I am going to be honest with you, dear reader: after writing what feels like 5,000 articles over the past 5 days, I don’t have any more fancy ways to impart the information that Donald Trump’s tariffs are going to cause a storm of excrement to rain down across the United States of America as the President works on his plan to make enemies of just about every country on the planet. That’s the news, there you go.
The tariffs, Trump’s favourite word since he was elected for the second time, are set to hit American businesses like a runaway train as goods become more expensive overnight to both import and export.
Prices are set to rise of almost quite literally everything in the country, as the United States does not have the capacity to be completely self-sustainable. One particularly impacted area of commerce for citizens of the United States is set to be toys, as nearly none of them are made in-house with American materials.
You don’t have to be the second coming of James Bond to have spotted with your keen eye that plenty of plastic toys for our kids come from China, but as of April 9, the US will impose a 54% tariff on nearly everything coming from the Asian nation, making them immediately more expensive.
Tariffs set to make Shein, Temu, and Aliexpress goods more expensive
And rates go even higher, say CNN, to 79%, if Trump follows through with his promise to slap an additional 25% tariff on any nation that buys oil from Venezuela, which China has done.
As well as that, starting in May, the huge 54% tariff rate will also be applied to packages worth less than $800 coming to the US from China and Hong Kong. That includes companies such as Shein, Temu and AliExpress.
China and Vietnam ship a total of $15 billion worth of toys to the USA, with The Toy Association estimating that 77% of all toys sold in the US are manufactured in China.
Greg Ahearn, president and CEO of The Toy Association, added that toy companies, as things stand ahead of the tariffs, already have a stark lack of room to absorb much of the higher costs from tariffs since the profit margins on toys tend to be slim on a good day. Ahearn’s best guess was that toys made in China that are sold in the US will cost buyers at least 30% more than they currently do.
Sending children back to school in new sneakers, jeans and T-shirts is likely to cost U.S. families significantly more this fall if the bespoke tariffs President Donald Trump put on leading exporters take effect as planned, American industry groups warn.
About 97% of the clothes and shoes purchased in the U.S. are imported, predominantly from Asia, the American Apparel & Footwear Association said, citing its most recent data. Walmart, Gap Inc., Lululemon and Nike are a few of the companies that have a majority of their clothing made in Asian countries.
Those same garment-making hubs took a big hit under the president’s plan to punish individual countries for trade imbalances. For all Chinese goods, that meant tariffs of at least 54%. He set the import tax rates for Vietnam and neighboring Cambodia at 46% and 49%, and products from Bangladesh and Indonesia at 37% and 32%.
Working with foreign factories has kept labor costs down for U.S. companies in the fashion trade, but neither they nor their overseas suppliers are likely to absorb new costs that high. India, Indonesia, Pakistan, and Sri Lanka also got slapped with high tariffs so they aren’t immediate sourcing alternatives.
“If these tariffs are allowed to persist, ultimately it’s going to make its way to the consumer,” said Steve Lamar, president and CEO of the American Apparel & Footwear Association.
Another trade group, Footwear Distributors and Retailers of America, provided estimates of the price increases that could be in store for shoes, noting 99% of the pairs sold in the U.S. are imports. Work boots made in China that now retail for $77 would go up to $115, while customers would pay $220 for running shoes made in Vietnam currently priced at $155, the group said.
FDRA President Matt Priest predicted lower-income families and the places they shop would feel the impact most. He said a pair of Chinese-made children’s shoes that cost $26 today will likely carry a $41 price tag by the back-to-school shopping season, according to his group’s calculations.
Preparing for a moving target
The tariffs on the top producers of not only finished fashion but many of the materials used to make footwear and apparel shocked U.S. retailers and brands. Before Trump’s first term, U.S. companies had started to diversify away from China in response to trade tensions as well as human rights and environmental concerns.
They accelerated the pace when he ordered tariffs on Chinese goods in 2018, shifting more production to other countries in Asia. Lululemon said in its latest annual filing that 40% of its sportswear last year was manufactured in Vietnam, 17% in Cambodia, 11% in Sri Lanka, 11% in Indonesia and 7% in Bangladesh.
Nike, Levi-Strauss, Ralph Lauren, Gap Inc., Abercrombie & Fitch, and VF Corporation, which owns Vans, The North Face, and Timberland, also reported a greatly reduced reliance on garment-makers and suppliers in China.
