The United States may soon face significant changes in the cost of imported goods as former President Donald Trump threatens to impose a 10% tariff on all Chinese imports. Last year, the US imported $401 billion worth of goods from China, with communications equipment leading the charge at $47 billion. This category, which includes cellphones, TVs, and satellites, accounted for 12% of the total imports. However, the proposed tariffs could disrupt this trend, removing communications equipment from its top spot.
In recent developments, Trump has also threatened to levy a 25% tariff on goods imported from Mexico and Canada starting February 1. Despite these threats, Mexico and Canada enjoy largely tariff-free exports to the US due to the United States-Mexico-Canada Agreement (USMCA). Meanwhile, China faces an extensive array of tariffs on various products, excluding consumer electronics. Notably, electric vehicles from China are already subject to a hefty 100% tariff.
The imposition of a 10% tariff on Chinese goods could lead to increased prices for consumers. However, the exact timing of these price adjustments remains uncertain due to the delayed availability of December trade data. While some consumers may struggle with higher costs and reduced affordability, others may experience a gradual impact on their purchasing decisions.
Besides communications equipment, computer equipment and miscellaneous manufactured commodities also make up significant portions of US imports from China. The US imported $39 billion worth of computer equipment, making it the second-largest category last year. "Miscellaneous manufactured commodities" followed closely behind, totaling $37 billion in imports.
