Trump further increases tariff on Chinese imports. What it means for U.S. consumers
NEW YORK (WABC) -- After President Donald Trump further raised the tariff on Chinese imports on Wednesday, analysts say consumers can expect higher prices and lower supply.
Trump abruptly backed down on his tariffs on most nations for 90 days but raised the tax rate on Chinese imports to 125%, seemingly narrowing what had been an unprecedented trade war between the U.S. and most of the world to a showdown between the U.S. and China.
Many stores in New York City and across the country are filled with products made in China.
The U.S. imported more than $438 billion worth of products from China last year alone, everything from clothing to electronics. Items consumers purchase every day.
As a result, in the short term, market analysts say not only will consumers see higher prices, but the tariff could also lead to supply issues.
"We're going to see higher prices will all of that stuff right now. We are going to immediately. And some of that will just not show up. So if you imagine, you're importing something from China into you know a department store or into one of the big box retailers, they may not take delivery of that unity they know what the ultimate cost is going to be," _____ said.
Some experts are optimistic that Trump abruptly backing down on the planned import taxes for other countries is a sign he's willing to negotiate.
"We've gone from being the bully in the room to someone who is willing to be out there and negotiate to get a better trade deal with all of the countries that we do business with," _____ said. "We will likely see these two countries get together when this administration has shown a willingness to negotiate with other countries. I think that will force China to the negotiation table."
And it's something the president ackowledged late Wednesday afternoon.
"China wants to make a deal, they just don't know how quite to go about it," Trump said.
But as just the past week has shown, the situation could change any day, depending on what the president announces or which agreements are made.
"This is just such an unprecedented period," _____ said. "This kind of uncertainty is just a paralysis in any type of major decision making."
If negotations aren't made with other countries, local economists say New Yorkers will likely face inflation and a dip in international tourists traveling to New York, which helps feed the local economy.
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