iPhones, Shein and toys among top-traded items potentially impacted by US-China tariff war
Steep tariff hikes on Chinese imports went into effect Wednesday and China retaliated, announcing its own tariff on goods from the U.S. − as the world braces for a trade war.
With tariffs set early in his administration, President Donald Trump has imposed a total tariff rate of 125% on Chinese imports. Anything China buys from the U.S. will be taxed at 84% starting Thursday, Chinese officials announced Wednesday. That was before Trump imposed the latest hike Wednesday afternoon as he authorized a 90-day pause for other tariffs.
Of the $3.2 trillion the U.S. imported in 2022, 16.5% of that came from China, making it America's top supplier, according to the Office of the U.S. Trade Representative. China is also one of the U.S.'s top export destinations, falling behind Canada and Mexico with $150.4 billion of U.S. goods being bought by China in the same year.
The escalating trade tensions have prompted turmoil in the stock market as people fear inflation and a possible recession.
For the average consumer, some everyday goods are likely to get more expensive. Here is a look at what Chinese goods the U.S. buys and sells.
iPhones and smartphones part of biggest sector of Chinese imports
According to a U.S. Department of Commerce Office of Industry and Security report on trade with China, mechanical appliances, sound recorders and TV sets were the most commonly traded commodity sectors between China and the U.S. in 2022.
The machinery and mechanical appliances sector made up 46.4% of all imports from China in that year.
Among popular Chinese imports are Apple iPhones. When the tariff rate was slated for 54% total, experts previously told Paste BN that the iPhone price could cost up to $2,300 if Apple does not absorb any of the cost. That was before the rate was hiked up to 125%.
Shein and Temu orders will no longer enjoy trade loophole after May 2
Although China faced rising tariff rates on exports to the U.S. ahead of "Liberation Day," packages valued under $800 were able to come in duty-free thanks to the "de minimis" exemption.
Over half of all packages with de minimis exemptions come from China, and more than 30% of all daily packages shipped under de minimis are from Temu and Shein, Reuters reported in February when the loophole was temporarily closed and then reopened. Experts told Reuters at the time that closing the loophole could lead to higher prices and longer shipping times.
On April 2, Trump announced that the proper protocol to collect the revenue on these small-value packages sent through the international postal network was in place.
Therefore, the de minimis exemption is set to end at midnight on May 1. The postal packages from China valued at under $800 will then be taxed at 90% of their value or $75 per item, which is scheduled to increase to $150 per item after June 1, according to a White House announcement Tuesday. The White House did not immediately respond to a request for comment on whether the Wednesday hike on Chinese tariffs would further impact the de minimis rates.
China: major source of textiles, furniture, toys, and paint imports
The Commerce Department report stated that China was a major source of textiles, making up about 29.7% of the U.S. textile imports.
China was also the source of more than 50% of imports of the following items, according to the report:
- Furniture
- Bedding
- Lamps
- Toys
- Games
- Sports equipment
- Paint
- Other miscellaneous manufactured items
Those imported items from China will now face some of the steepest tariff rates. Businesses paying those rates often pass some or all of the cost onto the consumer, making them more expensive.
Soybeans and other agricultural commodities could see less demand from China
Of America's exports to China, which will now face an 84% levy upon arrival, 23.1% came from the agriculture sector in 2022, the Commerce Department report showed.
As of 2024, $24.65 billion of agricultural goods were exported to China, the U.S.'s third biggest buyer after Mexico and Canada, according to USDA data.
The escalating trade war has sent buyers looking elsewhere for soybeans, the biggest agricultural commodity exported by the U.S., Reuters reported.
Contributing: Jessica Guynn
Kinsey Crowley is a trending news reporter at Paste BN. Reach her at kcrowley@gannett.com. Follow her on X and TikTok @kinseycrowley or Bluesky at @kinseycrowley.bsky.social.