KEY TAKEAWAYS
- As the trade war between the United States and China escalates, President Donald Trump has increased the total tariffs on Chinese goods to 145%.
- Importers will likely pass these increased costs onto American consumers, making items like electronics and appliances more expensive.
- Additionally, the elimination of a rule for low-value goods from China may increase the prices of clothing from Temu and Shein.
As the trade war between the United States and China escalates, electronics and appliances could become more expensive for Americans.
President Donald Trump has paused his “retaliatory” tariffs on most foreign imports. However, he has raised the total tariffs levied against Chinese goods to 145% in response to Beijing imposing its own retaliatory tariffs on U.S. goods.
That will likely increase the costs of Chinese-made goods as importers will likely pass those costs onto American consumers, economists say. China is the U.S.’s top supplier, making up 16.5% of imports into the U.S., according to the Office of the United States Trade Representative.
In 2024, the top imports from China were electrical machinery and equipment, such as microchips, phones, and batteries. The second biggest imports include nuclear reactors, boilers, and other machinery; these imports are typically used in things like factories, hot water heaters, refrigerators, and dishwashers.
The Top Imports From China Will Likely Become More Expensive Under Trump’s Tariffs | |
---|---|
IMPORTED GOOD DESCRIPTION | TOTAL MONETARY WORTH OF IMPORTED GOODS (in billions) |
Electrical machinery and equipment | $118.82 |
Nuclear reactors, boilers, machinery and mechanical appliances | $78.83 |
Toys, games and sports equipment | $30.09 |
Plastic articles | $19.16 |
Furniture, bedding and cushions | $18.56 |
Vehicles | $16.40 |
Articles of iron or steel | $11.94 |
Optical, photographic, measuring, checking, precision, medical or surgical instruments | $11.77 |
Knitted or crocheted clothing | $9.99 |
Footwear | $9.77 |
Additionally, low-cost Chinese clothing retailers like Temu and Shein were once able to ship low-value goods to the U.S. duty-free through the de minimis exemption. This made shipping cheaper for the discount retailers, which helped keep costs low for American consumers.
However, starting May 1, Trump ordered this rule to be eliminated on products from China. Postal packages from China below $500 value will have a 90% tariff or $75 per item starting May 2.
Correction, April 11, 2025: A previous version of this article misstated the scale for the table. It’s billions.
Leave a Reply