China retaliated as Donald Trump's tariffs began on Tuesday. The nation said it would put its own tariffs on U.S. goods, restrict some exports and investigate Google.
A 10% tariff went into effect on Chinese products, with the goal of pushing the nation to curb fentanyl shipments to the U.S. In response, China said it would put a 15% tariff on liquefied natural gas and coal coming from the U.S. Crude oil, agricultural machinery, larger cars and pickup trucks would face 10% tariffs, Axios reported.
China said it would put restrictions on the export of some minerals used to make high-tech products, The New York Times reported. The nation also announced an antimonopoly investigation into Google, which is blocked from China’s internet.
Tariffs that were set to begin on America’s other big trading partners, Canada and Mexico, have been delayed for 30 days while negotiations continue. Trump has said the countries are not doing enough to curb undocumented immigrants and drugs.
Many Chinese goods already face import taxes held over from Trump’s first term.
American shoppers could end up paying more for products shipped from there. Companies importing goods with tariffs often pass the extra costs on to consumers.
"WILL THERE BE SOME PAIN?" Trump posted on social media Sunday. "YES, MAYBE (AND MAYBE NOT!) BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID."
China is the largest furniture exporter in the world, according to data from the Home Furnishings Association, a trade group that lobbies on behalf of home goods retailers. In 2023, $32.4 billion in furniture was imported into the U.S., 29% of which came from China, the group said.
Nearly all footwear is imported to the U.S., and 37% of that came from China in 2023, according to data from the U.S. International Trade Commission.
Most children's toys sold in the U.S. are made in China. "We know that if tariffs hit, that prices are going to go up and it's going to affect the consumer. And so we're absolutely in panic mode in our industry," Jay Foreman, CEO of the Florida-based company Basic Fun!, told NPR in December.
"You're going to see a $30 Tonka Mighty Dump Truck become a $45 Tonka Mighty Dump Truck," Foreman said. "The prices on so many things that consumers buy in places like Walmart and Target and on Amazon will spike."
E.l.f. Beauty, a drugstore makeup brand popular among younger shoppers, makes about 80% of its makeup in and around China. E.l.f. CEO Tarang Amin told CNBC the company could be forced to raise prices if the tariff hikes take effect.
Cara Michelle Smith contributed reporting
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