{"id":124435,"date":"2025-11-10T07:03:49","date_gmt":"2025-11-10T07:03:49","guid":{"rendered":"https:\/\/chezaspin.com\/blog\/index.php\/2025\/11\/10\/tariff-troubled-us-fears-not-so-happy-holidays\/"},"modified":"2025-11-10T07:03:49","modified_gmt":"2025-11-10T07:03:49","slug":"tariff-troubled-us-fears-not-so-happy-holidays","status":"publish","type":"post","link":"https:\/\/chezaspin.com\/blog\/tariff-troubled-us-fears-not-so-happy-holidays\/","title":{"rendered":"Tariff-troubled US fears not-so-happy holidays"},"content":{"rendered":"

BEIJING, China, Nov 10 \u2014 With Thanksgiving and Christmas just around the corner, many Americans facing rising prices are hoping the United States quickly resolves its tariff impasse with its closest trading partners, including China.<\/strong><\/p>\n

\u201cBoth the US and China do a lot of trade with each other and should continue to do a lot of trade with each other as the world\u2019s biggest superpowers,\u201d Kegan Bordeaux, 39, a concessions worker for Broadway theaters in New York City, said.<\/p>\n

\u201cI know that the US and China don\u2019t have the best relationship right now and haven\u2019t really in the past, but it does need to come to a resolution because it\u2019s getting expensive out here. I see prices going up. New York\u2019s already an expensive city to live in, but when you just want to buy a bag of rice, it\u2019s a lot. It\u2019s starting to go up more.\u201d<\/p>\n

Gary C. Hufbauer, a nonresident senior fellow at the Peterson Institute of International Economics and an expert on international trade, said: \u201cThrough August 2025, US business firms have absorbed about 75 percent of the tariffs through compressed profit margins.<\/p>\n

\u201cConsumers have paid the other 25 percent in higher prices, particularly household items like clothing, footwear and furniture. This division of the burden is not sustainable. Within a few months, certainly by the spring of 2026, most of the burden will be shifted to consumers through higher prices.\u201d<\/p>\n

A Goldman Sachs report released in October had similar findings. It estimated US consumers are footing at least 55 percent of the tariff costs with US businesses paying 22 percent and foreign exporters 18 percent. It predicted that US consumers would end up paying up to 70 percent of the levies by the end of 2026.<\/p>\n

The tariff rates on foreign countries have varied widely this year and are constantly subject to change. As of November, a 10 percent baseline tariff existed for many countries.<\/p>\n

India and Brazil face a 50 percent tariff, while the European Union\u2019s goods are subject to a 15 percent tariff.<\/p>\n

President Xi Jinping and US President Donald Trump met in Busan, South Korea, in late October, their first face-to-face meeting since 2019.<\/p>\n

During the talks, agreements were made on the tariff issue. Trump said the tariff on Chinese imports would be lowered from 57 percent to 47 percent.<\/p>\n

Customers shop at the Reading Terminal Market in Philadelphia, Pennsylvania, on Oct 29. MATT ROURKE\/AP<\/p>\n

Out of hand<\/strong><\/p>\n

However, the impact of the tariffs is already being seen in the US. Consumer prices have been higher from April to September, after the Trump administration launched reciprocal tariffs, data from the Bureau of Labor Statistics shows.<\/p>\n

Several shoppers China Daily spoke to complained about the rising prices of chocolate, coffee, apparel, furniture and food.<\/p>\n

Michael David, 75, a retiree from Syracuse, New York, said: \u201cI just know that the (prices) are high \u2026 I mean, the way this country is doing tariffs, it just doesn\u2019t make any sense. Because it changes every other day \u2014 the figures, the amounts are out of hand.\u201d<\/p>\n

David added it was important for the US and China to get along as they\u2019re at the top of the \u201ceconomic food chain\u201d.<\/p>\n

\u201cSo, they have to come to terms. The US can\u2019t exist without imports from China in everything \u2026 in this country, we have to manufacture more things. But we could never be totally independent. I mean, it\u2019s a world economy,\u201d he said.<\/p>\n

In 2024, China\u2019s exports to the US exceeded $524.7 billion according to the Chinese General Administration of Customs. They included: appliances, toys, games, apparel, machinery, and electronics. Meanwhile, the US imported $438.7 billion in goods from China, the United States Trade Representative said.<\/p>\n

