US President Donald Trump has enacted a new 10% across-the-board tariff on all Chinese goods, effective immediately. Economists warn that this move will hurt American businesses and consumers, who are still recovering from sharp inflation in recent years.
The tariffs, which apply to all Chinese imports, will be paid by US importers, not the countries where they are manufactured. These costs are typically passed on to retailers and eventually American consumers.
Several categories of goods already faced tariffs before Tuesday’s announcement, including electric vehicles (100% tariff) and steel and aluminum products (25% tariff). However, some items were exempt from tariffs, such as consumer electronics.
Consumer electronics, which accounted for 12% of the US’s $401 billion in imports from China last year, are no longer exempt. This includes goods like cellphones, TVs, and satellites.
The increase will likely affect shoe prices, as the footwear industry is highly dependent on imports from China and Vietnam. The Footwear Distributors and Retailers of America warned that tariffs would “drive up prices” and be “totally counterproductive.”
Prices may not rise immediately, but as inventories clear out and new Chinese items arrive in the US, consumers will start to feel the impact. Some retailers may absorb the higher costs, while others may pass them on to customers, leading to potential price increases in the near future.
Source: https://edition.cnn.com/2025/02/04/economy/tariff-increased-costs-china/index.html