Costs by Trump's 10% inches to all Chinese goods
Costs by Trump's 10% inches to all Chinese goods
Do you need a new computer, television or a smartphone? Then it could make sense to consider buying now.
planned customs fees on Chinese goods
President Donald Trump announced on Tuesday that from February 1, a general custom of 10 % could be introduced to Chinese goods. In contrast to Mexico and Canada, which can largely export duty-free due to the USMCA trade agreement, many Chinese products are already affected by tariffs. Trump also threatened to charge tariffs of 25 % on goods from Mexico and Canada from February 1st.
Current customs situation for Chinese products
Currently Chinese were subject to 100 % inches on electric vehicles and a 25 % customs on steel and aluminum products. However, many articles were excluded from tariffs. The biggest exceptions include consumer goods such as consumer electronics. If Trump does his project, however, this would no longer apply.
importance of consumer electronics
This is crucial, because consumer goods, especially entertainment electronics, are among the main goods that the United States imported from China last year, as can be seen from the federal government's merchant data. At $ 47 billion, communication devices made up for the largest proportion of $ 401 billion that the United States imported from China last year.
top imported products from China
Communication devices include everything from mobile phones to televisions to satellites, based on the US government's categorization system. The second largest product group that the United States imported from China last year was computer devices that made $ 39 billion. These include tablets, laptops, monitors and all components that drive these devices, such as semiconductor chips and network interface cards.
This is followed by the category of "other industrially manufactured goods", which is rated $ 37 billion and includes toys, jewelry, silver goods and sports equipment.
effects of the customs increase on consumers
How many consumer goods have so far been able to escape the tariffs on Chinese imports. But when will consumers get the effects of 10 % inch? Even if Trump implemented his project and raised the tariffs on February 1 to all Chinese products, it could take a while for the prices for these goods to increase. Some retailers could be able to intercept the higher customs costs, especially if they were able to invest additional stocks in advance.
Others, on the other hand, could not bear these increased costs, which would lead to consumers would have to expect higher prices at short notice if the tariffs rise to Chinese goods.