The U. S. decision to hike duties on Chinese goods will weigh heavily on consumers in the form of higher prices soon. Here’s how to prepare.
Going to the store is about to get more — and possibly a lot more — expensive.
As trade tensions between the U. S. and China escalate, with both sides increasing tariffs on a widening selection of products, American consumers will see higher prices as soon as this summer.
Tariffs on goods traded between the U. S. and China have already increased in several stages since early 2018. Now, President Donald Trump has added a 25% tariff (up from his original proposal of 10%) on another $200 billion worth of Chinese imports, and China hit back with 5% to 10% percent duties on another $60 billion worth of U. S. goods.
The president has said that China will bear the brunt of the costs from the tariffs, yet experts say the burden will land squarely on U. S. consumers. (Exactly how those higher prices are passed on depends on a number of factors, including whether suppliers absorb the additional cost, source production in another country or increase prices.)
«The supply chain will try to absorb as much of the blow as they can, then they will move those costs forward to consumers,» said David French, senior vice president of government relations at the National Retail Federation. In preparation, retailers are stocking up on merchandise.
Imports at the nation’s major container ports are expected to see unusually high levels for the remainder of this spring and through the summer, according to the NRF’s monthly Global Port Tracker report.
However, «you can only have so much inventory,» French said.