Shoe brand Steve Madden said in November it would reduce imports from China by as much as 45% this year due to Trump’s campaign pledge to impose a 60% tariff on all Chinese products. The brand said it already had spent several years developing a factory network in Cambodia, Vietnam, Mexico and Brazil.
Industry experts say reviving the American garment industry would be hugely expensive and take years if it were feasible. The number of people working in apparel manufacturing in January 2015 stood at 139,000 and had dwindled to 85,000 by January of this year, according to the Bureau of Labor Statistics. Sri Lanka employs four times as many despite having a population less than one-seventh the size of the U.S.
Along with lacking a skilled and willing workforce, the U.S. does not have domestic sources for the more than 70 materials that go into making a typical shoe, the Footwear Distributors & Retailers of America said in written comments to Trump’s trade representative.
Shoe companies would need to find or set up factories to make cotton laces, eyelets, textile uppers and other components to make finished footwear in the U.S. on a large scale, the group wrote.
“These materials simply do not exist here, and many of these materials have never existed in the U.S,” the organization said.
Price increases may come as a shock
The expected barrage of apparel price increases would follow three decades of stability. Clothes cost U.S. consumers essentially the same in 2024 as they did in 1994, according to U.S. Bureau of Labor Statistics data.
Economists and industry analysts have attributed the trend to free trade agreements, offshoring to foreign countries where workers are paid much less, and heated competition for shoppers among discount retailers and fast-fashion brands like H&M, Zar,a and Forever 21.
But customers unaccustomed to inflation in the apparel sector and coming off several years of steep rise in the costs of groceries and housing may be extra sensitive to any big jumps in clothing prices. Priest, of the Footwear Distributors and Retailers of America, said he has observed shoppers pulling back on buying shoes since Trump’s return to the White House.
“They’re nervous,” he said. “They’ve obviously been playing the long game as it relates to inflation for a number of years now. And they just don’t have the endurance to absorb higher prices, particularly as they’re inflicted by the U.S. government.”
Winners and losers in a garment trade war
According to a report by British bank Barclays published Friday, the winners in the tariff wars are retailers that have at least one of these attributes: big negotiating power with their suppliers, a strong brand name, and limited sourcing in Asia.
In clothing and footwear, that includes off-price retailers Burlington, Ross Stores Inc. and TJX Companies, which operates T.J. Maxx and Marshalls, as well as Ralph Lauren and Dick’s Sporting Goods, according to the report.
The companies in for a tougher time are those with limited negotiating power, limited pricing power and high product exposure in Asia, a list including Gap Inc., Urban Outfitters and American Eagle Outfitters, according to the report.
Secondhand clothing resale site ThredUp cheered a related action Trump took with his latest round of tariffs: eliminating a widely used tax exemption that has allowed millions of low-cost goods, most of them originating in China, to enter the U.S. every day duty-free.
“This policy change will increase the cost of cheaply produced, disposable clothing imported from China, directly impacting the business model that fuels overproduction and environmental degradation,” ThredUp said.
Several industry analysts and economists said they think tariffs will end up being a consumer sales tax that widens the yawning gap between America’s wealthiest residents and those in the middle and lower end of the income spectrum.
“So where will the U.S. be buying its apparel now that the tariff rates on Bangladesh, Vietnam, and China are astronomical?” Mary E. Lovely, a senior fellow at the Peterson Institute for International Economics, said of the schedule set to take effect Wednesday. “Will the new ‘Golden Age’ involve knitting our own knickers as well as snapping together our cellphones?”
President Donald Trump finally announced his sweeping “reciprocal” tariffs on countries around the world Wednesday. The much-higher-than-expected ‘Liberation Day’ levies sent Wall Street traders into panic mode triggering a massive selloffs in US markets on Thursday and Friday.
In response to Trump’s tariffs, major US trading partners have vowed to retaliate with their own levies on US products. In an attempt to protect his state and spare the fifth-largest economy in the world, California Governor Gavin Newsom has directed officials in the state to “pursue new strategic trade relationships with international partners,” according to an announcement on Friday.
As first reported by Fox News, Newsom posted a video message intended for world leaders and current trading partners to exempt products from California from any retaliatory tariffs. He assured them that the Golden State “remains a stable partner.”
“Donald Trump’s tariffs do not represent all Americans,” he said in a video posted on X “And on behalf of 40 million Americans that live in the great state of California, the tentpole of the US economy… Our state of mind is around supporting stable trading relationships around the globe.”
“To our international partners: As the fifth largest economy in the world, the Golden State will remain a steady, reliable partner for generations to come, no matter the turbulence coming out of Washington,” Newsom stated in a press release, insisting “California is not Washington, D.C.”
