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Your next discount haul could be a lot more expensive.
The Trump administration is ramping up tariffs on imports from at least 60 of its trading partners, whose members of the cabinet claim have failed to “impose and effectively enforce forced labor laws.”
On Thursday, senior administration officials said countries that have already banned imports made with forced labor or have agreed to adopt and enforce them will face a 10% tariff on their exports to the United States. While countries that have not enacted laws will face an increased 12.5% tariff.
Those tariffs — an import tax paid when goods enter the US — will begin at 12:01 a.m. on July 24 and will replace a temporary 10% surcharge. The policy aims to “reward” countries with stronger labor laws by setting a lower tariff rate.
“The United States has had a forced labor import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same,” said US Trade Representative Jamieson Greer.
“Today’s action will begin to correct what is both a human rights abuse and a distortive trade practice to improve the welfare of workers everywhere,” Greer added.
Those facing a 10% tariff are: Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago and the United Kingdom.
Over 30 countries are bracing for the 12.5% spike, such as China, Australia, Brazil, Chile, Colombia, Costa Rica, Hong Kong, Philippines.
An Administration official noted that India was given a break with the lower 10% rate after it passed a law preventing products made with forced labor.
Earlier this week, President Trump hit Canada with 50% tariffs to combat what the administration described as “continuous discrimination” on American products.
A new round of tariffs will likely mean some more added costs for consumers. The Post put together a list of items that shoppers may see increase in the coming year.
Clothing
The majority of clothing from the US is imported, with some reports stating nearly $16.9 billion worth of apparel items and accessories were imported, with Vietnam leading at the helm. China and Bangladesh were other key import partners.
With all three of those countries at the highest tariff level, 12.5%, Americans will likely see their clothing costs increase. Raw fibers are typically cleaned, spun and dyed into cloth across large textile hubs in China, India and Pakistan.
Electronics
China’s largest export to the US is telephones and other mobile devices, accounting for over $50 billion in annual trade, according to OEC. With the new tariffs stamped onto China’s goods, those are likely to see a spike.
Additionally, the country supplies roughly 21% to 29% of US electronic imports, including smartphones, laptops, and circuit boards, according to the US Trade Commission.
Mexico is also a large electronics importer, supplying the US with insulated wires and cables, telephone and communication equipment and more. While the tariffs on Mexico didn’t necessarily increase, the new round replaces the expired rates.
Food and drink
Coffee drinkers may need to find new suppliers as tariffs on Brazil hit 12.5%. The country imported over $1 billion worth of java to the US and will likely tack on some charges for the average consumer.
Canada is also a major supplier of processed food products like baked goods, meat, vegetable oils, and vegetables. The country was also subjected to the higher tariffs, reaching 50%, meaning Americans will likely pay more for things like beef, pork, some seafood, maple syrup and more.
Homes
China, Mexico and Canada are among the largest US import sources for many construction materials and building products used in homebuilding. Canada supplies the US with a major amount of softwood lumber, which is widely used for framing houses. Additionally, it gives the US gypsum, aluminum, steel, and energy products.
Meanwhile, Mexico is a large supplier of cement, steel, glass, tile, stone, plumbing fixtures and other manufactured building components.
Not only will homebuyers see a spike due to the materials, but items inside the homes will also see an increase. While China does not export many raw materials, it does supply lighting fixtures, hardware, flooring, cabinets, appliances, tools and more.
Cars
According to reports, Mexico is the largest source of imported cars for the US by the value of vehicles purchased, ahead of Japan, South Korea, Canada, and Germany.
Some impacted vehicles could be GM, Ford, Stellantis, Toyota, Nissan, Volkswagen and Audi models built in Mexico. Canadian auto plants making SUVs and trucks could increase as well as any engines, transmissions or other auto components.
Higher prices may be new cars imported from the affected countries or any of the vehicles with many imported parts.
