Which Products Are Set to Surge in Price Amidst the US-China Trade Conflict?

ESSENTIAL INSIGHTS

• The US-China trade tensions have led to a cumulative tariff rate of 145% on Chinese imports.
• Consumers in the US can expect higher prices on electronics, household appliances, and apparel due to increased import costs.
• New tariff rules on low-value shipments from China are set to raise the cost of affordable clothing brands like Temu and Shein.

As trade disputes between the US and China intensify, American shoppers face rising costs on many everyday items. The US government has significantly increased tariffs on Chinese goods, reaching a total of 145%, a move triggered by retaliatory tariffs from Beijing.

These tariffs are expected to elevate the prices of Chinese-made products, including popular electronics and appliances, as importers pass on additional expenses to consumers. China remains America's largest source of imports, accounting for 16.5% of all goods entering the US, according to the United States Trade Representative.

In 2024, the leading imports from China include electrical machinery and equipment such as microchips, smartphones, and batteries. Other major imports are industrial machinery like nuclear reactors, boilers, and various factory equipment, as well as household items like refrigerators, dishwashers, and water heaters.

Previously, low-cost clothing retailers like Temu and Shein benefited from the de minimis exemption, allowing shipments valued under $500 to enter the US without tariffs. This exemption kept prices affordable for consumers.

However, starting May 1, 2024, this exemption was revoked for Chinese goods. Shipments valued below $500 will now face tariffs of 90% or a minimum of $75 per item, significantly increasing costs for budget-conscious shoppers.

Note: This article was updated in June 2024 to reflect accurate tariff data and policy changes.

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