How Tariffs Add $350 to Your iPhone and $800 to Your Couch
See exactly how tariffs inflate prices on iPhones, avocados, Nike shoes, and furniture. Real HS codes, duty rates, and price breakdowns for 8 everyday products.
Table of Contents
TL;DR: According to the Tax Policy Center, the average US household pays roughly $2,100 per year in higher prices due to import tariffs. This guide traces eight everyday products to their real HS codes and calculates the exact dollar amount tariffs add to the retail price.
This guide walks through iPhones, avocados, furniture, shoes, toys, wine, clothing, and TVs -- with real HS codes, duty rates, and price breakdowns from the Harmonized Tariff Schedule and current tariff layers described in our guide to Section 301 vs. 232 vs. IEEPA tariffs.
How Do Tariffs Actually Increase the Price You Pay?
US Customs and Border Protection (CBP) collects tariffs -- import taxes -- when goods cross the border. The importer pays the duty upfront, then passes the cost through the supply chain to distributors, retailers, and ultimately consumers. According to academic research from the Federal Reserve Bank of New York and Princeton University, importers passed through nearly 100% of tariff costs during the 2018-2019 trade war to US buyers, with foreign exporters absorbing almost none of the increase.
The tariff on any product depends on three factors:
- The HS code classification -- the 6-digit code assigned under the World Customs Organization's Harmonized System that determines the base MFN duty rate.
- The country of origin -- which determines whether additional tariff surcharges (Section 301, Section 232, IEEPA reciprocal) apply.
- The stacking of tariff layers -- multiple tariff authorities can apply simultaneously to the same shipment, and their rates are additive.
For a detailed explanation of how these layers interact, see our guide to US tariffs on China in 2026.
What Does an iPhone 16 Pro Really Cost in Tariffs?
The iPhone 16 Pro retails for $1,199, making it one of the most expensive consumer electronics products affected by US tariff policy on Chinese-origin goods. Apple assembles the device in China (primarily at Foxconn facilities in Zhengzhou and Chennai), though components are sourced globally. Industry analysis from Counterpoint Research estimates that approximately 67% of iPhone component and assembly value originates in China.
Smartphones are classified under HS 8517.13 (telephony handsets for cellular networks). The base MFN duty rate is 0% under the Information Technology Agreement. However, additional tariff layers apply to Chinese-origin goods:
| Tariff Layer | Rate | Applies to iPhone? | Estimated Cost |
|---|---|---|---|
| MFN duty (HS 8517.13) | 0% | Yes | $0 |
| Section 301 (List 1, 25%) | 25% | Currently excluded via USTR exclusion | $0 (if exclusion active) |
| Section 301 (List 4A, 7.5%) | 7.5% | Applies to smartphones | ~$60 |
| Section 122 (global baseline) | 10% | Yes (China origin) | ~$80 |
| IEEPA reciprocal (145% China) | 145% | Struck down by SCOTUS Feb 2026 | $0 (currently) |
When IEEPA tariffs were active (before the Supreme Court ruling), the combined tariff exposure on the Chinese-origin portion of an iPhone reached $350--800+, depending on how component-level origin was calculated. With IEEPA tariffs struck down, the current tariff cost drops to approximately $60--140 per device under remaining Section 301 and Section 122 layers.
Apple has publicly stated it cannot absorb tariff costs of this magnitude without raising retail prices. Even at the reduced post-SCOTUS rates, the tariff component on an iPhone represents 5--12% of the retail price.
"Tariffs on consumer electronics function as a hidden sales tax that falls hardest on middle-class families. The average household doesn't realize they're paying hundreds of dollars more per year because the cost is embedded in the sticker price." -- Kimberly Clausing, Eric M. Zolt Chair in Tax Law and Policy, UCLA School of Law
How Much Do Tariffs Add to Your Avocado Toast?
A plate of avocado toast at a cafe costs $12--16, and every ingredient has its own tariff classification and duty rate that contributes to the final price. The avocados overwhelmingly come from Mexico -- the US imports approximately 80% of its avocados from Mexican growers, primarily from Michoacan.
