US President Donald Trump’s latest round of tariffs on Chinese imports is likely to deliver a direct hit on many consumers, who were largely spared from higher prices in his previous rounds of import taxes. Beginning September 1, United States Government is set to start collecting 15% tariffs on Chinese goods on a wide array of goods which were earlier spared in previous round of tariffs. Owners of shops across United States have begun weighing prospects of a potential hit in business. 

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“y’re on. y’re on”: Trump on tariffs

Beginning Sunday, U.S. government will begin collecting 15% tariffs on $112 billion in Chinese imports — items ranging from smartwatches and TVs to shoes, diapers, sporting goods and meat, and dairy products. For first time since Trump launched his tre war, American households face price increases because many U.S. companies say y’ll be forced to pass on to customers higher prices y’ll pay on Chinese imports. For more than a year, world’s two largest ecomies have been locked in a high-stakes duel marked by Trump’s escalating import taxes on Chinese goods and Beijing’s retaliatory tariffs.

two sides have held periodic talks that seem to have met little progress despite glimmers of potential breakthroughs. All while, y’ve imposed tariffs on billions of each or’s products in a rift over what analysts say is Beijing’s predatory tactics in its drive to become supreme high-tech superpower. American consumers have so far been spared worst of it: Trump ministration h left most everyday household items off its tariff list (valued at $250 billion in Chinese products so far) and inste targeted industrial goods.  That’s about to change. “y’re on. y’re on,” Trump said Friday about new tariffs that are set to kick in at 12:01 a.m. September 1. Under new schedule, 69% of consumer goods Americans buy from China will face his import taxes, up from 29% w.

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Higher tariffs set to kick in 

Higher tariffs are set to kick in for ar batch of Chinese products — $160 billion’ worth — on Dec. 15. By n, roughly 99% of me-in-China consumer goods imported to United States will be taxed, according to calculations by Ch Bown of Peterson Institute for International Ecomics. Overall, Trump’s tre war will have raised aver tariff on Chinese imports from 3.1% in 2017, before hostilities began, to 24.3%. “ bottom line is that, for first time, Trump’s tre war is likely to directly raise prices for a lot of household budget items like clothing, shoes, toys, and consumer electronics,” Bown wrote in a report. For months, Trump — who famously declared that tre wars are “easy to win” — falsely claimed that China itself paid tariffs and that y left Americans unscad. In fact, U.S. importers pay tariffs. y must make a high-risk decision: Wher to absorb higher costs mselves and accept lower profits. Or pass on ir higher costs to ir customers and risk losing business.

This has become an ever-more-difficult decision. After years of ultra-low inflation, consumers have grown more resistant to price hikes, especially when y can easily compare prices online for household products and choose lowest-price options. For that reason, many retailers may choose t to impose cost of Trump’s higher tariffs on ir customers. And higher costs U.S. importers face could be offset somewhat by declining value of China’s currency, which has effect of making its products somewhat less expensive in United States.

Still, prices of certain goods will cost Americans more. Trump tacitly ackwledged this a few weeks ago by anuncing a delay in his higher tariffs on $160 billion in imports until Dec. 15 — to keep m from squeezing holiday shoppers. Even before December tariffs, though, 52% of shoes and 87% of textiles and clothing imported from China were to be hit by Trump’s tariffs, according to Peterson’s Bown. And t even counting increase — from 10% to 15% — that Trump anunced for his new tariffs a week ago, J.P. Morgan h estimated that his import taxes would cost aver household roughly $1,000 a year.

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Retailers imposing higher costs

“ story that holiday goods (were) given a reprieve is fake news,” said Stephen Lamar of American Apparel and Footwear Association. Overall, 15% September and December tariffs will force Americans to pay an extra $4 billion a year for shoes and boots, according to a footwear tre group. Retailers, engd for a battle for survival with Amazon and or e-commerce rivals, are bracing for worst. Macy’s raised an alarm when it reported earnings in August: In May, Trump h raised separate tariffs on $250 billion in Chinese goods from 10% to 25%. In response, Macy’s tried to raise prices of some items on hit list — lugg, housewares, furniture. But according to CEO Jeff Gennette, customers just said .

Some retailers are trying to force ir suppliers to eat higher costs so y won’t have to raise prices for shoppers. Target confirmed to Associated Press that it warned suppliers that it won’t accept cost increases arising from China tariffs. Some small retailers are even more vulnerable. “Any cost increase puts us in a tough place,” said Jennifer Lee, whose family owns Footprint shoe store in San Francisco. “It makes it tough for business owners because we will have to take a hit on our margins, but it will also be difficult for us to pass it on to our shoppers.”

Albert Chow, who owns Great Wall Hardware in San Francisco, said he’s alrey raised prices on some Chinese-me products because an earlier round of tariffs led his suppliers to raise prices 10% to 20%. “I will try to keep prices down for as long as I can,” Chow said. “But at some point, when tariffs are just too much, we have to eventually raise prices, and n it goes down to end user — customer.” What’s frustrating for retailers is that consumers might orwise be in an exuberant mood this holiday season: For most Americans, ir jobs are safe and ir ws are rising. Unemployment is near a half-century low.

Yet ecomy itself looks increasingly fragile. Growth is slowing as global ecomy weakens. And Trump’s mercurial approach to tre policy — imposing, delaying, re-imposing import taxes via tweet — makes it nearly impossible for companies to decide on suppliers, factory sites and new markets. So y delay investments, furr straining ecomy. “We worry about aver family in this country paying $500, $600, even $1,000 more annually because of impact of tariffs,” said Myron Brilliant, he of international affairs at U.S. Chamber of Commerce. “We worry about what it means for business confidence, business certainty, and investment.”

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