Rising Household and Consumer Costs

The cost of living, already a major concern for Americans, increased in 2025. After decades of increasingly free global trade, President Trump imposed new tariffs on the majority of U.S. trading partners in 2025, targeting major manufacturing countries. The U.S. sources many household goods, appliances, and consumer electronics from overseas, and as countries set retaliatory tariffs on the U.S., consumers saw price increases for both foreign and domestically produced goods. The large-scale, broad application of tariffs further fueled ongoing inflation. Prices have risen about 25 percent since the COVID-19 pandemic began in 2020. And while median wages have matched inflation, the lowest-paid workers have seen little to no wage gain in the last five years.

Rising prices have direct impacts on communities and could lead to significant economic challenges for U.S. households, small businesses, and industries. Tariffs are already imposing major burdens on local economies. To prepare, planners may need to identify new economic development strategies that are resilient to tariffs and rising costs.