US importers brought in goods earlier to try and offset the tariff costs, Jonathan Gold, vice-president of supply chain and customs policy at the National Retail Federation, told China Daily. But not all have been able to absorb the extra fees and costs. Some have been forced to raise prices to recoup lost revenue.<\/p>\n

Tariffs are a top concern among shoppers ahead of the holiday season, with 85 percent anticipating higher prices because of the levies, NRF\u2019s annual consumer survey released in October found.<\/p>\n

Abby Hogue, a 28-year-old photographer, was recently out shopping in a busy New York area looking for Christmas ornaments. She was \u201cdisappointed\u201d that prices seemed higher this year compared with last year\u2019s holiday season.<\/p>\n

\u201cMy family is very big on the holidays. We\u2019re a pretty big family and that\u2019s the one time that we can all be together. My brother\u2019s flying in from the Netherlands with his new baby and it\u2019s going to be the first time that I\u2019ve seen my niece, so, all in all it\u2019s a pretty big deal for my family and I love being in a Christmas spirit.<\/p>\n

\u201cIt\u2019s been a hard year, so I was looking forward to it and it\u2019s kind of a disappointment knowing everything (like prices) is getting to that too.\u201d<\/p>\n

Most consumers still plan to spend hundreds of dollars on holiday gifts, decorations and food, NRF\u2019s survey found.<\/p>\n

At least 90 percent of all artificial Christmas trees are made in China, according to the US Department of Commerce. And, over 20,000 types of Christmas products, such as ornaments, tinsel and decorations are mass produced in Yiwu International Trade City in Yiwu, Zhejiang province.<\/p>\n

Hogue added: \u201cI definitely think that the China tariffs are affecting everyday goods and the consumer. That makes sense as the cost of goods is higher and that trickles down to the consumer, and that\u2019s tough.\u201d<\/p>\n

White House spokesman Kush Desai pushed back on the notion that tariffs were hurting Americans. \u201cThe president and administration\u2019s position has always been clear: While Americans may face a transition period from tariffs upending a broken status quo that has put America last, the cost of tariffs will ultimately be borne by foreign exporters,\u201d he said in a statement.<\/p>\n

Thomas Fullerton, a professor of economics and finance at the University of Texas at El Paso, said it has been clear for over a year and a half about who actually bears the brunt of costs. \u201cLower-income US consumers will face the biggest consequences from the new tariff hikes,\u201d he told China Daily.<\/p>\n

He added: \u201cThe economy entered 2025 in good shape and that momentum is still largely in place \u2026High tariffs are needlessly raising the costs of raw and intermediate inputs that contain steel, aluminum, copper, and lumber.\u201d<\/p>\n

The year-to-date revenue created by tariffs was at least $215 billion up until the end of September\/October, according to the Trump administration.<\/p>\n

Shoppers look at canned fish on display on Nov 4 at a market in South Burlington, Vermont. Food prices have increased nearly 30 percent since 2020, according to the US Bureau of Labor Statistics. ROBERT NICKELSBERG\/GETTY IMAGES<\/p>\n

Candy crush<\/strong><\/p>\n

The sweet taste of chocolate also soured amid higher prices in stores, creating more tricks than treats this Halloween.<\/p>\n

Candy was 10.8 percent more expensive compared with 2024, according to Groundwork Collaborative, a progressive think tank. Last year, Americans spent about $7.4 billion on chocolate and candy for Halloween, the National Confectioners Association said.<\/p>\n

Ghana and the Ivory Coast, which together produce 60 percent of the world\u2019s cocoa, were hit by bad harvests due to adverse weather. Also at play were higher cocoa bean prices. Some US businesses that buy cocoa were hit by tariffs and had to pay farmers in Latin America.<\/p>\n

The levies have even threatened to upend the morning routines of Americans. A \u201ccup of Joe\u201d got pricier after Trump declared a national emergency in July and slapped a 50 percent tariff on coffee imports from Brazil.<\/p>\n

\u201cAbout 30 percent of US coffee imports come from Brazil,\u201d David A.Gantz, an economist at Rice University\u2019s Baker Institute for Public Policy, told China Daily. \u201cThe US is the largest consumer of coffee worldwide, with annual imports of beans and ground coffee estimated at around $8 billion worth per year.\u201d<\/p>\n

