The fact is that Americans who start their holiday hopping this week are likely to pick up some items that…
The fact is that Americans who start their holiday hopping this week are likely to pick up some items that are already subject to Trump’s tariffs.
Since the customs came into force at the end of September, handbags, perfumes, wallets, hats and fur coats among the 5,700 articles from China have been subject to a 10% duty rate – along with gifts for sports enthusiasts in your life, including ski boots, bicycles, baseball gloves and golf bags. Cashmere imported for sweaters does not end up in tax.
Fortunately for the year’s shoppers, prices are likely to not go up yet. American importers pay the duty, and most items on the Black Friday floor were already priced before the tariffs started, says Rick Helfenbein, president of the American Apparel and Footwear Association.
“Shoppers can be forgiven this Thanksgiving season, but they will pay more comes spring,” he added.
Next year may be very different if Trump and Chinese President Xi Jinping fail to reach a trade agreement before the end of the year when Trump says he will escalate the tariffs by 1
0% to 25%.
“When you reach the 25% mark, you will see more price increases for the end consumer,” says Christopher Shaker, an analyst for consumer products and partner at RSM, an accounting, tax and consulting company for medium-sized companies.
Big Box Dealers Walmart and Target have already warned that rates may lead to higher prices.
Trump is scheduled to meet with Xi next week on the side of the G20 summit in Argentina to discuss trade.
But an agreement is far from some. Earlier this week, Chinese negotiators broke up preliminary meetings with their US counterparts before the summit. On Tuesday, the United States Trade Representative Robert Lighthizer increased pressure on China by releasing an updated report showing that Beijing has done little to correct its unfair practices.
The Trump Administration also made a priority to aggressively go after China to engage in intangible theft and forced transfer of technology. Before Trump imposed $ 200 billion in goods in September, Trump put taxes of $ 50 billion Chinese goods – but the previous rounds did not contain many consumer goods.
China has recovered with duties of 110 billion dollars in US products and is likely to react more if the United States continues with the January increase.
US companies and legislators on both sides agree that China should deal with trade issues – but not everyone believes the rates are the right way. Some manufacturers and retailers say that the data can lead to losses and higher prices for consumers.
Trump has also suggested that he could move on to introduce another round of charges of $ 267 billion in goods if no agreement can be reached, effectively covering all Chinese exports to the United States.
The move would tax even more consumer goods coming from China, including TV, Apple Watches, Air Pods and Fitbits.
So far, a relatively small amount of clothing from China has suffered tariffs, but a new part would be significant. In total, the United States receives 41% of its imports from China, 80% of accessories and 73% of footwear, says Helfenbein.
“It’s almost like this year and next year are two different worlds,” he said.