AS the school year begins for some Americans, some essential materials are going to cost more than before.
The price increase comes as the result of ongoing economic uncertainty, but Target and Walmart have a workaround.
Back-to-school shopping is costly for some consumers this year (stock image)[/caption]
President Donald Trump has continued imposing higher tariffs on several countries this month long after the initial introduction of the global import tax rates in April.
As of Friday, goods in over 60 countries and the European Union (EU) are subject to 10% tariffs, minimum, per AP News.
Items from EU, Japan, and South Korea have a rate of 15%, for example, while Bangladesh, Taiwan, and Vietnam are at 20%.
The White House has issued confidence that the continued tariffs will benefit the economy.
President Trump also said recently that he anticipates investments worth hundreds of billions into the US economy soon, particularly from the EU, Japan, and South Korea.
Additionally, now that companies around the world understand the direction the United States is headed in, the administration believes America can begin reconfiguring itself as a manufacturing hub, creating jobs and more domestic production.
In the meantime, many companies have adjusted for tariff impact, managing increased cost of imports by passing it onto consumers through an uptick in prices for common goods, like back-to-school items, which are about 20% more expensive, according to data from the US Bureau of Labor Statistics analyzed by CNBC.
“At some point, if tariffs come in, there will be price impacts,” Coresight analyst John Mercer told the outlet in July.
“Consumers are right to be concerned.”
CONSUMER CONSIDERATION
According to data from the National Retail Federation, back-to-school spending for 2025, excluding college students, is expected to reach $39.4 billion total.
About 20% of shoppers have also reported that buying back-to-school supplies is putting strain on their budgets, per a study from Bankrate.
At least 39% said told Intuit Credit Karma they couldn’t afford the items this year, and 44% said they’d take on debt to cover it.
Those willing to take on debt for school items is up 10% from 2024.
While consumers navigate price fluctuations, Walmart and Target are offering low prices on a variety of merchandise.
States removing sales tax on back-to-school items
Alabama
July 18-20
What’s tax-free:
Clothing and shoes: $100 or less per item
Computers: $750 or less per item
School supplies: $50 or less per item
Books: $30 or less per item
Arkansas
Aug. 2-3
What’s tax-free:
Clothing and shoes: $100 or less per item, clothing accessories: $50 or less per item
School supplies
Electronic devices used for school
Connecticut
Aug. 17-23 (Always the third Sunday in August to the following Saturday)
What’s tax-free:
Clothing and footwear less than $100
Florida
Florida expanded its back-to-school sales tax holiday to include the whole month of August.
Aug. 1-31
What’s tax-free:
School supplies: $50 or less per item
Clothing, footwear, accessories: $100 or less per item
Computers and related accessories: $1,500 or less
Learning aids and jigsaw puzzles: $30 or less
Iowa
Aug. 1-2
What’s tax-free:
Clothing or footwear: $100 or less per item
Maryland
Aug. 10-16 (Always the second week of August)
What’s tax-free:
Clothing, footwear and accessories: $100 or less per item
Backpacks: the first $40 of a backpack/bookbag purchase is tax-free.
Massachusetts
Aug 9-10
Eligible retail items bought for personal use costing $2,500 or less (not limited to school supplies).
There are several exceptions when tax still applies, including: meals, motor vehicles and boats, gas and electricity, tobacco, marijuana or alcoholic beverages and any single item with a price more than $2,500.
Mississippi
July 11-13
What’s tax-free:
Clothing, and footwear: $100 or less per item
School supplies: $100 or less per item
Missouri
Aug. 1-3
What’s tax-free:
Clothing: $100 or less per item
School supplies: $50 or less per item
Computers: $1,500
Computer software: $350 or less
Computer peripheral devices: $1,500
Graphic calculators: $150 or less
New Mexico
July 25-27
What’s tax-free:
Clothing or shoes: $100 or less per item
Desktop, laptop, tablets or notebook computers: $1,000
Related computer hardware: $500 per item
School supplies: $30 per item
New York
New York does not have a sales tax holiday, but year-round in certain counties, including the county that covers New York City, have no sales tax for clothing and footwear worn by humans that is $110 or less.
Ohio
Aug. 1-14
What’s tax-free:
The tax-free period includes anything that is considered tangible personal property that is $500 or less.
This excludes watercrafts, anything with an outboard motor that must be titled, a motor vehicle, alcohol, tobacco, a vapor product or a product that contains marijuana.
Dine-in meals, which are usually taxed, are also tax-free if they are less than $500.
Oklahoma
Aug. 1-3
What’s tax-free:
Clothing or footwear: $100 or less per item.
Pennsylvania
Pennsylvania does not have a sales-tax holiday, but year-round it does not charge sales tax for clothing and certain footwear.
South Carolina
Aug. 1-3
What’s tax-free:
Clothing, shoes and accessories
School supplies
Computers, printers, earbuds and headphones
Certain bed and bath items
Diapers
Tennessee
July 25-27
What’s tax-free:
Clothing and shoes: $100 or less per item
School supplies: $100 or less per item
Computers, including laptops and tablets: $1,500 or less per item
Texas
Aug. 8-10
What’s tax-free:
Clothing and shoes: $100 or less per item
Backpacks: $100 or less per item
School supplies: $100 or less per item
Virginia
Aug. 1-3
What’s tax-free:
Clothing and shoes: $100 or less per item
School supplies: $20 or less per item
West Virginia
Aug. 1-4
What’s tax-free:
Clothing: $125 or less per item
Laptop or tablet computers: $500 or less per item
School instruction material: $20 or less per item
School supplies: $50 or less per item
Sports equipment: $150 or less per item
SAVE NOW
Walmart specifically committed to lowering the prices on some of its back-to-school collection to be lower than those in 2024.
Target also launched savings promotions throughout the entire summer with prices starting as low as 25 cents on some items, and also promised 2024 pricing on the “top 20 must-haves.”
The top retailers also participate in what some economists say is the best way for Americans to save money on back-to-school supplies this year — tax holidays.
At least 17 states are holding the holidays, with some already finishing and July and others still going on in August.
The holidays remove sales tax on select back-to-school items, making way for parents to afford more of what they need.
Arkansas, Florida, and Ohio all have August tax holidays.
Consumers can also find back-to-school deals elsewhere.
There are at least 18 back-to-school items available at Aldi this week, for example, including a $9.99 portable desk.
Shoppers have also been racing to buy the “perfect” back-to-school essential at Dollar Tree for just $1.25, a price 75% cheaper than a nearly identical offering on Amazon.
