3 Major industries affected by the Trump tariffs on Chinese goods

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The US-China trade war continues to affect everyone around the world.  With over $539 billion worth of goods reported to be imported from China to the US in 2018, the tariffs will lead to huge negative consequences worldwide. Here are the major industries that are currently affected by the Trump tariffs.



Construction, manufacturing, and other industrial sectors may be the ones suffering the most. Up to 99% of the $50 billion worth of Chinese imports included in the initial lists consist of non-consumer goods such as machinery, semiconductors, and other hard components which target the major supply chain elements. Many raw materials and chemicals needed for producing other consumer goods were also targeted.


Trump has used this opportunity to push major manufacturers to move their production plants outside China. Although some companies have partially moved their factories outside China in countries such as Vietnam and the UK, it is not an option for many others.


Electronics and Technology

Image: MarketWatch


Electronics is one of the top industries affected by the trade war. Increased tariffs on hardware components used for many telecommunications and networking equipment such as modems and routers affects the manufacturing cost.


List 4 also contains many electronic consumer goods such as smartwatches and laptops that were previously excluded. If Trump decides to go forth with the newest list of tariffs, the industry will suffer even further. In 2018 about 35% of Chinese imports were computers and electronics and 18% was in electrical equipment and manufacturing. This totals up to at least $280 billions of worth.



With many consumer goods affected by the 25% tariffs, it will drive up import costs that retailers will find hard to reduce. Shelf prices are likely to rise on a number of common products. Although large retailers may handle the tariffs by different sourcing and suppliers, it would be difficult for small retailers to absorb the risen cost.


Many categories of goods are already hit, and with more consumer products on the latest tariff list, its implementation could worsen the situation even further. List 4 encompasses all the products not yet affected, such as more apparel, clothing, and footwear. 69% of all footwear and 42% of all apparel sold in the U.S. is imported from China, according to the American Apparel and Footwear Association. 

See also: What are the Tariffs Imposed by the USA on China?