While the U.S.-China trade dispute continues to shake the global market, let’s talk about the impact it has on the consumers.
U.S. President Trump last week on this Twitter account mentioned his plan to increase tariffs on $200 billion worth of Chinese goods. From 10%, Trump raised it to 25%. China then hit back with 5% to 10% duties on U.S. goods worth $60 billion.
Consumers will bear the burden
Report from the National Retail Federation’s monthly Global Port revealed that imports at the nation’s major container ports will see high levels. NRF’s senior vice president of government relations said, “you can only have so much inventory. consumers will end up shouldering most, if not all, of the added costs”.
Consumers will see higher prices on items such as luggage, mattresses, food and cleaning products. The University of California, Davis professor of economics Katheryn Russ said import prices on these goods will rise in a month or so.
More consumer-focused items including sporting goods, camping equipment, clothing, shoes, and electronics such as TVs, and game consoles will also bear additional costs in early fall, Russ added. She recommends making a purchase of these goods before the next waves of tariffs hit.
“It’s just getting more expensive,” added Michael Bonebright, a senior blog editor at comparison shopping site DealNews.
The 25% tariff on China imports will increase the price of an iPhone XS, according to a note from J.P. Morgan. From the current price of $1,000, it will increase to $1,142, so it makes sense to make a purchase now.
Prices of TVs are also expected to rise, as well as everyday purchases including frozen goods, diapers and paper towels.
“Stock up now, so you don’t get sticker shock two or three months down the line,” Bonebright said.
Also read: Why Currencies Trade Against the U.S. Dollar
