New tariffs on $112 billion of Chinese goods, imposed by the administration of the U.S. President Donald Trump, came into power on Sept. 1, according to CNBC.
Starting in September, the price of the targeted Chinese goods for U.S. consumers will increase by 15%.
Trump announced new tariffs on a set of $300 billion of Chinese imports in August, as U.S. representatives reportedly did not succeed in their negotiations with Chinese officials.
China responded with retaliatory tariffs that targeted a total of $75 billion U.S. goods. The actual tariff rate varies between 5% and 10%. Moreover, Beijing completely suspended purchasing of U.S. agricultural products. China’s tariffs are also set to come into power in September.
Although Donald Trump has repeatedly claimed that the burden of the trade war is carried by Chinese exporters, American tariffs, in fact, are likely to affect U.S. companies and households. Per JP Morgan Chase estimates cited by CNBC, the new set of tariffs will cost the average American household a $1,000 per year.
In addition to that, a recent Wells Fargo analysis revealed that over 30% of U.S. companies are blaming their unprofitable second quarters on tariffs.