The Trump government’s most current round of tariffs on Chinese imports has taken effect, possibly increasing prices Americans pay for a few clothing, shoes, sporting goods, and other consumer goods ahead of the holiday buying period.
The 15% earnings apply to approximately $112 billion of Chinese imports. All told, over two-thirds of the customer products, the United States imports from China currently face higher taxation. The government had mostly avoided hitting consumer things in its previous rounds of tariff hikes.
However, with the costs of many consumer products now very likely to grow, the government’s move threatens the U.S. economy’s key driver: Consumer spending. As companies pull down on investment spending and exports slow at the face of weak global growth, American shoppers are a crucial bright spot for the market.