US CONSUMERS
Some economists have warned that, ultimately, US consumers are likely to bear the brunt of the trade war, facing higher prices on everything from sneakers to wine.
Danish luxury stereo maker Bang & Olufsen said on Wednesday it would raise prices on selected products next month to account for the tariffs and other factors.
Nearly three-quarters of Americans expect the prices of everyday items to rise in the next six months, a new Reuters/Ipsos poll found.
The full effects of Wednesday’s tariffs may not be felt for some time, as any goods already in transit as of midnight will be exempt from the new levies as long as they arrive in the US by May 27.
Trump’s earlier across-the-board 10 per cent tariffs on all imports from many countries began on Saturday.
The latest round of duties, which took effect at 12.01am Eastern Time (12.01pm, Singapore time), is aimed at countries that are “ripping off” the US, according to Trump.
That list includes many of the United States’ closest allies, including the European Union, which was hit with a 20 per cent tariff as well as industry-specific duties. The 27-member bloc will vote on initial counter-measures later on Wednesday.
Trump has said the tariffs are a response to barriers put on U.S. goods and are needed to fix America’s trade imbalances. He has also accused countries, including Japan, of devaluing their currencies to gain a trade advantage, something Tokyo denies.
Japan’s finance minister said trade negotiations with Washington could include foreign exchange rates.
Trump has signaled he may not be finished on tariffs.
In remarks to Republican lawmakers on Tuesday evening, he said he would soon announce “major” tariffs on pharmaceutical imports, one of a handful of categories of goods that have so far been exempted.
