President Donald Trump’s planned 104% tariffs on Chinese imports are slated to go into effect at 12:01 a.m. EDT Wednesday, complicating the hundreds of billions of dollars worth of Chinese products brought into the U.S. every year and threatening to these key categories of goods potentially much more expensive.
Container trucks at the Port of Long Beach.
AFP via Getty Images
Key Takeaways
- The U.S. imported $438.9 billion worth of Chinese goods in 2024, according to the Census Bureau.
- That means the 104% levy on Chinese goods would pass on around $418 billion in additional costs to American consumers this year if imports stay relatively flat, the tariffs remain firm and consumers ultimately bear the brunt of the tariffs via higher sticker prices, as many experts predict.
- How much does the U.S. import from China? China is the manufacturing capital of the world and accounts for 13.5% of all U.S. imports, and computer and electronic products are by far the largest category of Chinese imports, accounting for 30% of all Chinese goods entering the U.S., according to Apollo Global Management.
- The $55 billion in smartphones and other telephone products imported from China in 2023 will likely weigh on smartphone prices stateside, while the $6.8 billion imported for monitors, $40 billion on automatic data processors including bar code scanners, $6.4 billion on space and water heaters and the more than $2.5 billion apiece on air conditioners plus refrigerators and freezers may hit other electronic and appliance products.
- China accounts for about a third of all textile goods imported to the U.S., meaning clothing and bedding may get hit, and it’s the primary provider of bedding, lamps, paint, sports equipment, toys and video and card games.
- China also accounts for a majority of imports in these categories, according to the New York Times: Blankets, brooms, electric batteries, iron stovetops, rubber footwear, party decorations and vacuum-sealed water bottles.
What’s China’s Response?
China’s Ministry of Commerce said Tuesday the U.S. tariffs are a “mistake” which it plans to “fight to the end.” The country will implement a 34% counter-tariff on U.S. goods Thursday. The U.S. exported $144 billion of goods to China last year, though several of the most recognizable American companies, including Apple and Tesla, rely on China for a signifcant portion of their revenues.
How Much Does The US Import From China?
U.S. imports from China were already down 18% in 2024 from their 2018 record of $538.5 billion. That came as the U.S.’ average effective tariff rate on Chinese goods rose from 3% in 2018 to about 11% last year, even ahead of the 10 percentage-point additional levy, according to Trade Partnership Worldwide.
What’s Next For China Tariffs?
Trump said Tuesday Beijing has yet to reach out on any trade negotiations while promising “China also wants to make a deal, badly, but they don’t know how to get it started.” White House Press Secretary Karoline Leavitt told reporters Tuesday afternoon Trump isn’t “considering an extension or delay” on the new levies. Trump’s more than 100% tariffs on China would reduce the Asian country’s 2025 gross domestic product by 2.4 percentage points, Goldman Sachs economists led by Andrew Tilton wrote in a Tuesday note to clients.
This article was originally published on forbes.com and all figures are in USD.
