Americans continue to pay higher prices for shoes, luggage, and hats following Biden’s decision to maintain Trump’s tariffs.

The effects of tariffs imposed by former President Donald Trump on Chinese goods in 2018 are still being felt by Americans, with prices on items such as luggage and shoes seeing significant increases. As a result, small independent retailers like Tiffany Zarfas Williams, owner of the Luggage Shop of Lubbock in Texas, have had to pass on these price increases to consumers to stay afloat. Despite hopes that President Joe Biden would lift these tariffs, the administration decided to keep them in place and even raise rates on certain imports, causing continued anxiety among consumers over high prices and potentially impacting Biden’s reelection campaign.

The tariffs, which hit roughly $300 billion of goods imported from China, have been a significant factor in rising prices, along with other supply chain issues and external factors such as the Covid-19 pandemic and the Russian invasion of Ukraine. Industry trade groups point to the impact of these tariffs on sectors like footwear, apparel, and travel goods, with companies like Deer Stags and Cap America feeling the effects of increased costs. While some US companies have shifted production away from China to avoid tariffs, others like Deer Stags have found it more cost-effective to remain with their Chinese suppliers.

Economists agree that tariffs generally drive up prices, with estimates showing that Trump’s tariffs on Chinese goods could cost the average American household $1,000 a year. While it is challenging to determine the exact contribution of tariffs to overall inflation, the apparel and footwear industries attribute the increase in prices directly to these tariffs. Despite calls from major shoe brands to lift the tariffs and alleviate the burden on consumers, Biden decided to keep them in place as part of the administration’s strategy to strengthen US supply chains and protect American workers from China’s unfair trading practices.

While there is a consensus on the need to address China’s unfair trade policies, including intellectual property theft and forced technology transfers, opinions differ on the effectiveness of tariffs as a response. The textile industry supports increasing tariffs to protect domestic manufacturing, while apparel and footwear industry leaders believe that tariffs have not been effective in addressing the root issues with China. Despite efforts by both the Trump and Biden administrations to reach agreements with China on trade, promises made under the Phase One agreement have not been fully realized, leading to criticism of the current administration’s tariff policies.

In conclusion, the ongoing impact of tariffs on Chinese goods remains a contentious issue in US politics and the business community. While tariffs have been used as a tool to address China’s unfair trade practices, the effectiveness of this approach in lowering prices for consumers and protecting domestic industries is still up for debate. As the Biden administration continues to navigate its trade policy with China, the future of tariffs and their impact on the economy will remain a key area of contention for businesses, consumers, and policymakers alike.