Americans Paying for Trump’s Trade War With China
Former Secretary of Labor Robert Reich explains why Trump’s trade wars hurt the American economy.
- The Trump administration’s latest round of tariffs on Chinese imports took effect early Sunday, potentially raising prices Americans pay for some clothes, shoes, sporting goods and other consumer goods.
- The 15% taxes apply to about $112 billion of Chinese imports.
- More than two-thirds of the consumer goods the United States imports from China now face higher taxes.
As a result of Trump’s higher tariffs, many U.S. companies have warned that they will be forced to pass on to their customers the higher prices they will pay on Chinese imports. Some businesses, though, may decide in the end to absorb the higher costs rather than raise prices for their customers.
After Sunday’s tariff hike, 87% of textiles and clothing from China and 52% of shoes will be subject to import taxes.
On Dec. 15, the administration is scheduled to impose a second round of 15% tariffs — this time on roughly $160 billion of imports. If those duties take effect, virtually all goods imported from China will be covered.
