Aside from his war on DEI programs, President Donald Trump has also taken aim at something else we’re not sure he knows much about: tariffs. Now that he’s launched a trading war on China, one of our biggest trading partners, the country responded with their own strategy.
Trump announced Wednesday his plans to impose an additional 34 percent percent tariff (a tax on imported goods) on all goods imported from China, which the White House claims is aimed at controlling the circulation of illegal fentanyl. This places Chinese goods subject to tariffs to be raised well over 50 percent, per USA TODAY. In retaliation, China responded by imposing their own 34 percent tariff on American goods.
“This practice of the U.S. is not in line with international trade rules, undermines China’s legitimate rights and interests, and is a typical unilateral bullying practice,” China’s finance ministry said in a statement.
While China’s economy can take a hit if U.S. products become too pricey for demand, the every day shopping American will also be impacted. The trade war will go into effect by April 10. Here’s what to know about how it will effect us.
Tech Products
Popular, widely sold technological products including iPhones and some television brands may face spiked prices due to tariffs.
“Apple produces basically all their iPhones in China and the question will be around exceptions/exemptions on this tariff policy if those companies are building more operations/factories/plants in the U.S.,” said Wedbush analyst Dan Ives in an April 2 research note, per CBS News.
Clothes and Shoes
Many of the clothes and shoes we buy from major markets like Target and Walmart clothing have been manufactured in China and may take a hit from the tariffs as well.
According to data from the U.S. International Trade Commission, 100 percent of all footwear is imported from outside the country with 37 percent imported from China. Brands we love like Steve Madden have even begun reducing goods they import from China by 45 percent as of last year, CNBC reports.
Furniture
About 30 to 40 percent of furniture sold in the U.S. was manufactured in China which could also face inflate prices, per CNBC. Home Furnishings Association CEO Shannon Williams told the outlet retailers would be forced to consider moving supply chains to other countries such as Vietnam. However, the tariffs could still raise prices of couches and tables by thousands.
Toys
Looking for something to give the kids for their birthday? That might be more difficult, as 80 percent of toys imported to the country were made in China, per the Toy Association.
“If this were to happen, parents could be pushed to buy less expensive, non-compliant toys from unsanctioned, online sellers. These toys often do not meet U.S. safety and quality standards and could be toxic and dangerous to children, putting them at risk. Toys produced by the U.S. toy industry are compliant with rigorous safety and quality standards, and we hope they will remain affordable to American families and not subject to tariffs,” The Toy Association said in an email to CNBC.