When tariffs meet prices in the checkout line

Tariffs are adding a new layer of uncertainty to everyday prices. What happens next will hinge on policy choices, how companies react and how shoppers respond.

Matthew Higgins, a business economist at Tulane University’s A. B. Freeman School of Business, can discuss how those costs move from ports to consumers—and what that means for the broader economy.

What US consumers can expect from new tariffs on imported goods
American businesses and consumers soon will have a better idea of how President Donald Trump’s foreign trade agenda might affect them.

Why this matters now:

• A tariff is a tax at the border. Importers pay first, then decide how much to pass on. Prices on targeted imports will rise — the question is how much and how fast.
• If there’s no good substitute, families tend to buy less of the item, cut other spending, tap savings or use more credit.
• Many firms stocked up before the deadline, so increases will arrive in waves as old inventory clears.
• Small and local businesses, especially restaurants, have little room to absorb higher costs.

"A tariff is a tax that starts at the border and ends at the register. Importers pay first, but when there aren’t good substitutes, most of the bill lands on U.S. shoppers. Timing is everything. We need a full purchasing cycle before the price picture is clear." Higgins said.

For interviews, contact Roger Dunaway a roger@tulane.edu or 504-452-2906.