24 May. 2019 | Comments (0)
This column was initially published by CNBC. Continue reading here.
But after all the holiday specials fade, U.S. consumers could be in for a surprise: higher prices.
On May 10th, the White House announced that it was raising the tariff rates on a range of Chinese imports from 10% to 25%. The policy exempted those cargo ships already on their way to the U.S., but the higher rates would apply to any goods that departed following the announcement.
The freighters that set sail after the 10th are nearing America’s shores, with many set to arrive next week. According to the Office of the U.S. Trade Representative, nearly 6,000 categories of Chinese goods that come into the U.S. will now face higher duties. Worth about $200 billion in total, they encompass a diverse group of items ranging from televisions to handbags, high tech to high fashion.
Retailers like Walmart and Macy’s already have warned that these tariffs – and others that may come later this year – may result in higher prices for their customers. The degree to which this occurs, however, will depend on how well they are able to respond.