With the announced tariffs on China already in place, and many more possible once the current 90-day pause on tariffs on most of the rest of the world expires, should Americans be bracing for prices to rise?
It’s looking like it- and it’s especially troublesome for an administration that came into office largely on the strength of dissatisfaction with continuing inflation.
The Inflation Crisis, Part II?
According to a Gallup Poll released this week, nearly 90 percent of Americans expect prices to rise as a result of tariffs.
Also in the poll, “70% of American adults believe the tariffs will end up costing the U.S. more money than it brings in from other countries in the short-term.”
Several companies have announced their intention to raise prices in response to the tariffs.
German sportswear giant Adidas announced Tuesday that it will raise prices on all U.S. products, citing the tariffs as the reason.
Perhaps more predictably, Temu and Shein, two companies known for cheap, Chinese-made products, have both announced plans to raise their prices.
Some products have even doubled in price in recent days with the addition of what the companies are calling “import charges,” per Bloomberg News.
Trump vs. Amazon
And then there’s Amazon.
The e-commerce giant on Tuesday morning floated a plan to list the amount of each price that had increased, due directly to the tariffs, on each product page next to the price itself.
About 70 percent of the products sold on Amazon are made in China.
White House press secretary Karoline Leavitt, appearing for a morning briefing alongside Treasury Secretary Scott Bessent, denounced the plan as “a hostile and political act by Amazon.”
By the end of the morning, Amazon had backed off, declaring that the idea to displace the tariff surcharges was “never approved” and is “not going to happen.”
However, despite that being scrapped, what hasn’t been scrapped is the price increases themselves.
The morning episode is also notable in that it once again finds Amazon at odds with the Trump Administration, after the company’s founder and largest shareholder, Jeff Bezos, feuded with Trump for the bulk of the president’s first term, over everything from the editorial stance of the Bezos-owned Washington Post to Pentagon contracts that Amazon was bidding on that Trump sought to block.
More recently, Bezos has reset his relationship with Trump, praising the president after his assassination attempt, blocking a Washington Post endorsement of Kamala Harris, dining with the president at Mar-a-Lago, and attending the inauguration.
Bezos is no longer the CEO of Amazon but is still the chairman and largest shareholder.
What’s Next With Tariffs?
One scenario is that the U.S. and China reach a comprehensive trade deal that reduces tariffs on both sides, while providing Trump with assurances regarding trade deficits and other concerns.
But if that happens, it looks like it’s a long way away.
Bessent, the Treasury Secretary, admitted as much during a Fox News interview on Tuesday.
Asked if he plans to call his Chinese counterpart, Bessent answered that “we will see what happens with China, uh, that it’s important, I think it’s unsustainable from the Chinese side, so, uh, maybe they’ll call me one day.”
Per Reuters, Trump and President Xi of China have not spoken recently, even though Trump indicated the opposite in his recent Time magazine interview.
“As far as I know, the two heads of state have not called each other recently,” Guo Jiakun, a spokesman for China, told Reuters. “I would like to reiterate that China and the U.S. have not conducted consultations or negotiations on the tariffs issue.”
So, if you don’t like the new high prices on Temu, Shein, and Amazon products, get used to them, because a deal that would bring them back down doesn’t sound like it’s coming anytime soon.
About the Author:
Stephen Silver is an award-winning journalist, essayist and film critic, and contributor to the Philadelphia Inquirer, the Jewish Telegraphic Agency, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. For over a decade, Stephen has authored thousands of articles that focus on politics, technology, and the economy. Follow him on X (formerly Twitter) at @StephenSilver, and subscribe to his Substack newsletter.
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