Trump's tariffs hike prices, deepen US‑China trade tensions
Donald Trump has escalated the trade war, arguing it will benefit the American economy. However, experts are warning that the new trade policy will lead to significant store price increases. For example, a pair of running shoes that used to cost $150 will now cost $230, according to Matt Priest on CNN.
The new US tariffs on China came into effect at midnight. Many experts point out that the trade war sparked by Donald Trump is unlikely to boost the American economy as the president claims; rather, it will result in much higher prices for consumers in stores.
Jim Sciutto, a CNN journalist, highlighted the issue of rising prices in his program. His guest was Matt Priest from the Footwear Distributors and Retailers of America. FDRA is an organization representing the interests of footwear manufacturers and retailers in the United States.
Sciutto asked his guest: How much would a pair of sports shoes costing $100 and manufactured in China or Vietnam cost if made in the USA?
- $300 or $400 easily. In fact, we've even just looked at the tariffs coming into place tonight at midnight, a $150 pair of running shoes will be $230 - calculated Matt Priest.
What does this mean for US-China relations?
The decision to impose a 104-percent tariff is another step in escalating trade tensions between the USA and China. China missed the deadline set by President Trump to withdraw retaliatory tariffs, prompting the USA to take decisive action. As Fox Business reporter Edward Lawrence noted, China will see an additional 104 percent added to imports, which could affect future trade relations.
China is the largest trading partner of the USA in terms of imported goods – at its peak, Americans imported goods worth over 500 billion dollars annually. A significant deficit on the US side has long characterized trade relations between the United States and China. In 2024, American exports to China amounted to about 143.5 billion dollars, while imports from China reached 438.9 billion dollars, resulting in a trade deficit of 295.4 billion dollars. The USA exports agricultural goods (soybeans, corn), machinery, electronics, and industrial products to China, albeit on a much smaller scale.
The USA has repeatedly accused China of artificially undervaluing the yuan, supporting domestic companies through state measures, restricting American businesses' access to the Chinese market, intellectual property theft, and forced technology transfer. This has eventually led to a deep trust crisis, culminating in the trade war that began in 2018 during Donald Trump's first presidency.
What will be the impact on international trade?
The additional tariffs will affect China and 56 other countries with which the USA has a trade deficit.
