The U.S. increased tariffs from 10% to 25% on $200 billion of Chinese goods on May 10. Those added costs are likely to trickle down to consumers. So what items might we see higher prices on?
If you're planning a home or business remodel in the coming months, be prepared for higher prices. The tariff list includes a number of products, both big and small, that would be part of a typical construction project. The big items include raw building supplies like quartz, granite, flooring, carpet and tiles. But it also targets small metal items, like bolts and screws.
Parents might want to consider knocking out their back to school shopping a little early this year. Paper products and binders from China will be hit with the higher tariffs. The list also targets just about every fabric on the market, which means the cost of clothes for growing kids might go up too.
The tariffs could also impact anyone who owns a car. The list includes items typically used in regular car maintenance, like brake fluid, engine oil, transmission fluid and windshield wipers. It also hits some car repair items like spark plugs, tires and mufflers.
Some summer-fun items are also subject to the higher fees, including bikes, baseball gloves and inflatable rafts. Any big spenders planning to buy a new yacht or sailboat this summer also might get hit with a higher price tag.
There are also some oddball items being affected by the higher rates, like blowers for a pipe organ and manure spreaders.
President Trump has repeatedly claimed China is paying for these tariffs, but that's not true. American businesses are footing the bill, and they have a few different ways they could compensate for it. Companies could absorb the added cost and cut into their profits. They could cut costs from somewhere else or source the impacted items from another country. But the most likely scenario is the higher tariffs will trickle down to consumers in the form of higher prices.