Trump’s 15% tariffs on $112B in Chinese goods take effect , The Trump administration’s latest round of tariffs on Chinese imports took effect early Sunday, potentially raising prices Americans pay for some clothes,
The 15% taxes apply to about $112 billion of Chinese imports All told, more than two-thirds of the consumer goods the United States imports from China now face higher taxes .
The administration had largely avoided hitting consumer items in its earlier rounds of tariff hikes.But with prices of many retail goods now likely to rise, the administration’s move threatens the U.S. economy’s main driver: Consumer spending.
As businesses pull back on investment spending and exports slow in the face of weak global growth, American shoppers have been a key bright spot for the economy. After Sunday’s tariff hike, 87% of textiles and clothing from China and 52% of shoes will be subject to import taxes.
To try to force Beijing to reform its trade practices, the Trump administration has imposed import taxes on billions of dollars’ worth of Chinese imports, and China has retaliated with tariffs on U.S. exports.
The president has insisted that China itself pays the tariffs. But in fact, economic research has concluded that the costs of the duties fall on U.S. businesses and consumers. Trump had indirectly acknowledged the tariffs’ impact by delaying some of the duties until Dec. 15, after holiday goods are already on store shelves.
A study by J.P. Morgan found that Trump’s tariffs will cost the average U.S. household $1,000 a year. That study was done before Trump raised the Sept. 1 and Dec. 15 tariffs to 15% from 10%.
The president has also announced that existing 25% tariffs on a separate group of $250 billion of Chinese imports will increase to 30% on Oct. 1.