Can California negotiate trade deals with foreign countries?
There is nothing that California can do to get around the tariffs imposed by Trump as the state is not a sovereign nation. Nor can countries specifically target or exempt goods made in California from retaliatory levies.
However, nations could avoid imposing tariffs on specific sets of goods that are commonly produced in the state. This has already been a tactic used with previously announced retaliatory tariffs from the European Union imposed on goods mainly produced in Red States.
California is concerned about almond exports
One good thing that is of particular concern for the Newsom administration is almonds. The state produces 80% of the world’s supply, the majority of which is exported. Almonds account for 20% of California’s $23.6 billion in agricultural sales abroad, making them the most valuable food export for the state. Fox News reports that dairy products, pistachios, wine, and walnuts are California’s other top exports according to the state’s Department of Food and Agriculture.
California has more than $675 billion in two-way trade and a gross domestic product of $3.9 billion making it the fifth-largest economy in the world and a key driver of US economic growth. It is home to the most fortune 500 companies and is number one in the US for agriculture, business starts, high-tech, manufacturing and venture capital the state said in its press release.
More than 40% of goods California imports come from Mexico, Canada, and China. Imports from those three nations accounted for $203 billion of the over $491 billion the state imported in 2024 according to the governor’s press release. Newsom’s administration is also concerned that the tariffs will hamper the rebuilding efforts in Los Angeles after the devastating fire storms that sweep the city.
U.S. President Donald Trump’s big raise in tariffs has triggered an escalating trade war and sent global markets plummeting.
The S&P 500 fell 6% Friday, the Dow Jones Industrial Average plunged 5.5%, and the Nasdaq composite dropped 5.8%.
China announced Friday that it will impose a 34% tax on all U.S. imports next week, part of a flurry of retaliatory measures to Trump’s new tariffs.
Trump has doubled down on his commitment to tariffs, maintaining that his new levies will bring trillions of dollars of investment to the U.S. while also criticizing other countries’ retaliatory measures.
Here’s the latest:
Elon Musk says he hopes for zero tariffs with Europe someday
Billionaire Elon Musk told Italy League leader Matteo Salvini on Saturday that he hoped in the future the U.S. and Europe could create “a very close, stronger partnership” and reach a “zero-tariff zone.”
Musk spoke to Salvini in a video conference during the League’s congress in Florence. Salvini is the leader of the far-right, anti-migrant League party and vice premier of the Italian conservative government led by Premier Giorgia Meloni.
He said that, ideally, there will be a “zero-tariff zone in the future with a free trade zone between Europe and North America.”
Musk, an adviser to President Donald Trump who owns Tesla, SpaceX, and the social media platform X, has played a key role in government downsizing as the head of the newly created Department of Government Efficiency.
British and French leaders discuss fallout from Trump’s tariffs
Prime Minister Keir Starmer and French President Emmanuel Macron agreed Saturday that a trade war was in no one’s interest as they discussed the fallout from the sweeping tariffs announced earlier this week by President Donald Trump.
Starmer and Macron discussed the global economic and security impact of the tariffs, particularly in Southeast Asia, Starmer’s office said in a statement released after a phone call between the two leaders.
“They agreed that a trade war was in nobody’s interests, but nothing should be off the table and that it was important to keep business updated on developments,” the statement said.
The leaders also discussed efforts to build a coalition of countries willing to support Ukraine in its war against Russia and provide peacekeeping forces in the event a ceasefire is reached.
“Following discussions between military planners in Ukraine this week, they discussed the good progress that has been made on the Coalition of the Willing,” the statement said.
Some of Trump’s new tariffs have taken effect
The baseline 10% levy announced by Trump this week kicked in at 12:01 a.m. Saturday ET (0401 GMT), triggering customs agents’ collections at ports of entry across the U.S.
Countries targeted by Trump for higher tariffs are due to go into effect on Wednesday. Those include assessments as high as 50% for Lesotho, 49% for Cambodia, and 47% for Madagascar.
In an all-caps social media post Saturday, Trump insisted: “THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN.”
Public reaction hasn’t been so confident, with stock markets slumping since the tariff announcement.
China spokesman takes a jab at Trump administration
China’s Foreign Ministry spokesperson Guo Jiakun posted on his Facebook page a screen saving showing the Dow Jones, S&P 500, and Nasdaq all declining by more than 5% on Friday, with the commentary, “The market has spoken.”
