CINCINNATI (WKRC) – A new round of tariffs is set to go into place on Dec. 15 and it could have an impact on Americans’ wallets.
“In previous rounds of tariffs the tariffs primarily targeted industrial products, like industrial steel,” said David Weiss, a research associate for the UC Economics Center. “This proposed round, in contrast, is going to hit consumers’ pocketbooks pretty directly.”
The Trump administration is implementing a 15% tariff on about $155 billion of Chinese-made imports as the two countries struggle to hammer out a phase one trade deal. This includes all kinds of products, from iPhones to clothing to food.
“Almost half of American shoppers racked up more than $1,000 of holiday season debt for 2018 so this is really going to exacerbate the problem for American consumers,” Weiss said.
Just last week, President Trump also proposed a wave of tariffs on French goods, including cheese, handbags, and sparkling wine in response to a new French tax on digital services.
“Consumers are going to have to make the choice: Do I want to pay the extra 25% for this cheese or am I going to try to find a cheese from Oregon or Wisconsin or somewhere else domestically that I like just as much?” Weiss said.
Some retailers are more prepared than others to absorb price increases, but it’s a good idea for consumers to be prepared.
“It’s more important than ever that American shoppers do their research and that they compare prices across stores and products,” Weiss said.
The Chinese tariffs are set to go into effect Sunday, December 15, but there still is a chance the Trump administration could reach an agreement with China.