The average price of a pound of ground roast coffee was about $7.93 in May 2025, up from roughly $6.30 per pound (454 grams) on average in 2024.<\/p>\n

Gantz said coffee lovers will probably be willing to pay extra as the increased prices via the tariffs will be passed onto the consumer.<\/p>\n

He also warned: \u201cIncreased Trump tariffs on steel, aluminum, copper and automotive goods, and other goods imports from virtually all US trading partners, will have a far greater negative impact on the US economy than coffee tariffs.\u201d<\/p>\n

Trump used the emergency International Emergency Economic Powers Act and Section 232 of the Trade Expansion Act of 1962 to enact the tariffs. The move has faced opposition from senators from both sides of the aisle.<\/p>\n

On Nov 5, the US Supreme Court heard arguments over whether Trump has overstepped his use of the IEEPA to impose tariffs on nations worldwide. Some collected duties could be refunded depending on the court\u2019s decision.<\/p>\n

It is not just the US economy that will see fallout from the tariffs. Data from S&P Global estimates that tariffs could cost global businesses over $1.2 trillion this year and most of the costs could be passed onto the consumer.<\/p>\n

People wait in line to shop at a unique costume store in New York City on Halloween on Oct 31. [Photo provided to CHINA DAILY]<\/p>\n

Bitter harvest<\/strong><\/p>\n

The levies, or the reaction to them, have hit another important US sector \u2014 farming.<\/p>\n

Farmers, responsible for much of the domestic food supply, also export their crops such as soybeans and corn to China and the rest of the world. But soybean farmers have had very few sales this year in a backlash over the tariffs.<\/p>\n

The most recent US-China trade talks in South Korea led to China agreeing to buy 12 million metric tons of US soybeans through January in a welcome reprieve for the struggling US farmers.<\/p>\n

US Treasury Secretary Scott Bessent told Fox Business that China had also agreed to purchase 25 million tons annually for the next three years.<\/p>\n

Lia Nogueira, an associate professor at the University of Nebraska-Lincoln\u2019s agricultural economics department, said: \u201cJust thinking about the size of the market, the US is a big country, but if you compare it to the rest of the world, most of the world consumers are going to be outside of the US.<\/p>\n

A worker walks through rows of American-made furniture in Alexandria, Virginia, on Aug 7. NATHAN HOWARD\/BLOOMBERG via GETTY IMAGES<\/p>\n

\u201cIf you think about the production of particularly corn and soybeans, the amount of corn and soybeans produced in the US cannot just be consumed in the US,\u201d said Nogueira, an agricultural trade economist who researches agricultural policy, international agreements and non-tariff barriers to trade. \u201cSo, if we want to keep the production at the volume that we have right now or even increase, we have to sell it in other countries.\u201d<\/p>\n

Tariffs have also impacted trade relationships with Mexico, Canada, and the European Union. These three agricultural producers \u201caccounted for almost 60 percent of all agricultural sales to the US between 2020 and 2024\u201d, according to figures from the United States Department of Agriculture.<\/p>\n

A smooth trade relationship with these countries is important as Mexico is a major supplier of fruit, vegetables, and alcoholic beverages to the US. Canada exports vegetable oils, vegetables, processed food, baked goods and meat. And the EU sends wine, spirits and essential oils, USDA data shows.<\/p>\n

For more visit\u00a0China Daily<\/a><\/p>\n

For subscriptions on news from China Daily, or inquiries, please contact China Daily Africa Ltd on +254 20 6920900 or write to enquiries@chinadailyafrica.com<\/p>","protected":false},"excerpt":{"rendered":"

BEIJING, China, Nov 10 \u2014 With Thanksgiving and Christmas just around the corner, many Americans facing rising prices are hoping the United States quickly resolves its tariff impasse with its closest trading partners, including China. \u201cBoth the US and China do a lot of trade with each other and should continue to do a lot […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-124435","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/124435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/comments?post=124435"}],"version-history":[{"count":0,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/124435\/revisions"}],"wp:attachment":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/media?parent=124435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/categories?post=124435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/tags?post=124435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}