Trump's tariffs on China have cost electronics companies $71.5 billion

Trump's new tariffs on China are about to take effect on Sunday (September 1st) local time. CNBC did some calculations for Trump that day, emphasizing that "the trade war has already cost (US) electronics companies $10 billion (about 71.5 billion yuan), and the situation will be worse (starting) on ​​September 1st." CNBC also said that (US) consumers' wallets will begin to be hit.

CNBC cited an earlier statement in the Federal Register that the Trump administration will impose a new round of tariffs on Chinese goods imported into the United States starting Sunday. This means that from September 1, (US) electronics companies will have to pay a 15% tariff to the US government when importing TVs, smart speakers or drones from China.

“This will ultimately increase prices for small appliances and other products for Americans,” said Bronwyn Flores, a spokeswoman for the Consumer Technology Association (CTA), a trade group that represents 2,000 different companies in the electronics industry, including brands like Apple and LG and retailers like Walmart and Best Buy.

“It’s unlikely that consumers will see price increases starting on Sunday,” Flores told CNBC. “But you might start to see it on Black Friday in November, so if you’re looking to buy a new TV for the Super Bowl, you might want to consider buying one sooner.”

Image from CNBC

While previous rounds of tariffs have affected electronics, costing the industry a total of $10 billion since July 2018, the impact was mostly on components, according to CTA data. Now the tariffs are affecting more finished goods.

CNBC quoted trade experts as saying that the round of tariffs that will take effect on Sunday will impose additional import taxes on smart watches, fitness trackers, desktop computers, digital cameras and lithium batteries. According to CTA data, starting from Sunday, US$52 billion (about 372 billion yuan) worth of (US) consumer goods will be affected.

"The US-China trade war is about to turn to consumers." According to previous reports, as the Trump administration is about to impose a 15% tariff on about $125 billion worth of Chinese products imported to the United States on September 1, a considerable number of American businesses are in collective anxiety. They have jointly written to the president and copied senior government cabinet members participating in the China-US trade consultations, requesting the postponement or cancellation of the tariffs on Chinese goods.

The Chinese products that will be subject to a 15% tariff on September 1 include clothing, footwear, smart watches, Bluetooth headsets, flat-screen TVs, footwear, etc. "70% of the shoes sold in the United States are made in China," the United Press International (UPI) said on the 28th, and it is estimated that the tariffs that each American family needs to bear each year will soon reach $1,500 to $2,000.

In response to the Trump administration's unilateral escalation of a new round of tariffs on China, China has also announced a counterattack. China's State Council Tariff Commission has announced that it will impose tariffs ranging from 10% to 5% on about $75 billion worth of goods originating from the United States, which will be implemented in two batches starting from September 1 and December 15.

Gao Feng, spokesperson for the Ministry of Commerce, said at a regular press conference on August 29 that China firmly opposes the escalation of the trade war and is willing to solve the problem through consultation and cooperation with a calm attitude. The escalation of the trade war is not conducive to China, the United States, or the interests of people all over the world. China has sufficient countermeasures, but under the current circumstances, China believes that the issue that should be discussed is to cancel the further tariffs on $550 billion of Chinese exports to the United States and prevent the trade war from escalating further. China is making solemn representations to the United States on this. It is hoped that the United States will show sincerity and take practical actions to meet China halfway and promote the proper resolution of Sino-US economic and trade issues on the basis of equality and mutual respect.