Trump lowered tariffs on China. Here’s why that won’t spare Americans from price hikes and shortages

The steep drop in tariff rates on Chinese goods shipped to the United States might have consumers thinking there’s significant relief in sight — at least compared to before. But in practice it might not feel that way. With timing of the essence given the new rates are only temporary, businesses are rushing to complete orders and get products made in China on ships and planes while tariffs are at a minimum of 30%, versus 145% — and they are paying a premium to do so.

That’s bound to eat into the savings that businesses would otherwise see from lower tariffs. For consumers, that means the price of many goods from China, America’s second-top source of imports, is poised to remain elevated. The revised rates came after US and Chinese government officials met in Geneva earlier this month, resulting in both nations lowering tariffs on one another’s goods for 90 days as talks continue.

But there’s no saying for certain whether the partial truce will last the full 90 days. Even if it does, it’s unclear what level the new tariffs will be.

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