Topline
President Donald Trump’s 10% additional tariffs on Chinese imports went into effect Tuesday, threatening to make several key categories of goods more expensive from the hundreds of billions of dollars worth of Chinese products brought into the U.S. every year.
Container trucks at the Port of Long Beach.
Key Facts
The U.S. imported $426.9 billion worth of Chinese goods in 2023 and $401.8 billion in 2024’s first 11 months, according to the U.S. Census Bureau (December 2024 data will come out Wednesday).
That means the 10% levy on Chinese goods threatens to pass on around $40 billion in additional costs to American consumers this year, assuming imports stay relatively flat 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 The Impact Of China’s Counter-Tariffs?
China’s Ministry of Commerce said Tuesday it “firmly opposes” the U.S. tariffs and struck back with its own 15% levies on American coal and liquified natural gas and 10% levies on American crude oil, agricultural equipment and some large trucks, set to go into effect Monday. These measures are much smaller than the blanket 10% import tax placed by the U.S.: Goldman Sachs’ chief Asia-Pacific economist Andrew Tilton estimates it only puts 12% additional effective tariffs on about $14 billion of goods.
How Much Does The U.s. Import From China?
U.S. imports from China were already down 21% in 2023 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 and Chinese President Xi Jinping will not speak by phone Tuesday despite an earlier suggestion they would, The Wall Street Journal reported. Trump’s senior trade adviser Peter Navarro told reporters “let's see what happens with the call” to see what the next step is on tariffs. Trump on Monday delayed 25% tariffs on Canadian and Mexican goods after talking with those countries’ heads of state. The 10% additional tariffs on Chinese goods are a far cry from the 60% levies Trump floated on the campaign trail, indicating there is room for further escalation. “The future path of US-China trade conflicts remains highly uncertain,” forewarned Tilton.
