(WASHINGTON) — Smartphones, sneakers and board games headline a wide-ranging set of products at risk of price increases as a result of China tariffs imposed by the Trump administration, experts told ABC News.
The tariffs, which took effect on Tuesday, slap a 10% tax on all imported goods from China, the third-largest U.S. trade partner.
The Trump administration had also threatened to impose 25% tariffs on Mexico and Canada, but the U.S. reached an agreement with each of those countries on Monday, pausing the tariffs for one month.
Still, trade experts said they expect the China tariffs to increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers. The tariffs could hike prices for an array of goods, from curtains to saucepans to winter coats.
“If you could light up everything around you that has been touched by Chinese manufacturing or inputs, your whole room would light up,” Christine McDaniel, a former senior trade economist on the White House Council of Economic Advisers under President George W. Bush, told ABC News.
The exact price impact remains unclear, however, since businesses within the supply chain could opt to take on some or all of the tax burden, some experts added.
The Trump administration did not immediately respond to ABC News’ request for comment.
In a series of social media posts over recent days, Trump said the tariffs target Canada, Mexico and China for hosting the manufacture and transport of illicit drugs that end up in the United States. In a Truth Social post on Sunday, Trump urged the three countries to address his concerns, while acknowledging the tariffs may cause some financial hardship within the U.S.
“WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID,” Trump wrote.
Smartphones, laptops and video game consoles
Personal electronic devices make up a top category of products imported from China, meaning price increases could impact tablets, smartphones and laptops, experts said. Video cameras, headphones and video game consoles would also be impacted.
The U.S. imported $31.6 billion worth of electronic computers from China over the first nine months of last year, U.S. Census Bureau data showed. Those products accounted for 30% of the total value of U.S. computer imports over that period, the data indicated.
“The consumer electronic sector is heavily integrated across Asia — China being a huge center of that,” McDaniel said. “That would presumably be at the top of the list.”
Tennis shoes and sandals
Nearly all footwear sold in the U.S. comes from abroad, and much of it originates in China. That set of products includes tennis shoes, sandals and high heels, among others.
The U.S. imports between 96% and 99% of all footwear sold nationwide, the United States International Trade Commission, or USITC, found in 2020.
China accounts for about $4 of every $10 in imported footwear sold to U.S. buyers, according to the USITC.
Footwear could suffer significant price hikes since the Chinese firms manufacturing the products often face narrow profit margins, lending them little latitude to take on some of the tax burden, Mary Lovely, a senior fellow at the Peterson Institute for International Economics who studies trade policy, told ABC News.
If sellers were to pass along the full burden of the tariffs to U.S. consumers, it would amount to a 10% price increase. Lovely said the price hike for footwear could approach that upper limit.
“For items like this, I’d expect the price increases would be closer to 10% than 1%,” Lovely said.
Toys and games
As with footwear, almost all toys and games sold in the U.S. are imported. China accounts for the vast majority of those products.
The U.S. imported $18.8 billion worth of toys and games from China over the first nine months of last year, U.S. Census Bureau data showed. Those products accounted for nearly 80% of the total value of U.S. computer imports over that period, the data indicated.
Shares of toy companies fell on Monday in anticipation of the China tariffs. Mattel’s stock price fell about 4.5% while Hasbro’s dropped 2%. Each of the companies recovered much of the losses on Tuesday. They both source a lower share of their products from China than the industry average, MarketWatch reported.
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