New tariffs escalate US‑China trade tensions, consumers to pay more

New US tariffs on China came into effect at 5 a.m. Greenwich Mean Time. Many experts point out that the tariff war initiated by Donald Trump will not necessarily support the American economy, as the US president claims. Still, they will result in much higher prices for shop consumers.

Rising costs were a focal point in a programme by Jim Sciutto, a CNN journalist. His guest was Matt Priest from the Footwear Distributors and Retailers of America (FDRA), an organization that represents the interests of footwear manufacturers and retailers in the United States.

Sciutto asked his guest: How much would a pair of athletic shoes costing $100 (£80), manufactured in China or Vietnam, cost if they were produced in the USA?

"$300 or $400 (£240 or £320) easily. In fact, we've even just looked at the tariffs coming into place tonight at midnight, a $150 (£120) pair of running shoes will be $230 (£180)," estimated Matt Priest.

The decision to impose a 104% tariff is another step in escalating trade tensions between the US and China. China failed to meet President Trump's deadline to withdraw retaliatory tariffs, prompting the US to take decisive action. As Fox Business reporter Edward Lawrence highlighted, China will see an additional 104% added to imports, which could impact further trade relations between these two countries.

China is the largest trading partner of the US when it comes to importing goods – at its peak, Americans imported goods from China worth over $500 billion (£400 billion) annually. A significant deficit on the US side has long characterised trade relations between the United States and China. In 2024, the value of American exports to China was about $143.5 billion (£115 billion), while imports from China reached $438.9 billion (£350 billion), resulting in a trade deficit of $295.4 billion (£235 billion). The US exports agricultural products (such as soybeans and corn) to China and machinery, electronics, and industrial products on a much smaller scale.

The US has frequently accused China of various issues, including artificially undervaluing the yuan, state support of domestic companies, limited market access for American businesses, intellectual property theft, and forced technology transfer. All this has led to a deep trust crisis, culminating in the trade war initiated in 2018 during Donald Trump's first presidency.

The additional tariffs will affect China and 56 other countries with which the US has a trade deficit.