These 7 Products May Cost You More After Trump Escalated His Trade War With China
President Trump's controversial trade war with China is heating up. That means consumers may soon have to pay more for goods ranging from furniture to electronics to food and clothing.
It started on Monday, when the Trump administration announced new tariffs of 10% on $200 billion worth of Chinese goods that will go into effect on Sept. 24 and climb to 25% by Jan. 1. The latest round of tariffs means that nearly half of all Chinese imports into the U.S. will soon face levies.
Beijing retaliated on Tuesday with tariffs on $60 billion of U.S. goods, prompting Trump to up the ante yet again, renewing a threat to slap taxes on another $267 billion of Chinese products. Including an initial $50 billion round of tariffs that went into effect over the summer, Trump has enacted or threatened to tax more than $500 billion worth of Chinese goods.
“That’s going to hit the pocketbook of every American family in 2019,” says David French, senior vice-president for government relations at the National Retail Federation, a trade group.
The latest round of levies includes all but 300 items originally proposed by the Office of the U.S. Trade Representative before it held a public comment period over the summer.
Some politically sensitive products were able to dodge the new tariff. Apple gadgets, whose prices are widely followed by the tech press were left off the list, as were goods like bicycle helmets and child safety seats.
Here are the products that will cost you more:
Home Décor and Appliances
Tariffs will hit numerous home appliances, including refrigerators, vacuum cleaners and cooking appliances like plate warmers. Home decor such as lamps and lighting parts as well as wooden furniture, including baby cribs, have also been targeted. Overall prices for furniture are likely to increase 2% to 4%, according to a NRF report, as manufactures eat part of the new tax and pass part on to consumers.
Electronics
While some popular Apple devices were spared, other telecommunications and computer equipment were targeted, including so-called connected devices like modems, internet routers, and smart speakers. A recent Consumer Technology Association study estimated that tariffs on circuit board assemblies and connected devices could result in price increases of as much as 6%, costing overall American shoppers up to $3.2 billion extra each year.
Clothing
Certain types of hats, as well as furs, and many popular clothing fabrics fall under the Office of the U.S. Trade Representative's Sept. 18 list. Given the already tight profit margins on low-end clothing, this could be one of the first product categories to see price increases, says Simon Lester, associate director of the Center for Trade Policy Studies at the CATO Institute.
Travel Goods
Products like backpacks, luggage, wallets, phone cases, handbags, and similar items are included and could see prices increase by 5% to 10%, according to the NRF report.
Food & Beverages
Fruits, nuts, grains, flours, vegetables, and other products like soy sauce, will all face new taxes. The tariffs could notably increase prices for seafood, since they already have low margins. Seafood company Chicken of the Sea "cannot absorb the costs of tariffs and must pass them on to consumers," Chief Executive Valentin Ramirez warned in a Sept. 6 letter to the USTR.
Auto parts
The new tariffs target more than 100 different auto parts, according to the Detroit Free Press. "Raising the prices of vehicles is a real concern," Republican Michigan Gov. Rick Snyder told CNBC Tuesday.
Paper, Personal Care Products, and Just About Everything Else
Personal care and beauty products (make-up, shampoo) are also on the list. Other assorted items – dog leashes, calculators, sporting goods, paper, and pet products are all covered in the latest round of tariffs too.