60% Tariffs on China Imports Could Hike Prices on Everything from Furniture to French Fries

The proposed tariffs on imports from China, Mexico, and Canada could significantly impact U.S. household budgets. Furniture imports from China, which account for 29% of the $32.4 billion total in 2023, could see price increases even if not the full 60% proposed. A $2,000 couch might cost $2,200 to $2,400 if production shifts to Vietnam, or up to $2,500 if moved to Mexico. The toy industry, with 80% of imports from China, could see a $20 Barbie doll rise to $31.20. Footwear, with 37% of imports from China, faces similar challenges. Automakers with plants in Mexico could see their earnings at risk, with potential tariffs of 5%, 10%, and 25% estimated to impact General Motors, Ford, and Stellantis by $13 billion, $25 billion, and $56 billion respectively. Mexican beer imports, like Modelo, could increase in cost by 16%, while avocados, with 90% coming from Mexico, might also see price hikes. Canadian goods, including cars and French fries, would also be affected, with potential increases in vehicle prices and the cost of everyday items like fries from McCain Foods.

Source: www.cnbc.com