President Trump's latest escalation of his trade war against China means some U.S. companies are going to have to start paying even more to import Chinese goods. But will that price hike get passed along to consumers?
Companies already dealing with the 10 percent U.S. tariffs on Chinese imports are now facing a tax of 25 percent on those goods. That cost hike will make it even tougher for those companies to keep the sale prices of those goods from going up.
But consumer products have been mostly spared from the trade war so far: they make up only 23 percent of this latest round of tariffs, according to the Peterson Institute for International Economics.
Imports of Chinese furniture and light fixtures are among the biggest consumer sectors impacted by this move. Manufacturers that rely on China for things like metal products and computer parts are also getting hit with these tariffs.
But the trade war's biggest threat to consumers hasn't come to pass — yet. Major retail sectors like toys, textile and electronics have largely escaped tariffs so far.
Still, President Trump has threatened to expand U.S. tariffs to cover nearly all of China's exports to the U.S. Negotiators are currently trying to avert that threat by reaching a trade deal.
This video includes reporting from Newsy affiliate CNN.
