Travel light -- the escalating trade war between the United States and China could have a big impact on preparing for your summer travel plans. Both countries are standing firm on their tariffs, which will impact numerous industries from retail to manufacturing. According to the Travel Good Association, 84% of all travel goods sold in the United States are imported from China.
On May 10, President Donald Trump increased tariffs on U.S. imports of travel goods from China from 10%-25%, therefore all goods entered (imported into the U.S.) on or after Saturday June 1, will be taxed 25%. Travel goods include luggage, business briefcases/computer bags, personal leather goods, handbags and travel/sport bags.
Friction between the U.S. and China has also slowed down tourism. According to the National Travel and Tourism Office, travel from China to the U.S. fell to 2.9 million visitors, which is 5.7% lower than recent years.
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The most recent report from the National Retail Federation states tariffs on furniture and travel goods from China alone would cost Americans $6 billion a years. Last year the U.S. imported $539.5 billion in Chinese-made goods.
The two countries have been interlocked through trade for years, depending on one another. The president’s goal is to narrow the trade deficit, or "level the playing field" with tariffs.
"We may not feel the effects right away, but American consumers and workers will take a hit," said David Jacobson, Cox School of Business Global Strategist.
Jacobson, who once lived in China and frequently travels back and forth says, "the impact will look like price increases across the board for products that come from China. Its also going to mean that many vendors, many many manufacturers are working as fast as they can to shift manufacturing outside of China."