Summer is heating up, and so is inflation, as President Donald Trump’s sweeping tariffs are driving up the cost of your holiday break.
Retail giants, including Walmart, Amazon, and Target, had long warned that Trump’s volatile tariffs would push retailers in the U.S. to raise consumer prices — and it’s finally catching up.
While the Trump administration’s 90-day pause on most tariffs kept prices at bay for a while, inflation has been rising across food, furniture, and appliances since May.
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Consumer prices rose 2.7% in June from a year earlier, according to the U.S. Bureau of Labor Statistics (BLS). As reported by Kiplinger, the core Consumer Price Index (CPI) rose 0.2% month-over-month, putting the overall inflation at its highest reading since February.
Economists argue that the modest increase in prices is due to tariffs, and it could get worse once the Trump administration lifts its pause in mid-August.
Here’s where prices are rising and falling and how it may impact your summer.
The cost of toys is on the rise this summer
If you’re planning on keeping your kids entertained this summer, you’ll have to stock up on outdoor toys.
From teaching your child how to ride a bike, planning on playing softball at the park, or getting sprinklers and beach toy sets to cool down for a day — it’ll all cost you more due to tariffs.
Consumer prices for toys rose for the second month in a row, with inflation up 1.4% from last June. That could get worse in the fall, warned Hasbro CEO Chris Cocks during an interview with CNN. Other U.S. toymakers like Mattel, known for Barbie and Hot Wheels have also cited plans to increase prices due to looming tariffs.
- Earlier this spring, Trump imposed 145% tariffs on many toy imports from China.
- Those tariffs were reduced temporarily to 30% until mid-August.
Why is this important? Nearly 80% of toys sold in the U.S. are sourced from China, according to the Toy Association. The uptick in tariffs could drive nearly 50% of U.S. toy companies out of business.
While some toy makers have stocked up on toys in an attempt to keep prices steady, many may not be able to absorb the price increase dealt by tariffs. So, if you want to purchase toys, now may be a good time to buy at a bargain.
For more details: How Tariffs Will Impact Clothing and Toy Prices in 2025
Summer cookouts and drinks are more expensive
Coca-Cola’s CEO warned of potential price impacts due to tariffs.
(Image credit: Getty Images)
Hosting a summer cookout, dinner with friends and family, or going out into town to eat will cost you more.
Food prices rose 3% on an annual basis last month, higher than the overall inflation rate. Items that saw a big jump since last June included nonalcoholic beverages and beverage materials, which rose 4.4%. The cost of beef increased 2% from a month ago, while eating away from home in June rose by 3.8% year over year.
There was some relief in egg prices, which were 7.4% less expensive than a month ago. Still, eggs are 27.3% higher than last June.
As for costs of appliances, prices jumped by 1.9%, marking the biggest leap since the pandemic. The sharp increase could be a sign that Trump’s tariffs on steel and aluminum are causing businesses to spike their pricing across products.
As reported by Kiplinger, business leaders warned that tariffs on aluminum and steel could drive prices of canned goods for fruits, vegetables, and beverages up. Coca-Cola CEO James Quincey said that the company may increase production of its beverage in plastic bottles, which would impact consumer prices.
That means, getting a coke-float this summer will probably cost you more.
Back around Father’s Day, U.S.-based grilling manufacturers like Stanley Black & Decker also posted price hikes on BBQ supplies due to tariffs.
Some clothing prices are cheaper, for now
Nike announced tariff-related price increases in June across some items of clothing and footwear.
(Image credit: Jakub Porzycki/NurPhoto via Getty Images)
While tariffs pushed up prices in June for food, major appliances, and toys — some categories like apparel appear unaffected, for now.
Consumer costs for apparel dropped 0.5% year-over-year in June, according to the BLS. But some items registered modest price hikes, including men’s shirts and sweaters, which rose 4.3% from May, women’s dresses increased 3.9%, and women’s swimwear increased 1.6%.
Footwear also registered a modest monthly increase of 0.7% from May to June.
Some of those price hikes may be tied to tariff uncertainty.
Nike announced tariff-driven price increases would take effect June 1, 2025, across many of its products as the Trump administration targeted countries with sweeping tariffs. Nike manufactures its products in multiple countries, including China, Vietnam, and Indonesia.
- Adult clothing prices would increase between $2 and $10
- Footwear priced between $100 and $150 would see price hikes of $5
- Children’s items would not be impacted by price adjustments
As summer comes to an end, some states are offering sales tax holidays in time for back-to-school shopping.
Currently, 17 states will celebrate tax-free holidays from July to August. For instance, Ohio’s 10-day sales tax holiday starts on Aug. 1, 2025. Shoppers will be able to purchase certain items like books, electronics, home goods, and plants worth under $500 tax-free.
With inflation on the rise, and tariffs threatening further price hikes on everyday goods, planning your shopping experience this summer can be a good idea.
Stay tuned for more information, as Trump’s tariff pause is expected to lift mid-August.