The tariff threat on consumer goods is back on.
After one month of truce, President Donald Trump announced by tweet he would impose a 10% tariff on $300 billion in Chinese imports that aren’t yet subject to U.S. duties — even as the two economic superpowers are continuing their trade talks.
Last time Trump made that threat, in May, his administration published a list that included consumer and technology goods spanning Apple Inc.’s major products such the IPhone, toys, shoes and children’s clothing. While the final list hasn’t yet been released, leading trade groups are already criticizing the move, saying it would be a direct hit on American consumers. “We are dismayed,” Footwear Distributors and Retailers of America Matt Priest said in a statement.
The new import taxes, which Trump later said go could “well beyond” 25%, would target industries that had been relatively spared so far in the trade war if they’re imposed Sept. 1. Here’s some Bloomberg coverage on what the impact would look like:
Apple
Apple spent decades building one of the largest supply chains in the world. The company designs and sells most of its products in the U.S., but imports them from China after assembly. That makes it one of the most exposed companies to tariffs.
Tariff tradeoff: Raise iPhone prices or suffer margin hit Apple warns of risks as China supply chain exposed Consumer Goods
In a statement after Trump’s tweet on Thursday, the National Industry Leaders Association said the latest tariff announcement puts American consumers “squarely in the crosshairs.”
“Tariffs are taxes on American consumers. And if these tariffs happen, American consumers will bear the brunt of these tactics via higher prices on everyday items like clothing, toys, home goods, and electronics,” the trade group said.
From May: Trump’s China tariff grenade puts shoppers back on notice
The average American consumer is finally getting pulled into the trade war
Small businesses feel the squeeze
Coach bags languish in Vietnam port in painful tariff workaround
New tariffs are a setback for P&G plant in Trump country
From June: J.C. Penney says women apparel would bear the brunt of proposed tariffs
Suppliers
China will see more factory shutdowns as the trade war that’s roiled the global supply chain exacerbates an exodus, Spencer Fung, chief executive officer of Li & Fung Ltd, said last month.
The world’s largest supplier of consumer goods says China’s factories are getting “urgent and desperate”
Source: financialexpress.com