The news: The trade war between the US and the rest of the world is heating up again, thanks to President Donald Trump’s latest threats to boost universal tariffs and impose stiffer duties on Canada and Brazil.

• The US could impose blanket tariffs of 15% or 20% on most trading partners, the president told NBC News. That’s higher than the current universal duty of 10%.
• President Trump also threatened to enact a 35% duty on Canadian imports starting August 1, citing the country’s alleged failure to prevent fentanyl from entering the US.
• Imports from the EU and Mexico will be subject to 30% tariffs starting on August 1, unless a trade deal is reached prior to the deadline.
• 50% tariffs on imports from Brazil are also scheduled to take effect on August 1—which, if implemented, could have a profound effect on prices for grocery staples like coffee and orange juice.

Consumers feel the strain: Whether or not these duties see the light of day, they add to the general air of uncertainty that is causing consumers to rethink spending.

• Households are on the hook to spend $2,400 more this year purely as a result of the existing duties—which stand at 18%, the highest level since 1934—according to Yale’s Budget Lab.
• Nearly 8 in 10 Americans expect tariffs to affect their household finances, with 41% reporting that they are already eating into budgets, per a survey by Savanta.
• 71% of consumers have changed or will change their buying habits, and 61% have switched to cheaper brands.

Consistent uncertainty: While the University of Michigan’s sentiment tracker ticked up in June thanks to easing fears about the state of the economy, “consumer views are still broadly consistent with an economic slowdown and an increase in inflation to come,” survey director Joanne Hsu wrote.

That recovery in confidence could easily be erased by the latest flurry of tariff announcements, which could prove particularly painful to wallets given that Brazil accounts for 30% of US coffee consumption and is also an important supplier of orange juice, beef, and oil.