How Global Trade Policies Affect Everyday Consumers

Sahana Rodomar, Walter Payton College Prepatory, Senior, Spring 2026

Tariffs, which are taxes placed on imported goods, are used by governments to promote domestic industries, as they raise the prices of foreign goods and encourage consumers to buy domestic goods instead. However, recent tariff policies implemented during the administration of Donald Trump have increased tensions with several major U.S. trading partners, including Canada, Mexico, and China. Jing Zhang, a senior economist at the Federal Reserve Bank of Chicago, states that “although the U.S. gains overall from the tariff increase, we find the impact differs starkly across locations,” displaying that while some states benefit, others experience reduced consumer welfare. While these policies were implemented to strengthen America’s industries, it is essential to acknowledge the potential economic consequences they have created. 

One of the most immediate effects, as mentioned before, is rising prices for consumers. The United States relies on imports for everyday products, and tariffs increase these costs. Durlauf, a professor at the Harris School of Public Policy, states, "Consumers are directly affected by having to pay more for goods…approximately 60% of U.S. vegetable consumption comes from Mexico, and 25% of crude oil processed by U.S. refineries comes from Canada…Those, and many other products, will all cost Americans more." (Lee, 2025). Because companies pay more to import these goods, the additional cost is passed directly to consumers. 

Tariffs can also escalate tensions between countries. After the United States introduced new tariffs, other countries imposed their own taxes on American exports, as described by Simon Lockard, a research assistant at USC. Lockard states that in response to the tariffs, “China levied retaliatory tariffs on over 22 billion U.S. goods, mainly targeting agricultural imports such as chicken, soy, and beef” (Lockard, 2025). These retaliatory tariffs not only affect consumers, but also businesses that depend on international markets for production resources. Many international firms also feel discouraged from shipping to the U.S.; one anonymous shopper states, “I’m no longer able to shop on many of the Chinese websites I previously used due to tariffs pressuring them to no longer ship to the U.S.”

Now more than ever, it is important for individuals to stay informed on current economic events, as tariffs display how even foreign policy decisions can directly affect one’s daily life.

Works Cited

news.uchicago.edu/story/how-do-tariffs-work-and-who-will-they-impact-uchicago-experts-explain.

lawforbusiness.usc.edu/tariffs-and-their-role-in-international-relations-and-the-global-economy/.

Interviewees

Anonymous, current high school student and shopper

Jing Zhang, senior economist at the Federal Reserve Bank of Chicago