9% Surge in Back-to-School Prices: Parents Face Sticker Shock as Tariffs Drive Up Costs on Apparel and Accessories

Parents like Lisa Ward, a finance professional based outside Atlanta, are experiencing price hikes while shopping for back-to-school essentials, particularly in footwear.

“The prices were at least $10 or $20 more than last year, and that really irked me,” said Ward as she purchased two pairs of sneakers for each of her growing 15-year-old sons, resulting in an unexpected expenditure of $300.

This upward trend is not isolated; many parents are encountering sticker shock during this shopping season. According to data from Klaviyo, a publicly traded customer relationship management firm that analyzes billions of dollars’ worth of transactions annually, online prices for apparel and accessories such as shoes, bags, and belts have risen by 9% year-over-year in July.

The increase in average order values has been observed on nearly two out of three apparel sites (or 64%) during this back-to-school season. Discounts, however, have dropped by four percentage points compared to last year, as reported by Klaviyo, which represents more than 170,000 brands.

Jake Cohen, head of industry and insights at Klaviyo, attributes these higher prices to the ongoing trade war. “Tariffs have driven prices up. Brands are trying to create margin, and the simplest way to do that is to raise prices,” Cohen explained.

Many articles of clothing and accessories are produced outside the United States, leaving them vulnerable to the Trump administration’s tariff strategy. President Donald Trump has significantly increased tariff rates on imported goods to levels unseen in nearly a century.

The price increases reported by Klaviyo exceed the official statistics from the Bureau of Labor Statistics (BLS). While overall prices increased by 2.7% year-over-year in July, according to the Consumer Price Index compiled by the BLS, apparel prices were relatively stable (-0.2% in July), with some categories like boys’ apparel (1.9%) and footwear (0.9%) showing increases.

The discrepancy between Klaviyo’s data and that of the BLS may be due to the former’s focus on e-commerce transactions over store prices. However, monthly producer prices surged in July by the most in three years, with prices on apparel wholesaling climbing 5% and the apparel, jewelry, footwear, and accessories retailing category spiking 8%.

Alberto Cavallo, a professor at Harvard Business School, concurs that the 9% increase in year-over-year prices on apparel and accessories is not unreasonable based on his research into tariff impacts. According to Cavallo’s research, as of August 8, imported goods cost 5% more, and domestic goods cost 3% more than pre-tariff trends predicted.

Some items for college students moving into dorms and off-campus apartments are also becoming costlier. For instance, prices for household appliances have risen by 6%, according to the Harvard Business School Pricing Lab, while furniture is 5% above the pre-tariff trend. The lab also found that prices for “other articles of clothing and clothing accessories” have jumped by 10%, including a 12% increase in imports.

“Although tariffs are often expected to produce a one-time jump in price levels, our research shows that firms rarely pass through the full cost immediately,” Cavallo said. Instead, they tend to raise prices gradually, especially when there is uncertainty about the duration and breadth of the tariffs.

These higher prices are prompting some Americans to adjust their shopping habits. According to a Bankrate survey, almost one in three (30%) back-to-school shoppers are changing the way they shop due to inflation, which is down from 41% in 2022 but consistent with 32% in 2019 prior to the presidential election.

Ward has attempted to save by opting for used clothes and taking inventory of the school supplies she already has on hand. “I think the higher prices are due to tariffs and just greed, to be honest. This is an opportunity for everyone to jack up their prices,” Ward remarked. “I just wish the prices would come down and make it easier for parents. You want to do right by the kids, but there’s only so much you can do.”

In a statement, White House spokesman Kush Desai said that real wages have increased, inflation has cooled, and prices for everyday essentials like gasoline and eggs have declined since Trump took office. “As the Administration’s pro-growth policies of tariffs, deregulation, and The One Big Beautiful Bill’s tax cuts take effect and trillions in investments continue pouring into our economy, Americans can rest assured that the best is yet to come as we transition to a new golden age of American Greatness,” Desai said.

Trump’s aggressive trade agenda is unpopular, according to polls. A 61% majority of Americans disapprove of the tariff hikes on imports, while 38% approve, according to a Pew Research poll released last week and conducted prior to tariff hikes that took effect on August 7.

That same Pew poll found that more than twice as many Americans see tariffs as having mostly negative effects on the United States in the coming years (55%) than those who view them as having mostly positive effects (26%).