“The trade and tariff war started by the U.S. against the world is unprovoked and unjustified,” Guo wrote. “Now is the time for the U.S. to stop doing the wrong things and resolve the differences with trading partners through equal-footed consultation.”
China lashes out at US over tariffs, calling it a weapon to seek private interests
China on Saturday night heaped more criticism on the U.S. tariffs, saying they had “seriously infringed upon the legitimate rights and interests of all countries, seriously violated the rules of the World Trade Organization, seriously damaged the rules-based multilateral trading system, and severely impacted the stability of the global economic order.”
The U.S. “uses tariffs as a weapon to exert extreme pressure and seek private interests. This is a typical act of unilateralism, protectionism and economic bullying,” said the statement, attributed to the Chinese government and carried by the official Xinhua News Agency.
“The Chinese people believe in treating others with sincerity and taking trust as the basis. We do not provoke trouble, but we are not afraid of trouble. Pressure and threats are not the right way to deal with China. China has and will continue to take firm measures to safeguard its sovereignty, security, and development interests,” the statement said.
It said China would continue to promote “high-level opening-up” rather than closing its economy with even higher tariffs.
“Economic globalization is the inevitable path for the development of human society,” it said.“ “The world needs justice, not tyranny!”
Jaguar and Land Rover pause shipments to the US
The British maker of Jaguar and Land Rover cars is pausing shipments to the U.S. as it works to mitigate the impact of a 25% tax on vehicle imports imposed by the Trump administration.
Jaguar Land Rover Automotive, one of Britain’s biggest carmakers, said Saturday that the pause would take place this month.
“The USA is an important market for JLR’s luxury brands,” the company said in a statement. “As we work to address the new trading terms with our business partners, we are taking some short-term actions, including a shipment pause in April, as we develop our mid-to-long-term plans.”
The U.K. automotive industry is expected to be hard hit by the new tariffs, which come at a time when British carmakers are struggling with declining demand at home and the need to retool their plants for the transition to electric vehicles.
Trump says China has been hit harder by tariffs
President Donald Trump on Saturday morning posted on his Truth Social media site that China has been negatively impacted by tariffs “much harder than the USA, not even close.”
Newly announced U.S. tariffs on nations around the world, including 34% tariffs on China, have sent stock markets reeling for days. China has vowed to match the rate that Trump imposed.
On Saturday Trump was at his golf course in Jupiter, Florida. It’s his first time visiting the club since his second term started. Spotted in his motorcade, in his signature red MAGA hat and white polo shirt, Trump was reading a tabloid article about China’s response to U.S. tariffs.
“They, and many other nations, have treated us unsustainably badly,” Trump said on Truth Social. “We have been the dumb and helpless 'whipping post,” but not any longer.”
Italy’s economy minister cautions against retaliatory tariffs
Italian Economy Minister Giancarlo Giorgetti warned that imposing retaliatory tariffs on the United States would be damaging for both Italy and Europe.
Speaking at a business forum in Cernobbio, near Milan, Giorgetti said Saturday that Italy is working for a “de-escalation” with the U.S. following Trump’s announcement of a general tariff of 20% on European Union countries.
“We should avoid launching a policy of counter-tariffs that could be damaging for everyone and especially for us,” Giorgetti said. “Our message is that we need to avoid pushing the panic button. … We are following a pragmatic and rational approach.”
Giorgetti proposed that the EU allow member states to raise spending by relaxing the bloc’s fiscal rules.
Italy has a very limited budget leeway, as the government forecast its giant debt rising through 2026 to almost 138% of GDP.
“The Italian public debt means reduced budget room for our country, a constraint that must be taken into account in any decisions we make,” Giorgetti said, also referring to EU plans to increase defense spending.
Taiwan will provide support for industries hit by tariffs
Taiwan says it will provide a $2.65 billion fund to aid industries most affected by U.S. tariffs.
Taiwan has a trade surplus with the U.S., but much of it comes from Taiwanese industries trying to fulfill the U.S. demand for Taiwan’s information technology products. Officials say Taiwan plans to negotiate with the U.S. on how the new tariff rate of 32% was determined and try to get a better deal.
Premier Cho Jung-tai has been charged with working closely with industries that are impacted and to communicate the public about their plans to stabilize the economy. Cho said Friday that electronics and information technology, steel and metal, machinery, auto parts, construction materials and home appliances will feel “significant impacts.”
In the agricultural field, moth orchids, edamame, and such fish as tilapia, common dolphinfish, and bass will be hit the hardest, he said.