U.S. consumers to be hurt by tariffs
Prices for everything for Christmas lights to bikes to go up .
President Donald Trump said Monday that China is paying the U.S. billions of dollars in tariffs as he ramps up his trade war with Beijing. But that's inaccurate: American consumers and businesses are the ones who will be paying higher costs for imports after he slapped penalties on $200 billion in Chinese goods.
The duties, which go into effect Sept. 24, amount to a 10 percent tax on everything from Christmas lights to bicycles and are likely to be passed on to consumers ahead of the holiday shopping season.
“Every time this trade war escalates, the risk to U.S. consumers grows,” National Retail Federation President and CEO Matthew Shay said following the tariff order Monday.
With orders already onboard ships headed to U.S. ports, retailers like Walmart and Target who source heavily from China will face the additional 10 percent tariff on many imported items starting next Monday. That tax will rise to 25 percent on Jan. 1, making it increasingly hard for stores to avoid passing the costs onto their customers.
The products include canned mandarin oranges, rawhide for pets, hair-care products, dog leashes and dog collars, luggage, handbags, wrapping paper, gas grills, makeup mirrors, vacuum cleaners, toothbrush replacement heads, razors, air conditioners, futons, patio furniture, wooden furniture and mattresses among others, according to a list released by the administration earlier this year.
As expected, Beijing on Tuesday met Trump’s move by announcing plans to slap duties on another $60 billion worth of U.S. exports. That in turn is expected to prompt Trump to target another $267 billion worth of Chinese goods, as he warned Monday night he would do.