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Trump's new tariff threat could make iPhones, toys and shoes more expensive

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iPhones. L.O.L. Surprise dolls. Nikes.

They could all get more expensive if President Donald Trump follows through on his threat to expand tariffs on Chinese imports to include an additional $325 billion in goods left out last year.

The administration is already moving ahead with plans to hike existing tariffs starting Friday on industrial components and other goods, from 10% to 25% — a warning shot to Beijing amid ongoing negotiations toward a comprehensive trade agreement.

Most consumer electronics, toys and shoes have so far been shielded, a strategic move that made the trade war almost invisible to American shoppers.

But Trump is running out of goods to tax, and the expanded tariffs he threatened over the weekend could result in a 25% tax on almost everything else the U.S. imports from China.

That would hit 100% of the toys and sports equipment imported from China to the United States, as well as 93% of the footwear and 91% of textiles and clothing, according to an analysis by the Peterson Institute for International Economics.

"These goods were deliberately set aside before because they would be painful for us," said Phil Levy, a senior fellow at the Chicago Council on Global Affairs who served as a senior economist for trade under President George W. Bush.

The renewed threat has toy companies big and small worried that they will have to raise prices, dragging down sales this holiday season.

About three-quarters of the toys sold in the United States are made in China, including the top-selling L.O.L. Surprise dolls, said Toy Association President Stephen Pasierb.

"We're in a low-margin, price sensitive business. If the price goes up by 25% on a $10 toy, people aren't going to buy them," he said.

https://www.kcci.com/article/trumps-new-tariff-threat-could-make-iphones-toys-and-shoes-more-expensive-1/27430703