American Consumers Cannot Afford Trump’s Trade Policy any Longer

By Yating Wang

February 17, Trump readdressed on X that he will charge “a reciprocal tariff for the purpose of fairness.” He couldn’t make it more clearer: everything is about reciprocity, a matter of ensuring that other nations do not take economic advantage of the United States.

He did a good job on bringing fairness to US trade with China. In 2018, the US first targeted Chinese robotics, aerospace, and automobiles worth $50 million by adding an additional 25 percent tax. A few months later, China slapped the same amount of tax on soybeans, pork, aircraft and automobiles.

Having been heavy on rhetoric, he promised to impose tariffs of at least 60 percent against Chinese imports if reelected, and he didn’t wait to impose an additional ten percent tariff on imports from China and Hong Kong after he took office. Soon, China responded with an even steeper retaliatory tariff at 15 percent on American coal and liquefied natural gas.

One of the most damaging changes is that Chinese imports valued under $800 are no longer protected by the “de minimis” exemption, which previously allowed them to enter the U.S. duty-free. These imports, if Trump could just be more honest with his people, are everyday products that translate into the weekly purchases in which millions of Americans would make either in grocery stores, Amazon, or rising Chinese e-commerce giants such as Shein or Temu.

The numbers alone tell just how much Americans rely on cheap imports from China. De minimis imports from China accounting for roughly one-third of the $54.5 billion total de minimis imports from all countries in 2023. In 2024, over 70 percent of imported cookware and tools and more than 60 percent of imported toys, games, and sporting goods came from Chinese manufacturers. Even in sectors where reliance is slightly lower, such as cell phones and other household goods (57%) and apparel (38%), China remains a dominant supplier.

Chart made by Yating Wang
Chart made by Yating Wang

From phone cases one can get rid of quickly, 6-pair of socks, a new lamp to a piece of dish cloth and your child’s favorite lego set - most of these are manufactured in China or assembled with Chinese-made components. Trump’s tariffs do nothing to change the reality that American consumers—especially those in lower-income brackets—depend on these imports.

The difference now is that Trump even stops pretending to care. When people received warnings from UPS saying there might be potential tax charges on their orders from Amazon and Shein, how could they forgive Trump for turning a blind eye on how much reliance the Americans have on everyday retail goods?

For Trump, an extra 10 percent charge on those low-value goods is a mere cost to meet his high-stake economic vision. For the rich, it is an afterthought at most.

But the average American consumer cannot afford to alway pay an extra penny or more on every single essential product for the next four years. Suddenly, replacing a broken phone charger, purchasing school supplies, or affording basic household goods becomes more expensive for the average American. At first, paying an extra $2 for a phone case seems like no big deal. The price goes from $11.99 to $13.99, and you brush it off. But soon, that same hike shows up on everything you buy. It starts with one item, then another, then another. Before long, those small increases add up, and what feels like a minor change becomes a noticeable dent in your budget.

Americans are clearly aware of who is paying the price. No one can bear watching his monthly credit card bill snowballs faster than anticipated. With inflation already not news, Trump's reckless tariff targeting China-manufactured low-value goods is doubling up hardship on those who can least afford it, squeezing people’s household budgets.

Regardless of whether Trump’s economic nationalism results in a fair trade or a pointless brinkmanship, at least his first presidency tried to bring jobs back to the US even though previous efforts in shifting manufacturing out of China have failed. Domestic manufacturers often opted for alternative low-cost manufacturing nations such as Mexico or Vietnam. The total trade deficit, in practice, ballooned from $516.9 billions in 2017 to $653.7 billions in 2020. A figure that had not been observed since 2008.

Chart made by Yating Wang

One might argue that tariffs shield domestic industries from foreign competition, even if it disproportionately benefits wealthy stakeholders. But the latest round of tariff targeting China crosses a new line. It directly threatens the basic interests of American consumers: the ability to afford everyday essentials at reasonable prices. This time, the burden isn’t just on corporations or supply chains; it’s hitting consumers where it hurts most—at the checkout.

China, meanwhile, instead of absorbing the cost passively, has adapted under Trump’s wayward tax imposition. In 2024, Chinese manufacturers such as Temu began to establish warehouses closer to US consumers. Instead of shipping 10 to 20 individual orders per day from China, sellers now can consolidate inventory and ship in bulk to U.S. warehouses, significantly reducing per-unit shipping costs and improving delivery efficiency. These moves will ultimately blunt the impact of Trump’s tariffs on Chinese exporters while leaving American consumers stuck with higher prices.

Without any mention of supply chain improvements or domestic manufacturing incentives, Trump’s trade policies offer no long-term solutions - only short-term pain for consumers. And he knows it. He understands the repercussions all too well but chose to push the working class even closer to the edge. For him, the appearance of being “tough on China” is more important than the financial burden he is imposing on millions of Americans.

Ordinary Americans are bearing the brunt far more than foreign adversaries. Every extra cent tacked onto an everyday purchase is another reminder that Trump’s trade policies do not serve them. They serve a political narrative, while everyday Americans foot the bill. As credit card debt mounts and wages struggle to keep up with rising costs, it is clear: Trump’s tariffs have little to do with diligent planning - a tax on American consumption, plain and simple.

His goal to reduce trade deficits, however, did not yield the intended results. In 2018, Trump broke the record, resulting in a trade deficit of 417.3 billions owed to China.