US consumers may pay the price if new tariffs on China take effect
Updated 10:49, 23-Aug-2018
By CGTN’s Zhao Yunfei
["china"]
02:06
A proposed 25-percent tariff on selected Chinese imports is open to public comment in the US until the end of August. With a public hearing regarding tariffs on more Chinese products scheduled this week, some are starting to see the negative effects of potential tariffs.
Higher tariffs may be on the way for Chinese goods. Just three weeks after Washington issued a list of items facing tariffs of 10 percent, the figure is now up to 25 percent on certain Chinese goods valued at 200 billion US dollars.
Among them, 48 percent fall into the intermediate goods category, capital goods account for 30 percent and consumer products, 22 percent. Over one-fifth of the goods in question may incur additional charges that will be passed on to American consumers.
"Many of these goods are usually purchased by middle-class people. These are the costs that could really pass on American people, and they'll have to pay a price,” said John Gong, a professor at the University of International Business and Economics in Beijing.
“I think there is a very clear sign that we are going to see inflation if this round of tariff is really being implemented."  
Experts say the tariffs will increase total annual costs for the average American family to 127 dollars if companies pass the entire additional fees on to consumers.
But the overall impact will be much higher. The US relies heavily on China for some products on the list, such as wood wares, furniture and knitted fabrics. And for China, the industry that will be hit the hardest is high-end manufacturing.
China has reiterated that it does not want a trade war, but is also not afraid of one. Beijing has taken further steps to speed up its economic reform agenda to reduce the negative effects brought by the trade war and to be proactive in averting an escalation of the frictions.