The US has imposed $112 billion worth of new tariffs on Chinese imports, including consumer goods such as shoes, food, dishwashers and nappies, with the aim of reaching 15% duties on $300 billion by the end of the year.
In response, China will be increasing tariffs on $75 billion worth of US goods, including a 5% tariff on crude oil.
President Trump’s next round of tariffs in December is due to hit laptops and iPhones, and will encompass virtually all goods imported from China. Rates on existing duties will rise from 25% to 30% on October 1st.
This follows several rounds of tariff hikes amidst an ongoing trade war.
The tariff increases could hit the average US household by up to $1000 a year, according to industry analysts.
More than 200 US shoe companies, including Nike, Adidas and Converse, asked the government to cancel the new tariffs, saying that combined tariffs could add up to 67% on some shoes, increasing costs by $4 billion for American consumers.
Trump's administration had so far avoided consumer products and technology, for which the majority of import volume is from China. It’s not as easy for US companies to adjust, forcing them to pass prices on to their customers.
Header image: Edgar Chaparro