Fresh avocados are classified under HS 0804.40 (fresh or dried avocados). The tariff picture:
| Component | Origin | HS Code | MFN Rate | USMCA Rate | IEEPA Reciprocal (if active) |
|---|---|---|---|---|---|
| Avocados (Hass) | Mexico | 0804.40 | 11.2 cents/kg | 0% | 25% |
| Wheat bread | US/Canada | 1905.90 | 0% | 0% | 25% (Canada) |
| Olive oil | Italy/Spain | 1509.10 | 5 cents/liter | N/A | 20% (EU) |
| Eggs | US domestic | N/A | N/A | N/A | N/A |
Under USMCA, Mexican avocados enter the US at 0% duty -- a significant benefit of the free trade agreement. However, when IEEPA reciprocal tariffs were active, a 25% surcharge applied on top of the USMCA rate, adding approximately $0.30--0.50 per avocado at wholesale.
For a $14 plate of avocado toast, the tariff component when IEEPA tariffs were active reached approximately $1.20--1.80 per plate when accounting for avocados, imported bread ingredients, and olive oil. With IEEPA tariffs struck down, the USMCA 0% rate applies cleanly, and the tariff cost on the avocado itself drops to zero.
What Tariffs Are Hidden in the Price of an IKEA Sofa?
Furniture tariffs vary enormously depending on the country of origin, making an IKEA sofa a useful case study for understanding how sourcing decisions affect consumer prices. A mid-range IKEA sofa retails for $800--1,500. Upholstered furniture is sourced from a mix of countries, with Vietnam and China as the two dominant manufacturing origins for the US market.
Upholstered seating is classified under HS 9401.61 (upholstered seats with wooden frames). The duty rate depends heavily on origin country:
| Origin Country | MFN Rate | Additional Tariff Layers | Total Estimated Rate |
|---|---|---|---|
| Vietnam | 0% | Section 122 (10%) | ~10% |
| China | 0% | Section 301 List 3 (25%) + Section 122 (10%) | ~35% |
| Mexico (USMCA) | 0% | 0% (USMCA qualifying) | 0% |
| Poland/EU | 0% | Section 122 (10%) | ~10% |
Price impact on a $1,000 sofa from Vietnam: At a 10% combined tariff rate applied to the approximately $400 factory-gate cost (the rest is shipping, retail markup, and domestic costs), tariffs add roughly $40 to the wholesale cost -- which translates to approximately $80--120 at retail after markup. For a Chinese-origin sofa at 35%, the tariff component reaches $140--280 at retail.
When IEEPA reciprocal tariffs were active, Vietnamese-origin furniture faced a 46% reciprocal rate, pushing the tariff cost on a $1,000 sofa to $300--500 -- effectively adding a second sofa's worth of cost in duties alone.
How Do Tariffs Inflate the Price of Nike Running Shoes?
A pair of Nike Pegasus 41 running shoes retails for $140. Nike manufactures approximately 50% of its footwear in Vietnam, 27% in Indonesia, and 18% in China.
Athletic footwear with textile uppers is classified under HS 6404.11 (sports footwear with outer soles of rubber/plastics and uppers of textile materials). Footwear carries some of the highest MFN duty rates in the entire US tariff schedule:
| Tariff Component | Rate | Cost on $140 Shoe (est. $25 FOB) |
|---|---|---|
| MFN duty (HS 6404.11) | 20% | $5.00 |
| Section 122 (global) | 10% | $2.50 |
| Total (Vietnam origin, post-SCOTUS) | ~30% | $7.50 |
Some textile footwear categories under HS 6405.20 face MFN rates as high as 37.5%. On HSRates, you can compare footwear duty rates across all three jurisdictions to see how the same shoe faces dramatically different tariff treatment in the US versus the EU and UK. When IEEPA reciprocal tariffs were active (46% for Vietnam), the duty on a single pair of running shoes reached $16--19 at FOB value -- translating to $25--35 at retail after supply chain markup.
Nike's annual report discloses that the company factors tariff cost increases into retail pricing. The footwear industry broadly has lobbied against tariff increases because the base MFN rates rank among the highest in the HTS, and additional surcharges compound on an already-elevated base.
