Illustration: Liu Rui/GT
Editor’s Note:
As the US imposed hefty tariffs on China, American consumers who rely on “Made in China” products have felt the adverse effect of the tariffs – some have dragged empty suitcases across the Pacific Ocean to go on shopping sprees in China; others have found that certain daily products in the US have become “luxury” items they cannot afford.
This is the ninth piece of the “Wisdom on China&US” series, focusing on how US consumers are reacting to the US’ government’s tariffs on Chinese products.
Dante Muñoz, a US-based video content creator
Some Americans recently have come to China to stockpile goods, everyone I know who goes to China from the US is so impressed with the high-quality consumer goods for affordable prices, as well as the designs and technology that we don’t have in the US. Even though it might not be a very quick change overnight, Americans have been feeling the rising costs of consumer goods and the lower quality of the same consumer goods. I have been to China several times. During my most recent trip, I didn’t even have enough room for all the things I wanted to buy for my life back in the US. I always wish I had more space in my suitcase.
“Made in China” products are everywhere in the US. Even things that are made in America might rely on Chinese parts. It’s very good for economies to have areas of specialization. As someone who wants to see economic prosperity around the world, it makes me sad to see that the US doesn’t want to focus on our own strengths but instead becomes very defensive about China’s growing strength.
China has done so much for world peace and for economic prosperity. It integrates the markets, and encourages investment and win-win cooperation. That is going to do a lot to help deescalate the tensions right now. Hopefully the current US administration is not too crazy to continue escalation because China is serious about its sovereignty and serious about not being bullied. I think more and more Americans understand that Chinese people are not an enemy, they’re hardworking and they innovate on their own. It’s a big world. There’s plenty of space for everyone, and we can focus on what we’re good at. We’re very far apart geographically, but we’re becoming closer and closer economically and culturally, and we can both benefit from that.
Christy Franklin, a resident of the US state of Wyoming
For ordinary Americans like myself who are living in the US, “Made in China” products have become an important part of our lives. With prices going up for food, gas, electricity and housing, people here look for products that we can afford. For many of us it is already hard enough to make ends meet. Day to day, it can be a struggle to put food on our tables, pay our bills and have a place to live. We should not need to worry about everyday products and if we can afford them.
I live in a small town in the state of Wyoming. A large part of the population here are farmers, ranchers, miners, construction workers and their families. Many have realized that products made in China are not just low cost, but the quality is also good.
For example, I saw a video on X with a farmer talking about purchasing farm equipment made in China versus the same equipment made in the US. This person talked about “Made in China” equipment being less expensive and more affordable than the American made and could even be better quality. That person said, “I can’t afford American. I just can’t.” Many of us here feel the same way.
The other day, I went to a local hardware and supply store. As I was looking at items, I did make an effort to see where they were made. Most were made in China with just a few made in other Asian countries. Some products were small appliances, dishes, clothing and tools. I was surprised the top brands that are known for their good quality like DeWalt tools and Yeti travel mugs which I had planned to buy were also made in China.
My television, lamp, coffee maker, toaster, rice cooker, toolbox, etc. are all made in China. I purchased these at places like Walmart, Target and Amazon. I’m sure that a high percentage of Americans also shop at these places, so we can assume that they also have “Made in China” products in their homes.
But with the high tariffs, our fear is that prices on “Made in China” products will increase or these products will not be available anymore.
I and other people here in the US are also seeing the effects of the high tariffs. Sometimes I buy products directly from sellers in China. One day I was looking up a product on eBay from a seller in China. The cost of the product was $34 and the shipping cost was $200. Shipping costs are usually not that high when I get products directly from China so I’m sure it’s because of the tariffs. It became a luxury item and paying that much for the product and shipping is something I can’t afford.
The high tariffs need to stop. They are not just hurting the people here but ultimately everyone.
Sourabh Gupta, a senior fellow at the Washington-based Institute for China-America Studies
The US government did indeed blink on the issue of reciprocal tariffs. In mid-April, US tariffs on China climbed to 145 percent, but by late April the White House had declared, 145 percent is very high; it will come down substantially. Financial markets were blinking red and telegraphing a loss of confidence in the lack of competent policy decision-making in the White House. Worse could have followed in bond and stock markets. The anxiety among consumers is palpable too, be it regarding future iPhone purchases, auto purchases, or even checkout at the grocery counter. Yet the administration remains determined to wage its trade wars against all and sundry – and with a particular focus on China, albeit at a pace that will be more digestible to markets. And as for domestic consumers, the administration’s hope is that they will value the forthcoming tax cuts and the return of a few manufacturing jobs more than the higher prices they will encounter at the checkout counter. However, it is gratifying that the current discontent among markets and consumers has been able to exert a certain discipline on this administration.
At 145 percent, the tariffs essentially amount to a US trade embargo on China. Chinese goods, including intermediate goods that are assembled and embodied in final goods, be it in the US or in third country markets and thereafter exported to America, play an important role in holding costs down as well as enabling the US economy to operate at its productivity frontier. Besides, the product complexity of goods exported to the US from China is far greater than is the case with goods flowing the other way. As such, there will be materially greater switching costs at the US end due to the tit-for-tat measures, and US industry faces a difficult adjustment period and will come off poorer on the whole.
Now, the US still heavily depends on Chinese manufacturing to meet its domestic demand. Major American retailers have warned the government that consumers may face empty shelves and rising prices next month, and that supply disruptions could last through Christmas. Under sustained, high tariff pressure, both Chinese producers and American consumers will, at some cost, shift away from the American market and from Chinese products, respectively. In relative terms, it is hard to quantify who loses more. But at the end of the day, both sides lose – a quintessential lose-lose proposition, unfortunately.
