Impending Tariff Increases Could Impact American Consumers' Purchases of Everyday Products

As many Americans contemplate purchasing a new microwave, they might soon find themselves opting for takeout instead. A staggering 90 percent of microwaves imported into the United States last year were sourced from China, highlighting Beijing's significant influence over the global export market, where it controls approximately three-quarters of the total.
This kitchen staple is just one of over 50 items with an import value exceeding $1 billion that are now subject to former President Donald Trumps newly imposed 125 percent tariffs. In fact, over three-quarters of mobile phones, video game consoles, food processors, and electric fans that were brought into the US last year originated from Chinese manufacturers.
Parents looking to buy toys for their children will similarly feel the repercussions of these tariffs. In 2022, China accounted for 75 percent of the dolls, tricycles, scooters, and various wheeled toys imported into the US. Notably, Mattel, the iconic toymaker behind the Barbie doll, has expressed concerns that it may have to raise prices in the US to counteract the financial impact of these tariffs. This warning comes amid Trumps ongoing escalation of the tariff conflict, with Mattel noting that 40 percent of its products are manufactured in China.
Chad Brown, a senior fellow at the Peterson Institute for International Economics, emphasized that the speed and scale of Trumps reciprocal tariffs mean that the costs are likely to be passed on to American consumers. He explained that tariffs on Chinese goods are being implemented at much higher levels and at a significantly faster pace than during the previous administration, affecting a broader range of consumer products than before.
There is a much larger risk of substantial price increases for consumers purchasing these kinds of products today, Brown stated, underscoring the potential burden on American households.
In addition to kitchen appliances and toys, consumers hoping to stay cool during the summer months may also face rising costs. An astounding nine in ten electric fans sold in the US last year were imported from China, along with 40 percent of self-contained air conditioning units. Chinas stronghold on these global exports complicates the search for alternative manufacturers.
Allie Renison, a former UK trade department official now with SEC Newgate consultancy, noted that American and Western businesses have been gradually relocating their supply chains away from China to other Asian countries in recent years. However, many of these businesses still rely on Chinese raw materials and components for their assembled products. Renison pointed out that much will depend on how comprehensive and stringent the product-specific regulations imposed by the US will be, as well as how amenable these other countries are to agreements with the US.
Renison stated, The challenge is less about identifying alternative suppliers, as many Southeast Asian nations are ramping up their production of industrial goods, and more about the conditions the US will enforce in its trade agreements with those countries.
Transitioning manufacturing away from China proves particularly challenging for electronic products such as game consoles and smartphones, primarily due to their intricate supply chains and the specialized skills required for their production. Jason Miller, a professor at Michigan State Universitys College of Business, noted that rapid decoupling from China will be a complex task, especially for goods like smartphones where establishing new capacities, training workers, and putting alternative supply lines in place are all necessary.
Apple provides a pertinent example, as the tech giant has attempted to shift some of its manufacturing from China to India. Despite these efforts, a staggering 80 percent of Apples smartphone production for the US still takes place in China, according to technology market research firm Counterpoint. Even if Apple were to allocate all of its iPhone output from India solely for the US market, it would still only meet roughly half of the 50 million-plus devices the company ships to America annually, as noted by Bank of America analyst Wamsi Mohan.
Overall, four out of five smartphones and game consoles imported into the US last year were manufactured in China. While Trump has not ruled out the possibility of exempting certain US companies from reciprocal tariffs, consumers are left to wonder if some products may simply become unavailable.
As Miller concluded, The greatest concern for consumers is that importers, fearing they cannot pass on tariff-related cost increases to shoppers, may choose to discontinue imports of some goods from China altogether.
Additional reporting by Jonathan Vincent.