Key points
- Over 99 per cent of America’s coffee is imported
- Clothing like shirts and sweaters could also become pricier
- If an existing truce is not extended, tariffs on Chinese products could surge
ISLAMABAD: The United States is set to raise tariffs on dozens of trading partners Friday if they fail to reach accords with President Donald Trump to avert the higher rates, and this risks raising prices for consumers.
Economists have warned that steeper US tariffs, paid for by importers of foreign products, could add to business costs and trickle down to households.
The risk is a dampening of consumption — a key driver of the world’s biggest economy.
Trump’s tariffs could impact everything from coffee beans and rice to cocoa, seafood or even electronics.
Operations may squeeze
According to Reuters, throughout the spring, big retailers and consumer product makers warned that levies on imported goods would squeeze their operations, forcing them to choose between lower earnings and passing on higher costs to customers.
Here are some examples of products in the crosshairs:
Over 99 per cent of America’s coffee is imported, according to the National Coffee Association.
It told AFP that two-thirds of US adults drink coffee daily.
Top suppliers of coffee beans include Brazil, Colombia and Vietnam, according to the United States Department of Agriculture (USDA).
But Brazil, which accounted for over 30 per cent of such imports in recent years, faces a 50 per cent tariff threat come August 1.
In a letter to Brazil’s leadership, Trump cited a judical “witch hunt” against his right-wing ally, ex-president Jair Bolsonaro, in unveiling the rate.
Clothing
Imports from Vietnam, meanwhile, face a 20 per cent additional tariff even after a deal the Southeast Asian country recently struck with Trump.
Clothing like shirts and sweaters could also become pricier.
China, Vietnam and Bangladesh accounted for more than half of US apparel imports from January through May this year, said the American Apparel & Footwear Association.
All three countries face different tariff levels under the Trump administration.
Chinese goods, which account for nearly a third of apparel imports, were hit by a fresh 30 per cent duty this year — piling atop existing ones.
If an existing truce expiring August 12 is not extended, tariffs on products from China could surge even higher, causing companies to halt imports or be forced to pass on more costs.
Vietnamese goods accounted for nearly 20 per cent of clothing imports while those from Bangladesh made up about 11 per cent, the association said.
35pc duty on Bangladesh
Trump has threatened to impose a 35 per cent duty on Bangladesh goods.
The United States is the biggest rice importing country in the Western Hemisphere, bringing in some 1.3 million tons, according to the USDA.
More than 60 per cent of the country’s rice imports are aromatic varieties, mostly jasmine from Thailand and basmati from India and Pakistan.
Thailand faces a prospective 36 per cent tariff come Friday, India 26 per cent and Pakistan, 29 per cent.
The United States also takes in smaller quantities of medium and short-grained rice from Asia and some products from South America.
Cocoa beans
US imports of cocoa beans — mostly from places like the Ivory Coast and Ecuador — averaged over $1.1 billion annually from 2017 to 2021, according to the USDA.
Among them, the Ivory Coast faces a 21 per cent tariff.
Cocoa butter shipments were valued at $576 million annually and mainly supplied by Indonesia and Malaysia, facing fresh duties of 19 per cent and 25 per cent respectively.
Besides tariffs on imports from specific countries, Trump has also threatened a 50 per cent duty on copper imports come August 1.
Consulting firm BCG warned that this would add $8.6 billion to the cost of raw copper and refined copper imported into the country — and more if tariffs extended into derivative products.
BCG expects material costs to jump for the construction industry — which uses 42 per cent of copper products consumed domestically — and makers of electronics goods.
