Tariff Hikes Impact Back-to-School Essentials

(From U.S. Chamber of Commerce) Higher tariffs are driving up costs on back-to-school essentials like backpacks, pens, and paper, with rates rising from 5% to 18% year-over-year — an estimated $73 million tax increase on these items. In May and June alone, clothing tariffs have surged, averaging over 25%, resulting in a $1.9 billion tax increase. Meanwhile, food costs have been hit with $1.9 billion in additional federal taxes over the same period. While wholesalers and manufacturers have absorbed much of the impact so far, consumers are expected to bear more of the burden in the coming months.

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