What Does a Chinese-Made Children's Toy Actually Cost in Duties?
The toy industry illustrates how tariffs disproportionately affect budget-priced consumer goods, particularly those manufactured in China. A $30 children's toy -- say, a building block set -- almost certainly originates in China. Shenzhen and Guangdong province account for approximately 70% of global toy manufacturing. Toys are classified under HS 9503.00 (tricycles, scooters, pedal cars, and similar wheeled toys; dolls; other toys; reduced-scale models).
| Tariff Component | Rate | Cost on $30 Toy (est. $8 FOB) |
|---|---|---|
| MFN duty (HS 9503.00) | 0% | $0 |
| Section 301 List 4A (China) | 7.5% | $0.60 |
| Section 122 (global) | 10% | $0.80 |
| Total (post-SCOTUS) | ~17.5% | $1.40 |
When IEEPA reciprocal tariffs were active at 145% for China, the duty on that same $8 FOB toy reached approximately $12.60 -- more than the manufacturing cost itself. A $30 retail toy carried roughly $5--8 in tariff costs passed through the supply chain.
The Toy Association reported that IEEPA-level tariffs on Chinese toys would have forced retail price increases of 15--25% across the industry, disproportionately affecting budget-priced toys purchased by lower-income families.
How Much Tariff Is in a Bottle of French Wine?
Wine tariffs operate differently from most consumer goods because duty rates are assessed on a per-liter basis rather than as a percentage of value. A $20 bottle of French Bordeaux carries tariffs that most consumers never see on the label. Wine is classified under HS 2204.21 (wine of fresh grapes, in containers of 2 liters or less).
| Tariff Component | Rate | Cost on $20 Bottle (est. $6 CIF) |
|---|---|---|
| MFN duty (HS 2204.21) | 6.3 cents/liter | ~$0.05 |
| Section 122 (global, EU origin) | 10% | $0.60 |
| Total (post-SCOTUS) | ~10.8% | $0.65 |
When IEEPA reciprocal tariffs were active (20% for EU), the total tariff reached approximately $1.25 per bottle at CIF value. For premium wines with higher CIF values, the dollar amount scaled accordingly -- a $50 bottle imported at $20 CIF carried roughly $4 in tariff costs.
The US is the world's largest wine import market by value. The Wine Institute estimated that IEEPA-level tariffs on European wines would have reduced US wine imports by 20--30%, with French and Italian producers absorbing some margin to maintain market share.
What Do Tariffs Add to a T-Shirt and a Pair of Jeans?
Apparel carries consistently high tariff rates. A $15 cotton T-shirt from Bangladesh and a $50 pair of jeans from Mexico illustrate the range:
Cotton T-Shirt from Bangladesh
T-shirts are classified under HS 6109.10 (T-shirts, singlets, tank tops, knitted or crocheted, of cotton).
| Tariff Component | Rate | Cost on $15 Shirt (est. $3 FOB) |
|---|---|---|
| MFN duty (HS 6109.10) | 16.5% | $0.50 |
| Section 122 (global) | 10% | $0.30 |
| Total (post-SCOTUS) | ~26.5% | $0.80 |
When IEEPA reciprocal tariffs were active (37% for Bangladesh), the total tariff rate reached 53.5%, adding $1.60 in duty to a $3 FOB shirt -- more than half the manufacturing cost.
Jeans from Mexico (USMCA)
Denim trousers are classified under HS 6203.42 (men's or boys' trousers, of cotton). Under USMCA, qualifying Mexican-origin denim enters the US at 0% -- provided the yarn-forward rule of origin is met (the yarn must be spun in a USMCA country). Non-qualifying jeans face the standard MFN rate of 16.6%.
How Much Does a Flat-Screen TV Cost in Tariffs?
