CNBC Reveals How Tariffs Hike Prices: A $30 Sweater Becomes a $58 Luxury

Tariffs and Their Tangible Impact: How Increased Costs Affect Consumers June 3, 2025 – In a recent CNBC report, the impact of tariffs on consumer costs was highlighted using a practical example: a men's cotton sweater manufactured in China. The report demonstrates how tariffs significantly increase the final price consumers pay. Before the implementation of tariffs, the sweater cost $6.80 to produce. With a 41.5% tariff in place, the total cost rose to $10.57, which, with a 65% markup, resulted in a retail price of $30. However, with the current tariff rate at 71.5%, the production cost, including tariffs, jumps to $12.61. This leads to a new retail price of $35.80 – a 19.3% increase. "The current tariff rate is 71.5% of the manufacturing cost, or $4.86," explains CNBC's Courtney Reagan. "This makes the new cost the retailer pays to make that sweater $12.61." Reagan further illustrates the potential impact if the full tariffs announced on April 2nd were enforced. In that scenario, the tariff would increase to 186.5%, raising the cost to $20.43 and the retail price to a staggering $57.97. This CNBC report effectively demonstrates the tangible effect of tariffs on everyday consumer goods. The clear explanation and data-driven approach make it a valuable resource for understanding the complexities of international trade and its impact on household budgets.