Impact of Trump's tariff plan: Prices of goods from China and other three countries will rise by up to 56%

It is learned that recently, according to foreign media reports, Trump's tariff plan has once again attracted attention. During his campaign, Trump promised to impose tariffs on goods from other countries, especially China. This policy may lead to price increases for many consumer goods and force American consumers to adjust their purchasing habits.

It is understood that Trump plans to impose tariffs on imported goods, with the highest tariff rate for Chinese goods possibly reaching 60%, and plans to impose a 25% tariff on Canadian and Mexican imports starting February 1. This will directly affect a variety of daily commodities from shoes, furniture, toys to cars. Although the details of the specific tax rate and implementation time are still unclear, experts say that the most affected will be the goods with close trade relations between the United States, China, Mexico and Canada.

1. Prices of furniture, toys, shoes and cosmetics may rise sharply

China is the world's largest furniture exporter, and nearly 30% of the furniture imported by the United States each year comes from China. In 2023, the United States imported $32.4 billion in furniture, of which 29% came from China, followed by Vietnam at 26.5%. If Trump's tariff proposal takes effect, consumers may face rising furniture prices, especially for higher-priced products such as sofas and dining tables. Although 30%-40% of furniture is produced in the United States, up to 50% of raw materials, such as wood, fabric, screws, etc., are still mostly imported. Therefore, even if furniture is labeled "Made in the USA", its raw materials will be affected by tariffs, resulting in higher prices.

If Trump imposes tariffs of up to 60% on Chinese furniture products, furniture prices will rise significantly. According to forecasts, a $2,000 sofa could cost $2,200 to $2,400. If the supply chain shifts to Vietnam or Mexico, these prices could still rise by 10% to 25%.

In addition, the toy industry faces similar risks. 80% of toys in the United States come from China. If tariffs are raised, toy prices may rise by as much as 56%. For example, a $20 Barbie doll may cost $31.20.

Footwear is another industry that is heavily dependent on imports, with almost 100% of footwear in the United States imported. It is expected that athletic shoes will also face price pressure after the tariff plan is implemented. According to the U.S. International Trade Commission, about 37% of footwear imports in 2023 will come from China, followed by Vietnam at about 30%, Italy at nearly 9%, and Indonesia at 8%.

At the same time, while China is not a major producer of cosmetics, Elf Beauty, a brand popular with young American shoppers, has about 80% of its cosmetics produced in China and may be forced to raise prices if the tariff plan takes effect.

2. Mexico commodity prices fluctuate, affecting cars, beer and avocados

American consumers have been increasing their demand for Mexican goods in recent years, especially cars, beer and avocados. According to the International Trade Administration, Mexico is the main source of imports of auto parts and finished products to the United States. If Trump implements tariffs of up to 25%, it will have a $56 billion impact on American automakers such as Stellantis and Ford, and the cost may eventually be passed on to consumers, so car prices may rise.

Mexican beer has also become a hot commodity in the US market. Data shows that Mexico's Modelo brand has surpassed Budweiser to become the best-selling beer brand in the United States. If tariffs are implemented, the production costs of the Constellation brand are expected to increase by 16%, and it may respond by raising prices. Avocados, one of the mainstream fruits consumed in the United States, 90% come from Mexico. If tariffs take effect, consumers will face higher prices, although demand in this market remains strong.

3. Canada: Oil and daily consumer goods

Canada is one of the main suppliers of oil to the United States. According to analysis, about 50% of the oil imported by the United States comes from Canada. If tariffs are imposed on Canadian oil, the prices of almost all goods will increase significantly, affecting every household and business.

But agricultural products are also under pressure from Canada's tariffs. According to data from the Canadian Ministry of Agriculture and Agri-Food, Canada exports about $40.5 billion in agricultural products to the United States each year, including $1.7 billion in frozen French fries and other frozen potato products. As consumers become more price-sensitive, it may be difficult to accept price increases caused by tariffs.

4. Impact of tariffs on consumers and sellers

The implementation of tariffs will not only have an impact on the prices of consumer goods, but may also bring major challenges to sellers. Experts say sellers may choose to pass on the additional tariff costs to consumers, leading to a general increase in commodity prices. According to the survey, 67% of American adults believe that sellers will pass on tariff costs to consumers, and about 45% of respondents support a 10% tariff on all imported goods.

As uncertainty in global supply chains grows, sellers are preparing for future tariff changes and must carefully decide whether to pass on costs to consumers as consumers become more price-conscious.

In short, Trump's tariff plan will have a profound impact on the US consumer market and foreign trade industry. Consumers may have to pay higher prices for daily necessities, and sellers will also face the challenge of finding a balance between maintaining profits and responding to consumer demand.

Author✎ Summer/
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