Why Everything You Buy at Walmart and Amazon Is About to Cost More
- President Trump is expected to enact new tariffs on goods from China that could affect $200 billion worth of imports.
- Suppliers like Walmart and Amazon could have to raise prices on items they sell that are imported from China.
- Walmart alone purchased $49 billion worth of products made in China in 2013.
There’s been a lot of talk about tariffs and their impact on foreign consumers, but the latest salvo in the trade war might make household goods a lot more expensive for U.S. shoppers.
President Donald Trump is expected to enact tariffs that will affect $200 billion worth of imports from China, which could, in turn, increase the cost of consumer goods across the board due to businesses in the U.S. selling a good number of Chinese-made products.
Click to read about how Trump’s tariffs could leave many items you use costing more.
The president asked U.S. Trade Representative Robert Lighthizer to identify $200 billion worth of Chinese goods to which the U.S. could apply a 10 percent tariff. The president then directed Lighthizer to consider increasing the tariff to 25 percent. Since other goods, such as motor vehicles, healthcare equipment, farming equipment and steel and aluminum have already had tariffs applied, the new tariffs will probably primarily affect consumer products.
Mass merchandisers like Walmart and Amazon have remained largely unaffected so far, but that is likely to change with the new round of tariffs.
Walmart purchased $49 billion worth of products made in China in 2013, according to the Economic Policy Institute. These products will cost Walmart more if the proposed tariffs are enacted, and those costs will likely be passed on to the consumer.
Many products purchased by U.S. consumers on Amazon come directly from Chinese sellers. According to Alasdair McLean-Foreman, CEO of Teikametrics, a data analytics firm, there were about 200,000 Chinese sellers on Amazon as of January 2017, USA Today reported. These sellers will likely have to raise their prices in relation to the proposed 25 percent tariff.
Products that could be affected by the new tariffs include:
- Sporting equipment
- Specific food items such as seafood and fruit
The Chinese government has enacted tariffs on U.S. goods imported into China as well, including soybeans, sorghum, milk, pork, produce, nuts and more. These tariffs are limiting the ability of U.S. farmers to continue to sell their products overseas.
Click through to read more about the companies that have reinvested in America following Trump’s election.
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