Surge in Prices of Chinese-Made Goods Highlights Tariff Impact on U.S. Consumers

date
02/07/2025
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GMT Eight
The median price of 1,407 Chinese-made products on Amazon U.S. rose 2.6% since January, significantly above the core CPI growth rate, with some items like GreenPan nonstick pans surging nearly 100%.

Tariffs are increasingly shifting their weight onto American consumers. A study released by data analytics firm DataWeave and reported by Reuters on June 30 revealed that the median price of 1,407 Chinese-made products on Amazon U.S. rose by 2.6% since January, significantly higher than the rise indicated by the core CPI for similar consumer categories.

Experts widely attribute the recent price increases to the latest round of tariffs initiated by President Trump. The effects of these measures are now moving from the supply chain into everyday household expenses. Data collected between May 15 and June 15, 2025, showed that the affected products spanned categories such as kitchenware, office supplies, and electronics accessories. The price of a Chinese-made GreenPan nonstick pan rose nearly 100%, while a Hamilton Beach electric kettle saw a price increase of more than 45%. These items are largely sold by third-party sellers, who account for 62% of Amazon’s offerings.

Although President Trump has repeatedly claimed that “China is paying the tariffs,” economists have pointed out that the real burden ultimately falls on U.S. consumers. Mary Lovely, a senior fellow at the Peterson Institute for International Economics, stated that research consistently shows companies will pass increased costs from tariffs onto consumers. A study by the Federal Reserve Bank of Atlanta also indicated that tariffs on imports from China, Mexico, and Canada would impact consumer prices in food, beverages, and other categories. If half the tariff costs are passed on, consumer prices could rise by 0.8%; if fully passed on, prices could increase by 1.6%.

According to a June 26 report by the Economic Policy Institute, price hikes caused by tariffs in the first half of 2025 are expected to cost American households an additional $320 to $480 annually. The burden is heavier for households earning under $50,000. Daniel Costa, a senior fellow at the Institute, noted that these households tend to cut back on other spending in response to price increases, which could weaken overall consumer confidence.

Some sellers are attempting to restructure their supply chains to avoid the impact of tariffs. A number of Amazon vendors have shifted production from China to Vietnam, Malaysia, and Mexico, with some even relabeling product origins to bypass tariffs. However, analysts warn that these adjustments cannot fully replace the capacity of Chinese manufacturing in the short term. Sea-Intelligence reported that in Q4 2023, Vietnam's major ports experienced nearly 14% growth in container throughput, signaling its emerging role in global supply chains. Still, Sherrin Ross Ingram, CEO of the International Trade Transparency Center, cautioned that relocating supply chains to Vietnam may face challenges such as infrastructure limitations, regulatory uncertainty, and labor constraints.

Tariff-related inflation is becoming a politically charged issue. Democrats argue that Trump’s policies are a hidden tax on the American public, while Republicans defend tariffs as necessary tools to pressure China’s industrial strategy. Regardless of political affiliation, many U.S. households are feeling the effects. Melissa Thompson, a suburban Chicago resident, told NBC that the price of her son’s crayons and pencils rose by 30% compared to the previous year. Her monthly online spending has climbed from $400 to nearly $500. She remarked that inflation, while abstract, is deeply felt in daily life, especially when “a bunch of small items suddenly cost a lot more.”

Thompson added that while her family supports national interests, they hope the cost is not reflected in kitchen appliance prices. Her comments underscore how price increases are beginning to show up in American household budgets.

Data from the U.S. Department of Labor showed the CPI rose by 3.3% year-on-year in May, with tradable goods increasing by more than 4.1%. Although energy prices have declined, imported consumer goods are becoming a new source of inflationary pressure. The Fed’s preferred inflation measure—core PCE—rose by 2.3% in May, while the core PCE index increased by 2.68%. Economists expect inflation to climb further as companies continue to pass on higher import costs.

Federal Reserve Chair Jerome Powell acknowledged during the June policy meeting that structural upside risks remain in the inflation outlook and specifically cited imported inflation resulting from trade tensions. He further stated in a recent hearing that inflation may rise in June, July, and August as tariffs gradually impact consumer prices.

The Federal Reserve Bank of Atlanta warned that, without swift monetary policy responses, elevated import prices could persist. Chicago Fed President Austan Goolsbee also commented that if tariffs continue, both inflation and economic growth could worsen simultaneously.