President Donald Trump has escalated his trade war with China, confirming a staggering 104 per cent tariff on goods imported to the US.
The move will hit US consumers hard, with Chinese imports spread across major industries and supply chains – and Apple’s iPhone in the firing line.
The sky-high tariffs came after China hit back with retaliatory measures of their own in what has become a tit-for-tat levies exchange between the two countries.
“If the US insists on having its way, China will fight to the end,” the Chinese commerce ministry has warned, and on Wednesday announced an extra 84 per cent tariffs on the US.
Of all the countries hit with tariffs, Americans will likely feel the impact of China’s most – and soon.
Meanwhile, as the world’s largest exporter, China sells products to nearly every country. This adds a layer of economic protection against Trump’s tariffs, since the US makes up just 14 per cent of its goods exports.
The 104 per cent total tariff on imported Chinese goods is the highest of any country. And more importantly, American consumers are highly reliant these goods, through many parts of the supply chain.
Unsurprisingly, electronics and machinery are the top goods imported to the US from China, at $208bn in 2023 alone.
These products span all elements of Americans’ lives; from computers to domestic appliances, and electric batteries.
Smartphones are the biggest single export (9 per cent of the total) – and not just Chinese brands such as Huawei, but also American tech leaders including Samsung and Apple which manufacture in China.
On a wider scale, drugs and medicines will likely face price shocks as pharmaceutical companies import billions in ingredients from China each year.
This expense will ultimately fall to patients, warns Dr Michael Aziz, a board-certified internist and regenerative medicine specialist.
“The effect of tariffs on prices of these drugs will be mostly be absorbed by patients, retail pharmacies versus insurance companies,” said Dr Aziz.
“I believe that the rapid application of those tariffs leaves doctors and patients totally unprepared. Many will skip their meds if they can’t afford those generic drugs.”
