WASHINGTON, D.C. – Sunday marks a new phase in the U.S.-China trade war. That’s when the next round of tariffs on Chinese imports kicks in. And this time, you can expect to feel the impact with higher prices on things you buy every day.
Up until now, companies have mostly been able to absorb the effects of those escalating tariffs. But that’s expected to change with higher costs passed on to consumers. The reality of a long-simmering trade war is about to hit home.
15% tariffs kick in Sunday on more than $100 billion worth of Chinese imports ranging from clothing to diapers and contact lenses.
150 business associations—part of “Americans for Free Trade”—are urging President Trump to delay the tariff increases, saying they “act as a tax on U.S. manufacturers and U.S. farmers.”
Jay Foreman, the CEO of toymaker “Basic Fun,” wants the president to stop playing with his business. “The administration is really creating a problem that has no solution except raising prices on everybody and taking profits away from companies,” Foreman said.
In China, a foreign ministry spokesperson said both sides are communicating with hopes the U.S. will meet China halfway. This comes while President Trump tweets that General Motors should start moving manufacturing back to the U.S. from China.
The president’s moves have been hard to follow for many businesses, swaying from tariff hikes to delays, and threats to praise for Chinese leaders.
Foreman explained, “Every day you’re wondering where the storm is going to go, where the hurricane is going to hit? How do we plan?”
One California surfboard maker supports the president’s tariffs. He’s being undercut by cheap Chinese boards. Dennis Jarvis is the founder of Spyder Surfboards. He said, “I’m a proponent for the highest as possible because then it becomes competitive for me.”
Jarvis is willing to ride out the uncertainty if it brings a wave of new business.
President Trump delayed a second round of tariffs on goods like big-ticket electronics until December.