Explode prices: Trump surcharge hits US consumers hard

Explode prices: Trump surcharge hits US consumers hard

China, Land - US consumers are currently facing rising prices that are due to a new “tariff surcharge”. This surcharge is a direct consequence of the ongoing customs dispute between the USA and China, which has been worried about President Donald Trump since the term of office. Customers notice this surcharge on their receipt, with products from China in particular.

companies either offset a fixed amount or a percentage surcharge on their products. The Dame, who works in the field of sexual health, raises a “Trump Tatiff Surcharge” of five dollars. Managing Director Alexandra Fine notes that this surcharge does not fully cover the additional costs actually, but should also be a statement in order to make the effects of political decisions visible. Products from lady are produced in China, where tariffs from up to 145 percent are currently being imposed on imports.  OE24 reports that this surcharge can be observed in various industries, including in the clothing and the auto industry.

escalation in the customs dispute

The customs dispute between the two countries has reached a new escalation level. In response to the tariffs of 104 percent to Chinese goods introduced by Trump, China levied an additional tax of 50 percent to US imports. This means that the total tariffs on American goods amount to 84 percent. This is followed by Trump's decision to increase the US tariffs to Chinese products to 125 percent, while he paused higher tariffs for other countries for 90 days in order to maintain a fundamental tariff of 10 percent to all countries. These surprise measures take severe trade and business.  NBC News emphasizes that China's response to Trumps is aggressive trading policy.

The Chinese Ministry of Foreign Affairs criticized the high US tariffs as "abnormally high without practical economic significance". The increasing trade barriers already have a noticeable effects: Cars, such as the Tesla models and X, can no longer be ordered for the Chinese market. In addition, China could switch to other countries in agricultural products in the future, which could particularly affect the US farmers, since US soybean exports to China have already been reduced by 75 percent after a 25 percent retaliation was introduced.  Tagesschau reports that both nations hardly seem to be interested in calming down the situation.

long -term effects for both countries

The consequences of this customs war could not only increase the prices for consumers in the USA, but also have a lasting impact on trade relationships between the two countries. Analysts estimate that it will be complex for the USA to find alternative trade routes, since many products from China are not produced in the United States. The production costs in the USA are higher, so that many consumers and companies should not find a viable alternative. China has already built alternative supply chains during Trump's first term and imported more soybeans from Brazil.