The trade war between the world’s two largest economies is set to continue escalating.
US President Donald Trump’s recent moves will lead to an expansion of current tariffs, starting with an additional 5% increase to tariffs on $250 billion worth of Chinese imports into the US on October 15th.
A new 15% tariff on $109 billion in Chinese imports into the US came into effect on September 1st, with additional tariffs scheduled for October 15th adding even more pressure. Another 15% levy on $155 billion worth of Chinese imports is set to be added on December 15th, which is expected to hit the US consumer in a much more apparent way. In anticipation of these changes, JP Morgan wrote a letter to its clients last week. The letter laid out the price increases expected on common Chinese imports into the US. In the end, the December 15th tariff increases are expected to cost the average American household an additional $1000 per year.
If you want to avoid the worst of the US-China trade war fallout, you’ll want to look ahead for certain purchases. First of all, if you plan on buying a new pair of shoes, you’ll want to do so sooner rather than later. About 99% of shoes in the US were made in China and the upcoming tariffs are expected to hit athletic footwear especially hard. Beyond shoes, clothing articles are also expected to become more expensive. The coming tariffs will affect clothing for both children and adults, with athletic apparel also expected to cost more once the tariffs come into effect.
If you’ve kept up with the more recent developments of the trade war, it’ll be no surprise that tech products will become more expensive. Cell phones and laptops will cost more going into 2020, so waiting to buy that new laptop might not be the best idea. This includes Apple products, which have taken center stage given the company has come under fire by President Trump. “Make them in the USA, no Tariffs!’’ Trump tweeted regarding the idea of Apple receiving a tariff waiver. The cost of iPhones is expected to jump 10% after the December 15th tariffs.