Television tariffs demonstrate how country of origin creates dramatically different landed costs for the same product category. A 55-inch flat-screen TV retails for $400--600. South Korea (Samsung, LG) and China (TCL, Hisense) dominate the US market. Televisions are classified under HS 8528.72 (reception apparatus for television).
| Origin | MFN Rate | Section 301 | Section 122 | Total Rate |
|---|---|---|---|---|
| South Korea | 3.9% | N/A | 10% | ~13.9% |
| China | 3.9% | 7.5% (List 4A) | 10% | ~21.4% |
| Mexico (USMCA) | 0% | N/A | 0% | 0% |
For a Chinese-origin TV with a $150 FOB value, the current tariff cost is approximately $32 -- adding $50--75 to the retail price after markup. When IEEPA tariffs were active at 145%, the tariff cost on that same TV reached $217 at FOB -- more than the manufacturing cost.
What Is the Total Annual Tariff Cost for an Average Household?
According to the Tax Policy Center, the cumulative impact of all tariff layers costs the average US household approximately $2,100 per year in higher prices. The Tax Foundation's analysis places the figure at $1,900--2,600, depending on consumption patterns.
| Product Category | Est. Annual Spend | Est. Tariff Share | Annual Tariff Cost |
|---|---|---|---|
| Electronics (phones, TVs, laptops) | $1,500 | 5--12% | $75--180 |
| Clothing and footwear | $2,000 | 12--25% | $240--500 |
| Furniture and home goods | $1,200 | 8--15% | $96--180 |
| Food and beverages (imported) | $1,800 | 3--8% | $54--144 |
| Toys and recreation | $600 | 5--15% | $30--90 |
| Automotive parts and accessories | $800 | 5--10% | $40--80 |
| Total estimated | $7,900 | $535--1,174 |
The $2,100 estimate from the Tax Policy Center includes indirect effects -- tariffs on intermediate inputs (steel, aluminum, semiconductors) that raise production costs for domestically assembled goods, not just directly imported consumer products.
Tariff costs hit lower-income households harder. The Peterson Institute for International Economics found that the lowest-income quintile of US households spends approximately 1.5% of after-tax income on tariff-inflated prices, compared to 0.5% for the highest-income quintile. Lower-income households spend a larger share of income on imported consumer goods like clothing, electronics, and toys.
"Tariffs are the most regressive tax in the federal system. They fall hardest on the products lower-income families spend the most on -- clothing, shoes, and basic electronics -- while barely registering in the budgets of higher-income households." -- Erica York, Senior Economist and Research Director, Tax Foundation
Key takeaway: the average American household pays roughly $2,100 per year in higher prices due to import tariffs, with the burden falling disproportionately on lower-income families who spend a larger share of income on imported consumer goods.
How Can Importers Reduce Tariff Costs on Consumer Products?
Several legal strategies exist to reduce tariff exposure on consumer goods. Use the HSRates Duty Calculator to model the financial impact of each strategy before implementing it:
- Source from USMCA countries -- goods qualifying under USMCA enter at 0% MFN with no additional surcharges, as demonstrated by the jeans and TV examples above.
- Use Foreign Trade Zones (FTZs) -- importing components into an FTZ and assembling domestically can change the tariff classification and reduce duty. See our guide on tariff engineering for detailed case studies.
- Apply for tariff exclusions -- USTR maintains an exclusion petition process for Section 301 tariffs. Review active exclusions at USTR.gov.
- Reclassify products accurately -- some products are classified under higher-duty headings when a lower-duty classification is legally correct. Use our HS code search tool to verify your classification. Read our guide on how to classify your product for step-by-step instructions.
- Calculate your landed cost -- before committing to a sourcing decision, run the full landed cost calculation including all tariff layers, fees, and taxes.
Key Takeaways
- The average American household pays roughly $2,100 per year in higher prices due to import tariffs, according to the Tax Policy Center.
- An iPhone 16 Pro carries an estimated $60--140 in tariff costs under current post-SCOTUS rates, and up to $350--800+ when IEEPA tariffs were active.
- Footwear faces some of the highest US tariff rates in the entire HTS -- up to 37.5% MFN before any surcharges.
- USMCA-qualifying goods from Mexico and Canada can enter at 0% MFN duty, making USMCA sourcing one of the most effective tariff reduction strategies.
