As you may have recently seen in the news, the U.S. is preparing to hit China with more tariffs totaling $300 billion on imported goods. Until now, the tariffs that have been put in place have primarily impacted businesses, but not the individual consumer. That will change if the U.S. implements the new tariffs.
The Office of the U.S. Trade Representative released the list of affected items. The list includes almost 4,000 product categories, some of which would be taxed up to 25 percent. The list consists of items that U.S. consumers spent more than 1 billion dollars in 2017. According to government research, $44.5 billion were cell phones, $37.2 billion were laptops, and $12.2 billion were toys.
Other Items Affected
- Houseware: LED lamps, flags, microwave ovens, bed linens, hair dryers, kitchenware
- Clothing: Shoes, sweaters, gloves, sunglasses, T-shirts, bras, wigs
- Tech: Flat screen TVs, copiers, smartphones, batteries, cameras, loudspeakers
- Sporting: Golf clubs, water skies, fishing rods, bike parts, firearms
- Meat: pork, rabbit, beef products
- Seafood products
- Other foods: milk products, cereals, sugars, bread, soy sauce, beverages, vinegar
These are just a fraction of the products that will impact the everyday consumer. The list also includes fertilizers, inorganic chemicals, mineral fuels, ores, and other raw materials.
We are in a waiting game at this point. China has already enacted $60 billion in tariffs against U.S. goods. These tariffs will start taking effect in June. While the U.S. has not fully decided to implement all of the proposed tariffs, it has begun to take the steps necessary to achieve them.
As a result, the stock market has already begun to feel the effects of the continued trade war. The Dow Jones Industrial Average was down 617 points or 2.4%, and the Nasdaq fell 3.4% at the close on Monday. The U.S. is hoping to get better trade deal terms with China at the end of this.
For the time being, everyday products may get more expensive. Speaking from the tech world, new products will cost more to import as will replacement parts. This could push a surge to repair existing electronics, which could cause an increase in demand. If you are considering getting your devices repaired, you may save money, in the long run, doing it sooner rather than later.
If you found this article interesting or helpful, check out our other posts!