Rising tariffs on imported goods has prompted many Americans to rethink their purchasing habits, with a growing number seeking out products labeled “Made in the USA” to manage higher prices amid ongoing economic uncertainty.
However, even domestically produced goods are not fully insulated from the broader effects of global trade policy, supply chain disruptions, and persistent inflation.
A November 2024 poll by Morning Consult, conducted for the Alliance for American Manufacturing, found that 60% of Americans made an effort to buy U.S.-made products over the past year. Meanwhile, 82% said they would buy more domestic goods if retailers made them easier to identify.
As of February 2026, a 10% baseline surcharge applies to most imported goods, with the policy currently set to expire in July, unless extended. While this environment may appear to favor retailers focused on U.S.-made products, economists say the impact on pricing and consumer behavior is more complex.
The Made in America Store confirms closure
The Made in America Store, a retailer known for selling exclusively U.S.-manufactured products, has permanently closed its Elma, New York, location after 16 years in operation.
The company said the closure is part of a broader “strategic restructuring” following the decision to sell the building. While the physical store has shut down, the owners emphasized that the brand itself is not going away.
“This is not a goodbye, but rather a strategic restructuring that allows us to thoughtfully plan for the future,” said the company in a public announcement. “It is our sincere intention to reopen a Made in America Store at a new location and time when circumstances allow, so we can continue to serve customers who believe in American-made products and American jobs.”
The retailer also noted that its online store will be temporarily paused during this transition, with plans to relaunch once a new location is established.
Founded in 2010, the Made in America Store built a national reputation as a destination for consumers seeking exclusively domestically manufactured goods. Over time, it also became a regional draw for shoppers wanting to support U.S. production and supply chains.
Retail closures continue to rise across the sector
The closure comes amid broader pressure across the U.S. physical retail sector.
According to CoreSight Research, store shutdowns increased 67% in 2025 compared to the previous year, significantly outpacing new openings. Off-mall retailers accounted for nearly 79% of total closures.
Despite these challenges, Brick-and-mortar retail remains the dominant channel. Physical stores generated approximately $14.4 trillion of the $18.9 trillion in total retail sales in 2025, continuing to outpace e-commerce, according to Euromonitor research gathered by EY.
More coverage on store closures:
- 50-year-old record store chain closing its final location
- CVS warns it may have to close over 100 more stores
- Personal care retail chain quietly closes 92 stores
- 44-year-old gas station chain makes rare closure after 26 years
“It’s clear that the physical store still plays an important role,” said EY Retail Analysts Malin Andrée and Jon Copestake. “Not only do stores have plenty of runway left in delivering revenue, but they also have opportunities to drive new growth and alternative revenue streams.”
Looking ahead, industry analysts at Coresight predict economic conditions may improve modestly in 2026. However, ongoing pressures, including inflation and housing market constraints, are expected to continue weighing on discretionary consumer spending.
Why “Made in the USA” goods are still affected by tariffs
Although American-made products are not directly subject to import tariffs, they can still be affected indirectly through supply chain and pricing dynamics.
Many domestic manufacturers rely on imported raw materials, components, or machinery. When tariffs raise the cost of those inputs, production expenses can increase even for goods assembled entirely in the U.S.
Broader market pricing effects can also play a role. When imported goods become more expensive, domestic producers may adjust pricing accordingly, reducing the gap between imported and U.S.-made products.
Research by the Kiel Institute for the World Economy indicates that U.S. consumers bear the majority of tariff-related costs, with foreign exporters absorbing less than 4%.
“The claim that foreign countries ‘pay’ these tariffs is a myth,” said the Kiel Institute for the World Economy Research Director, Julian Hinz. “The tariffs are, in the most literal sense, an own goal. Americans are footing the bill.”
Inflation pressure and Federal Reserve constraints
Economists also point to broader macroeconomic effects. Rising prices of goods contribute to higher Consumer Price Index (CPI) readings, which can complicate the Federal Reserve’s (Fed) ability to lower interest rates and keep borrowing costs elevated for longer periods.
“Taken individually, lagged tariff pass‑through, tightening labor supply, looser fiscal policy, and accommodative financial conditions would each push inflation modestly higher,” said Lazard CEO and board member of the Peterson Institute Peter Orszag and The Peterson Institute for International Economics President Adam Posen. “Inflation rising above 4% by the end of 2026 is not only plausible but arguably the most likely scenario.”
What “Made in USA” really means
To market a product as “Made in USA,” products must meet strict Federal Trade Commission (FTC) standards requiring that they are “all or virtually all” made in the U.S., meaning that the majority of components and manufacturing processes are domestic.
Even so, the label does not guarantee lower prices or insulation from economic trends.
What this means for consumers
For shoppers, choosing to buy American-made products often comes down to balancing cost, product availability, quality perceptions, and support for domestic manufacturing.
As economic conditions evolve, consumers may continue to face trade-offs between affordability and preference for domestically priced goods. In this environment, careful research and price comparisons remain essential, particularly as tariffs and inflation continue to shape the retail space.
Related: 127-year-old supermarket chain closing more locations
