[Text by Guancha Network, Wang Kaiwen] The逆行 of the Trump administration in tariff policies has caused strong opposition and concerns domestically in the United States.

The Financial Times published an article on April 12, pointing out that American consumers are highly dependent on Chinese products from microwave ovens to Barbie dolls, and under Trump's tariffs, they cannot quickly find alternatives, facing either rising prices or no goods available. Even some people may have to pay a high price just to enjoy a cool summer.

Last year, more than three-quarters of electronic game consoles, food processors, and electric fans imported into the U.S. were made in China; three-quarters of dolls, tricycles, skateboards, and other toys purchased by Americans were also made in China. At present, all American consumers who want to buy these products will face higher prices.

Even before Trump escalated the tariff war, Mattel, the manufacturer of Barbie dolls, warned that it might increase its prices in the U.S. to offset the impact of the tariffs. In addition to Barbie dolls, this American toy manufacturer also produces Hot Wheels cars and UNO cards, with 40% of its products manufactured in China.

On April 10, the U.S. government announced that the rate for "reciprocal tariffs" on Chinese imports would be further increased to 125%. In response, China firmly retaliated. On the same day, the Tariff Commission of the State Council announced that tariffs on American imports would be raised to 125%, and stated that given the current tariff levels, American imports already lack market acceptance possibilities. If the U.S. continues to impose additional tariffs on Chinese exports, China will not respond.

Chad Bown, senior researcher at the Peterson Institute for International Economics, said that compared to Trump's first term, the U.S. is imposing tariffs on Chinese products at higher rates and faster speeds, and involving many new consumer goods. These measures' speed and scale mean that costs are more likely to be passed on to American consumers.

"Now, when consumers buy such products, there is a much greater possibility of significant price increases," Bown said.

The Financial Times pointed out that for Americans who are unprepared for tariffs, wanting to have a cool summer might come at a high cost. Last year, 90% of fans imported into the U.S. came from China; 40% of standalone air conditioners also came from China. For both of these product categories, China dominates the global export market.

In February 2021, an assembly workshop for air conditioners bound for North America was seen in Huzhou, Zhejiang Province. Visual China.

Microwave ovens are also similar; China controls three-quarters of the global export market, and last year, 90% of microwave ovens imported into the U.S. came from China.

Aly Renison, former official of the British Trade Department and currently working at SEC Newgate Consulting, said that China holds a dominant position in many global export products, meaning finding alternative manufacturers is not easy.

She said that in recent years, American and Western companies have been shifting their supply chains from China to other Asian countries, but the assembled products still heavily rely on raw materials and components from China. In Renison's view, whether Chinese products can be replaced depends on how strict the rules for these specific products are and how "friendly" the relevant countries are toward the U.S.

For electronics like gaming consoles and mobile phones, moving manufacturing out of China is particularly difficult due to complex supply chains and high technical requirements for producing these products.

Jason Miller, professor at the Michigan State University Business School, said, "Rapid decoupling will be very difficult, especially for products like smartphones that require creating additional capacity, training workers, and establishing alternative supply chains."

Wamshi Mohan, an analyst at Bank of America, bluntly stated that even if Apple supplies all (about 25 million) iPhones produced in India to the U.S. market, it could only meet half of U.S. demand.

Although Apple has gradually expanded its business in India in recent years, market research firm Counterpoint Research estimates that about 80% of Apple's smartphones are still manufactured in China.

After a turbulent week in the U.S. stock market, on the evening of April 11 local time, U.S. Customs and Border Protection (CBP) quietly amended its tariff regulations, exempting certain products such as computers, smartphones, semiconductor manufacturing equipment, and integrated circuits from "reciprocal tariffs," without specifying any country. The Financial Times interpreted this as "the first signal of a slight easing of tariffs on China."

Notebooks and smartphones were the two most valuable products imported from China last year, with a total value of $74 billion. In the Financial Times' view, this exemption is a "huge victory" for major U.S. tech giants like Apple, Nvidia, and Microsoft, especially for Apple, as a large portion of its supply chain is concentrated in China.

However, Trump retorted on social media the next day, saying that the U.S. government had not announced any tariff "exemptions," but rather that related products had simply been transferred to another tariff category. Commerce Secretary Raimondo also told the media on the same day that these tariff measures were temporary, and these products would face separate categories of taxation in a few months.

Miller said that American consumers are most concerned about the possibility that importers, fearing they cannot pass on the cost of tariffs to consumers, may stop importing certain products from China, leaving consumers with nothing to buy. Reports indicate that last year, four-fifths of smartphones and gaming consoles imported into the U.S. were made in China.

BBC reported on April 12 that Trump's recent adjustments to tariff policies have left many American consumers feeling paralyzed and have pushed the average effective tariff rate on U.S. imports to the highest level in over a century. People generally expect tariffs to lead to price increases in the coming months, particularly for goods like clothing, leather products, electronics, and toys, many of which are made in China.

The report cited predictions from Yale University's Budget Lab, estimating that clothing prices could surge more than 60% in the short term, basic drug prices might rise by 12%, and food prices could increase by 2.6%. Overall, if purchasing patterns remain unchanged, a typical American household could face approximately $4,700 in cost increases due to new tariffs. As a result, panic-buying "stockpiling" has already occurred in many parts of the U.S.

While China has resolutely countered the trade war unilaterally initiated by the U.S., it has also repeatedly emphasized that trade wars and tariff wars have no winners, and protectionism offers no way out. China urges the U.S. to correct its mistaken practices and resolve trade disputes with all countries, including China, through equal, respectful, and mutually beneficial consultations.

This article is an exclusive contribution by Guancha Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7493085181193044480/

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