Why Prices Keep Rising: Tariffs, Stacked Costs, and the New Reality for Consumers
- Schulz Trade Law
- Dec 24, 2025
- 3 min read
Why Prices Keep Rising:
Tariffs, Stacked Costs, and the New Reality for Consumers
Michelle Schulz explains how baseline tariffs and stacked duties are driving higher prices—from holiday gifts to cars.
In a recent interview on KMOX Radio in St. Louis, Michelle Schulz, founder and managing partner of Schulz Trade Law, joined hosts to explain why consumers are paying more across nearly every product category.
From holiday shopping to electronics and automobiles, Michelle outlined how broad-based tariffs—many of which apply regardless of country of origin—are quietly reshaping prices and leaving consumers with fewer goods for more money.
Baseline Tariffs and Why Everything Costs More
Michelle explained that today’s price increases aren’t limited to a handful of imports or countries. Instead, nearly all imported goods are now subject to a baseline tariff—often starting at 10%—with no minimum value threshold.
“Imported items have really resulted in hyped-up prices… there’s no minimum, so it doesn’t matter what you’re buying—it might be subject to a tariff.”
Even when individual tariffs are paused or adjusted, importers must price goods based on risk and uncertainty. As a result, consumers see higher prices regardless of whether a specific tariff is currently active.
Which Products Are Being Hit the Hardest
Certain categories have seen especially sharp increases. Kitchen goods, electronics, clothing, and shoes are among the most affected, with tariffs stacking on top of one another depending on product components and materials.
“Kitchen goods are up about 38%, electronics about 34%, and clothes and shoes are going up at least 20%.”
Michelle noted that electronics often face multiple layers of duties—base tariffs plus additional tariffs on metals like aluminum, steel, and copper—compounding costs long before products reach store shelves. These increases are already showing up in major consumer purchases such as gaming consoles, appliances, and household electronics.
Confusion, Classification, and Why Prices Rarely Come Back Down
One challenge for both businesses and consumers is that tariffs are rarely itemized at checkout. Many companies fold tariff costs into pricing without disclosing them, making it difficult to track what’s driving increases.
“There are different tariffs by product… every product is categorized by a Harmonized Tariff code, and tariffs can stack upon each other.”
Michelle also addressed whether prices are likely to fall. While some consumers hope reduced demand will force price corrections, she sees a different pattern emerging.
“People are spending more, but they’re just coming away with less.”
Meaningful relief, she noted, would likely require court intervention—specifically a ruling by the Supreme Court of the United States on the legality of the broad emergency-based tariffs currently in place.
Beyond Retail: Cars, Equipment, and Long-Term Impact
Tariffs aren’t just affecting consumer goods. Michelle highlighted rising vehicle prices, increased scrutiny at customs, and reduced demand for new agricultural and industrial equipment.
“Tariffs are directly impacting the price of cars… people don’t want the new ones—they want the old, cheaper ones.”
As costs rise, businesses and consumers alike are delaying purchases, repairing older equipment, and adjusting expectations—signals of longer-term economic distortion rather than short-term price spikes.
Tariffs are no longer an abstract trade issue—they affect pricing, purchasing power, and business planning across the economy.
If your company imports goods and needs clarity on tariff exposure, classification, or cost-reduction strategies, Schulz Trade Law can help you navigate today’s trade landscape with precision and foresight.
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