Mark Cuban: China Tariffs ‘Higher’ Than You Think — How It Affects Your Wallet
Written by
J. Arky
Edited by
Zuri Anderson
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Mark Cuban has a warning about China’s tariffs: they are much higher than you think.
The Street reported that Cuban is ringing the alarm bells about the China tariffs being higher than initially believed, comparing them to the 8% tariffs Biden placed on the country during his term as President of the United States. Trump recently reduced the tariff to make the current rate 38% on Chinese goods, over four times higher than the last administration’s rate, which could still affect consumer’s wallets.
To find out how, GOBankingRates asked some financial experts to weigh in on exactly how on the money Cuban is about China’s higher tariffs and what Americans can expect because of them.
Average Americans Will Pay The Ultimate Price
The Trump Administration is under the assumption that China and other countries will bear the brunt of the additional costs for these tariffs when in actuality, American consumers will be the ones who end up paying more for products overseas.
Javier Palomarez, the founder and CEO at United States Hispanic Business Council, pointed out that the U.S. and China have been in an economic conflict for nearly a decade, but this is notably different from trade wars of the past.
“While these tariffs represent just the latest wave of attacks, it will surely exacerbate things,” Palomarez noted. “Especially when you consider that China owns 60% of the world’s raw rare earth metals, and supplies 90% of the refined rare earth metals.”
That means any products made with those most likely increase in price for Americans as a result of the high tariffs on China.
“Our countries are interconnected at an extreme level, and escalating the ongoing economic conflict will hit both nations hard,” Palomarez added. “It’s important that we remain competitive with China, but we must do so strategically.”
Higher Cost Of Goods Assembled Domestically
Amrita Bhasin, the co-founder and CEO of Sotira, agreed with Cuban. She emphasized that the higher tariffs on China will likely appear hidden in items advertised to American consumers as made in the U.S., but the materials and packaging are actually made abroad.Â
“For beverages, this is very common, and so consumers may be surprised as to why prices have gone up (amidst aluminum tariffs) for an item with American manufacturing facilities,” Bhasin explained, noting that there is a science behind how items are classified for imports to avoid tariffs.Â
“I predict that companies will look at substitute materials or a hybrid of materials so they can claim their imports as a different category that has lower tariffs,” concluded Bhasin.
More From GOBankingRates