- Tariff costs are regressive: the lowest-income quintile spends approximately 1.5% of after-tax income on tariff-inflated prices, compared to 0.5% for the highest-income quintile.
- In summary, tariffs function as a hidden sales tax embedded in retail prices, with the biggest dollar impacts on electronics, furniture, and apparel.
Summary and Next Steps
The bottom line: Import tariffs add hundreds of dollars per year to the cost of everyday products for the average American household -- from $60--140 on an iPhone to $80--280 on a sofa to $7.50 on a pair of running shoes. These costs are invisible to consumers because they are embedded in retail prices, but they function as a hidden sales tax that falls hardest on lower-income families.
- The average US household pays approximately $2,100 per year in higher prices attributable to tariffs, according to the Tax Policy Center.
- Footwear and apparel face the highest MFN rates in the US tariff schedule (20--37.5%), while most electronics benefit from ITA duty-free treatment at the MFN level.
- USMCA-qualifying goods from Mexico and Canada enter at 0% MFN with no surcharges -- the most effective tariff reduction strategy for US importers.
- Country of origin is the single most important variable: the same product can cost 35% more from China versus 0% from Mexico.
Use the HSRates duty calculator to check the current total duty rate for any product HS code and origin country. The HSRates comparison tables show side-by-side US, EU, and UK rates for every product category covered in this guide.
FAQ
How much do tariffs add to consumer prices in 2026?
The Tax Policy Center estimates the average US household pays approximately $2,100 per year in higher prices attributable to the current tariff regime. This includes both direct tariffs on imported consumer goods and indirect tariffs on intermediate inputs that raise domestic production costs. The Tax Foundation places the range at $1,900--2,600.
Why are footwear tariffs so much higher than electronics tariffs?
US tariff rates reflect decades of protectionist policy for specific industries. The footwear industry has maintained high MFN rates (20--37.5%) since the original Smoot-Hawley Tariff Act of 1930, while electronics benefited from the 1996 WTO Information Technology Agreement that eliminated tariffs on computers, smartphones, and most electronic components. The result is that a $140 pair of shoes carries more duty than a $1,200 laptop.
Did the Supreme Court IEEPA ruling reduce prices immediately?
The Supreme Court struck down all IEEPA-based tariffs on February 20, 2026. However, price reductions at retail level lag behind tariff changes by 2--6 months because importers, distributors, and retailers hold inventory purchased under the previous tariff regime. Additionally, Section 301 and Section 122 tariffs remain in force, so total tariff rates decreased but did not drop to zero.
How do tariffs affect lower-income households differently?
Tariffs are regressive -- lower-income households spend a larger share of their income on imported consumer goods (clothing, electronics, toys) and a smaller share on services and domestically produced luxury goods. The Peterson Institute found that the bottom income quintile bears approximately three times the tariff burden as a share of income compared to the top quintile.
Can companies absorb tariff costs instead of passing them to consumers?
According to research from the Federal Reserve Bank of New York and Princeton University, importers and consumers bore nearly 100% of tariff costs during the 2018-2019 US-China trade war, with foreign exporters absorbing almost none. Some large retailers (Walmart, Costco) temporarily absorbed partial costs to maintain competitive pricing, but sustained tariff increases invariably flow through to retail prices.
Sources & References
- Tax Policy Center, "How Do US Tariffs Affect Consumers?": https://www.taxpolicycenter.org
- Tax Foundation, "Tracking the Economic Impact of US Tariffs": https://taxfoundation.org/research/all/federal/tariffs-by-country-including-china/
- US International Trade Commission, Harmonized Tariff Schedule: https://hts.usitc.gov
- Federal Reserve Bank of New York, "The Impact of the 2018 Tariffs on Prices and Welfare": https://www.newyorkfed.org
- Peterson Institute for International Economics, "US Tariffs Are an Arbitrary and Regressive Tax": https://www.piie.com
- USTR Section 301 Investigation Records: https://ustr.gov/issue-areas/enforcement/section-301-investigations
- CNN, "Tracking Trump's Tariffs": https://www.cnn.com/business/tariffs