The Trump administration's threatened increase in tariffs on imports from China could impact low-income families the most, says an analyst with The Heritage Foundation.
Unless something happens between now and September 1, the Trump administration will apply 10-percent tariffs on another $300 billion worth of goods from China. Tori Whiting of The Heritage Foundation is hopeful that doesn't happen.
"Ten percent is double the sales tax in most states – and it's going to be hitting low-income families the most, especially at a time when people are doing a lot of back to school shopping," says the trade economist. "So that'll increase prices on clothing, shoes, toys, school materials, even formula and pacifiers. It's just shocking on how much impact that will have."
President Donald Trump has long stated that China has been taking advantage of the U.S. Trade talks between U.S. and Chinese officials have been taking place, but there doesn't appear to be a deal anytime soon. Until that happens, Trump aims to hit China financially – as reflected in some of his recent comments.
"I think they want to try to make a deal with us, but I'm not sure, because the word is, I feel they want to wait until they get … a new president in a year and a half so they could continue to rip off the United States like they've been doing for the last 25 years," Trump said at a campaign rally last week in Cincinnati.
USA Today reports the tariffs could add $100 to the price of an iPhone. Whiting, who is no fan of tariffs, doesn't think that's a stretch.
"Apple did some studies earlier last year when the White House was considering adding them to the third round of tariffs on China, and they ended up getting removed from that list," she continues.
"There were some projections out there that were in that realm, and we're talking about iPhones going up, Apple watches, all those sorts of things. And I'm sure a lot of people have those things on their Christmas list and were planning on buying them on Black Friday, [so] the deals might not be as good as they usually are."
China has already stated that it will retaliate with tariffs on U.S. goods should the Trump administration go forward with its tariffs on additional goods from China.