The new tariff war between the United States and China is already having a direct effect on the domestic economy, especially on the cost of living for millions of consumers, as everyday products such as iPhones, clothing, coffee, beer, wine and seafood are already beginning to increase in price and experts anticipate even greater increases in the coming weeks.
It all started when Donald Trump’s administration imposed tariffs of 104% on Chinese imports, to which China responded with tariffs of 84% on US products. This escalation is affecting critical supply chains, and multinational companies such as Apple, Nike and Best Buy are already evaluating price increases.
More expensive technology and fashion
Apple, whose iPhones depend on production in China and other Asian countries, already faces assembly and material cost pressures.
According to the SEC, more than 90% of its production is concentrated in Asia.
Everyday products are already starting to increase their prices
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As a result, analysts anticipate that Apple devices will increase their prices by up to 15% if the tariffs remain in place for more than three months.
In the fashion sector, Nike produces 16% of its products in China, another 28% in Vietnam and 15% in Cambodia.
With these countries impacted by the new tariffs, imported clothing and footwear will also increase their prices in U.S. stores.
What about supermarkets?
According to food analyst Phil Lempert, up to 50% of supermarket products could be affected, from ingredients to finished products.
Coffee, 80% of which is imported from Latin America, is one of the most sensitive items for the Hispanic consumer.
In addition, seafood, of which the U.S. imports 85%, and alcohol, mainly Mexican beer and European wines, will suffer price increases due to new tariffs on aluminum and finished products.
According to Bloomberg and Consumer Edge, consumers have already begun to stock up on imported products.
With sales increases of up to 21% in instant coffee, 18% in ketchup and 3% in beer.
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