Around $800 a year — that’s how much increased tariffs on Chinese imports could end up costing the average American family of four.
Despite friendly handshakes between team Trump and the Chinese delegates, trade talks appear stalled and no sign of President Trump giving an inch on the 25 percent tariff he’s launched on Chinese goods.
“I happen to think that tariffs for our country are very powerful. You know, we’re the piggy bank that everybody steals from, including China,” said President Trump.
But American consumers could soon feel a greater impact, if the tariffs expand to consumer products as threatened.
China would be expected to pass on those examples — jacking up prices on smartphones, computers, televisions, fitness trackers and much more.
The extra cost for the average American family of four is expected to be close to $800.
What could drive it?
Three quarters of the toys bought in the U.S. are made in China.
90 percent of Chinese-made footwear, including some shoes for Nike could be hit.
So could clothing, bluetooth headsets, and even drones.
Trump’s tariffs on China last year steered away from consumer goods and focused on industrial items such as solar panels, steel and aluminum.
Those costs were passed on by American companies.
“American consumers are already paying they just don’t really know it. It’s kind of a stealth tax but it’s going to become a very obvious tax not too far from now if this continues,” said Moody’s Analytics’ Chief Economist Mark Zandi.
The major markets have already show unease over the clash.
In the next three years, if China and the U.S. continue warring over trade — economists say both countries could see their economies slow down and close to a million American jobs might be lost.
Still, the president has long insisted China is cheating the U.S. by stealing intellectual property, manipulating currency, and most recently reneging on a framework for a deal.
And he’s convinced China will blink first, tweeting:
“Tariffs will make our country much stronger, not weaker. Just sit back and watch!”