Trump lining up new tariffs; what they mean for you
Unless President Donald Trump backs down, Americans will soon be paying new tariffs on Chinese-made iPhones and toys, as well as French champagne and cheeses.
Tariffs, which are paid by US importers, could lead to higher prices for consumers. One recent report said that Trump’s tariffs on Chinese goods could cost the average American household $600 annually or — if the next round goes into effect — up to $1,000 a year.
So far, most of Trump’s tariffs have hit industrial goods — but new tariffs set to go into place on December 15 would affect a variety of consumer products. Here’s what to expect.
iPhone tariff coming Dec. 15
Under Trump’s current plans, about $155 billion of Chinese-made products will be hit with a new tariffs on December 15. On Monday Trump threw cold water on hopes that an agreement would be reached with Beijing before his deadline, suggesting it could be “better to wait until after the election” to make a deal.
Cellphones, laptops and tablets made in China would be hit by this round of tariffs, as well as toys, office and schools supplies, Christmas ornaments, some clothing, and frozen Alaskan pollock fillets.
But these tariffs aren’t expected to hit holiday shoppers. Most of the items already on store shelves were shipped to the United States during the summer and fall, before the tariffs.
European wines and cheeses
In October, the United States imposed tariffs on $7.5 billions worth of goods produced in the European Union for a trade dispute over government subsides for aircraft maker Airbus.
Those tariffs hit a variety of food and drinks, including meats and cheeses from Italy, French and Spanish wine, and Irish and Scotch whiskeys.
More tariffs could be coming over the same subsidy issue. The World Trade Organization ruled this week that the EU still hadn’t fixed the problem, so the Trump administration is weighing whether to increase the existing tariff rate and finding new products to tax.
Meanwhile, French champagne could be next, along with an expanded array of cheeses, handbags and beauty products.
The United States said Monday that it is considering tariffs on $2.4 billion in French products over an issue with a new French tax on digital services. But when meeting with French President Emmanuel Macron on Tuesday, Trump struck a softer tone, saying the two leaders “have a minor dispute” but added, “we’ll probably be able to work it out.”
What’s already more expensive?
Last year, Trump imposed tariffs on foreign-made washing machines, which led to an a 12% price increase for US consumers, according to a report from economists at the University of Chicago and Federal Reserve
Chinese-made luggage, baseball hats and gloves and a variety of bikes were hit with tariffs last year. In September, TVs and apparel were also affected.
But earlier Chinese tariffs were meant to spare American consumers, and mostly impacted industrial materials used by manufacturers.
CNN’s Allie Malloy, Betsy Klein and Maegan Vazquez contributed reporting.