Prices are about to jump for a lot of consumer goods, thanks to President Donald Trump’s trade war with China.
The president has added a 25-percent tariff on another $200 billion worth of Chinese imports, and China responded with 25-percent duties on another $60 billion in American goods — and that will hit U.S. consumers as soon as this summer, reported NBC News.
Trump insists China will bear the brunt, but economic experts say he’s exactly wrong.
“The supply chain will try to absorb as much of the blow as they can, then they will move those costs forward to consumers,” said David French, senior vice president of government relations at the National Retail Federation.
Retailers are stockpiling merchandise in hopes of riding out a trade war, but those supplies will eventually run out — and consumers will pay more.
Consumers are already paying up to 225 percent more for imported washing machines, thanks to tariffs imposed last year, and a report from Oxford Economics estimated that tariffs could cost every American household about $800.
Those costs will hit cleaning products, diapers, food, luggage and mattresses in about a month, and additional tariffs could raise costs on camping equipment, clothing, shoes and sporting goods.
Consumer electronics — including computers, TVs and video game consoles — will also get more expensive. A new iPhone could cost about $160 more, according to analysts.
“If you were planning a large purchase six weeks from now, you may want to make that purchase today,” French said.