key takeaways
- As the trade war between the United States and China increases, President Donald Trump has increased the total tariff on Chinese goods by 145%.
- Importers will possibly pass these increased costs on American consumers, making items such as electronics and equipment more expensive.
- Additionally, eliminating a rule for low-value goods from China can increase the prices of clothes from Temu and Shin.
As the trade war between the United States and China grows, electronics and equipment can be more expensive for Americans.
President Donald Trump has stopped his “repayment” tariff on most foreign imports. However, in response to Beijing, they have increased the total tariffs imposed against Chinese goods by 145%, which apply their retaliation on American goods.
Economists say that the cost of Chinese -made goods will probably increase as importers will pass those costs on American consumers. According to the office of the United States trade representative, China is the top supplier in the US, which imports 16.5% to the US.
In 2024, top imports from China were electrical machinery and equipment, such as microchips, phones and batteries. The second largest imports include nuclear reactors, boilers and other machinery; These imports are commonly used in factory, hot water heaters, refrigerators and things such as dishwashers.
Top imports from China under Trump’s tariff will become more expensive | |
---|---|
Imported good details | Total monetary values of imported goods (in billions) |
Electrical machinery and equipment | $ 118.82 |
Atomic reactor, boiler, machinery and mechanical equipment | $ 78.83 |
Toys, sports and sports equipment | $ 30.09 |
Plastic article | $ 19.16 |
Furniture, bed and cushion | $ 18.56 |
Vehicles | $ 16.40 |
Iron or steel articles | $ 11.94 |
Optical, photographic, measurement, check, precise, medical or surgical tool | $ 11.77 |
Woven or crocheted dresses | $ 9.99 |
Shoes | $ 9.77 |
Additionally, low-cost sugar clothing retailers such as Temu and Shin were able to ship the low-price items in the US duty-free once through the DE minimis discount. This made shipping cheaper for discount retailers, which helped to keep the cost low for American consumers.
However, from 1 May, Trump ordered the rule to terminate the rule on products from China. A 90% tariff or $ 75 per item in postal package from China below $ 500 price will start from May 2.
Correction, April 11, 2025: The previous version of this article declares the scale for the table. It is billions.