a direct result of tariff costs on copper and Asian imports.
Industry experts warn that graphics cards, networking gear, and other electronics will follow, with new inventory shipments arriving at higher landed costs.
Home Improvement & Appliances: “Modest” Price Increases
Home Depot, which reported strong quarterly results this week, confirmed it will roll out “modest” price increases on tariff-affected items. Products such as refrigerators, washing machines, and power tools—all reliant on metal or copper inputs—are expected to creep upward in price.
The retailer had absorbed costs earlier this year, but analysts say that buffer is now gone. Consumers should expect fewer discounts and promotions as stores adjust.
Retail Chains: Target More Exposed Than Walmart
According to analysts, Target may need to raise prices nearly 8%, almost double the 4–5% projected for Walmart.
The difference? Target sources about half its products from imports, compared to Walmart’s one-third. That heavier reliance on overseas supply chains leaves Target more vulnerable to the current tariff wave.
Fast Fashion & E-Commerce: Duty-Free Loophole Ends
Starting August 29, the $800 de minimis exemption for duty-free low-value shipments disappears.
This change will hit fast-fashion e-commerce platforms like Shein and Temu especially hard, where millions of small parcels previously slipped into the U.S. without tariffs. Now, those orders will face customs duties, fees, and delays.
European postal services have already begun pausing U.S. shipments in preparation for the change, signaling immediate disruption in cross-border shopping.
Consumers Already Shifting Buying Habits
Government data shows retail sales rose 0.5% in July, as shoppers pulled forward purchases of autos and furniture before tariffs pushed prices higher.
- Auto sales jumped 1.6%, reflecting buyer urgency.
- Electronics dipped, as consumers hesitated amid higher costs.
Inflation Outlook
The Congressional Budget Office estimates tariffs will add 0.4 percentage points to U.S. inflation through 2026. Research from Yale suggests the 2025 tariff package could result in a 1.8% overall increase in consumer prices if fully passed along.
With the holiday shopping season approaching, economists expect price hikes in electronics, appliances, apparel, and home goods to become more visible.
Shelbyville NOW Takeaway
The tariff wave has moved from policy to pocketbook. From a $50 price jump in PlayStations, to higher costs at Home Depot and Target, and soon the end of duty-free small parcels, American shoppers face a new normal of higher costs and fewer bargains.
For Tennessee families planning big purchases—or even stocking up for Christmas—the advice is simple: buy sooner rather than later. Prices are unlikely to go down anytime soon. The people of Bedford County will not be excempt from these price increases. A rough road is ahead for the retail stores.
👉 Stay tuned to Shelbyville NOW for continuing coverage on how national trade policies are affecting local households, businesses, and retailers right here in Middle Tennessee.
