What Trump's sweeping new tariffs mean for your wallet

Trump's levies on more than 80 countries took effect on Friday.

President Donald Trump's new round of sweeping tariffs on more than 80 countries took effect on Friday, ratcheting up an effort to reconstruct levies struck down by the Supreme Court earlier this year.

Targeted nations face duties of either 10% or 12.5%, depending on the extent of their efforts to address alleged forced labor violations, according to a notice from U.S. Trade Representative Jamieson Greer's office.

The levies began on the same day that a 10% global tariff announced in February was set to expire.

The move risks elevated costs for some household goods and a jolt of economic uncertainty at a time when shoppers and businesses are weathering a bout of resurgent inflation, some analysts said. Still, they added, the policy puts a major swathe of tariffs on new legal footing and may boost federal tax revenue.

Here's what Trump's sweeping new tariffs mean for your wallet and the wider economy:

Importers typically offset the tax burden of tariffs in the form of higher prices for shoppers. The new levy, as a result, threatens to strain household budgets at a time when the Iran war is already pushing up prices.

Prior to the shift in policy last week, the average tariff rate stood at 11.4%, the Yale Budget Lab (YBL) said. After the levies on Friday replaced the temporary across-the-board tariff, the average tariff rate fell slightly to 11.1%.

The average tariff rate is set to rise to 11.8% by the end of 2026 as a result of additional proposed tariffs, however, YBL said.

Trading partners affected by the new round of tariffs account for about 99% of all U.S. imports, but a series of product exemptions will significantly ease the measure's impact, investment bank Macquarie previously told ABC News.

The tariffs include exemptions for some food items, fuel, fertilizers and other products, as well as goods compliant with the United States-Mexico-Canada Agreement, or USMCA, a free trade agreement.

Jim Reid, a research strategist at Deutsche Bank, acknowledged the fresh round of tariffs in a note shared with ABC News on Friday, even as he downplayed the potential economic impact. Trump, after all, moved forward with a far-reaching tariff of around 10% at the same time he lifted a global tariff that matched that rate.

"Perhaps the most important takeaway is how little changes economically," Reid said. "The announcement is less about raising tariff rates and more about preserving them."

In the event that Trump's tariffs stay on the books over the next 10 years, the additional taxes cou