Consumer electronics and toys will cost more this holiday season due to President Donald Trump’s tariffs that continue to increase prices for American consumers.
The U.S. Supreme Court is weighing whether the president had the legal authority to levy the tariffs without the approval of Congress, but regardless of the outcome, prices likely won’t go down in time for the holiday shopping season, according to two experts from Virginia Tech.
“Even if the court strikes down tariffs, businesses have already absorbed the bulk of tariff costs and are preparing to pass more along to consumers, so prices may rise further regardless of the ruling,” said economist David Bieri.
China manufactures 80 to 90 percent of electronics and toys and face tariff rates as high as 145 percent.
“Consumers are likely to see higher prices on imported electronics, toys and apparel, as these are all categories that rely heavily on overseas manufacturing,” said VT economist Jadrian Wooten.
While the price of the tariffs is generally passed on to the consumer through higher prices or a fee when they check out, Bieri warns that the consumer could be responsible for additional fees when the package arrives, anywhere from $80 to $200 per delivery, sometimes equal to or more than the cost of the item itself.
“That’s because the ‘de minimis’ exemption, which allowed packages under $800 to enter duty-free, ended for China and Hong Kong in May, and for all other countries in August 2025,” Bieri said. “Unless you’re certain about shipping origin and duty payment terms, you may want to stick to domestic retailers or established platforms with U.S. fulfillment.”
If the Supreme Court rules that the tariffs are illegal, businesses that paid them may get rebates. The federal government collected nearly $200 billion in revenues in the first three quarters of the year.
Despite many of the costs being passed on to consumers, they are likely to get the short end of the stick. Experts warn that shoppers should not expect refunds regardless of what the court decides.
“Retailers can’t retroactively adjust prices on goods sitting in inventory,” said Bieri. “The refund process would be administratively messy.”
Trump has already rolled back some of his tariffs on imported grocery store staples like beef, coffee and bananas in an effort to address affordability issues that decimated Republicans in the recent local and state elections.
Shopping early for Christmas gifts is recommended to take advantage of deals and do price comparisons.
“The best strategy is to shop early, compare prices across retailers, and look for pre-holiday sales where stores may discount inventory to stay competitive,” said Wooten.
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Crystal Graham
