President Trump just announced he was ramping up his across-the-board retaliatory tariffs on all Chinese goods to a staggering 125%. The stakes of this move are high because much of what American consumers buy every day originates in Chinese factories.  

More than half of U.S. imports from China fall into just three categories: electronics, apparel, and toys, which all have broad and steady consumer demand. That helps explain why America imports more from China than from any country besides Mexico, with total imports in 2024 hitting approximately $439 billion.  

Electronics are the largest slice of the pie. China is the main supplier of smartphones, laptops, tablets, and televisions to the tech-hungry U.S. market. Apple’s iPhone, for example, is assembled in China, and the proposed tariffs could push the price of a new model up by over $300, according to estimates reported by?The Guardian. Clothing is another major import. The United States sources a significant portion of its apparel from China, and tariffs could increase prices by roughly 33 percent. Toys are also dominated by Chinese manufacturing. More than 80 percent of toys sold in the U.S. are made in China, and industry leaders have warned prices could double if tariffs take effect. 

Adding to the discomfort is the fact these are the exact products which have historically trended downward in price. Thanks to cheaper overseas production and supply chain efficiency, goods like TVs, clothing, and toys have become steadily more affordable for U.S. households. A 65-inch LCD television that cost $1,500 a decade ago can now be found for under $500. Clothing once consumed over 10 percent of a household’s budget; today it is closer to 3 percent. Tariffs of this magnitude could reverse that trend. 

Those lower prices go hand-in-hand with why China dominates these sectors in the first place. After China initiated economic reforms in 1978 and joined the World Trade Organization in 2001, it rapidly expanded its manufacturing base. Low labor costs, extensive infrastructure, and an integrated ecosystem of factories and suppliers enabled China to produce goods quickly and at scale. By 2010, China had overtaken the U.S. as the world’s largest manufacturing nation, while U.S. companies took advantage of that system to offer lower prices to consumers. 

Imposing a 125 percent tariff on those imports can raise prices and disrupt a supply chain that has kept consumer goods affordable for decades. Some businesses may seek alternate suppliers, but those changes are costly and take time. In the short term, many are expected to pass the cost of the tariff directly to consumers. 

If the U.S.-China trade escalation continues, it will touch nearly every household. It would increase the cost of electronics, apparel, toys, and other basic goods. And it would mark a significant shift in the economic relationship between the United States and China – one that consumers are likely to feel quickly and personally.