Tech, toys, fast fashion to cost more due to Chinese tariffs

MILWAUKEE (CBS 58) — Your packages from popular shopping sites like Temu or SHEIN might be delayed as the potential trade war between the U.S. and its biggest trading partners continues.

In the last 24 hours, the United States Postal Service (USPS) temporarily paused and then resumed shipments from China and Hong Kong.

CBS 58 reached out to USPS on Wednesday, Feb. 5, and they said in a statement quote:

"The postal service will continue accepting all international inbound mail and packages from China and Hong Kong posts. The USPS and Customs and Border protection are working closely together to implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery."

We will just have to wait and see whether that pause goes back into effect.

CBS 58 also spoke with an economist who says that now that the Chinese tariffs are in place, it might take a while before we feel the effects.

"This is more like a trade tiff between the U.S and China, and who knows how long it will last," said Brian Jacobsen, chief economist at Annex Wealth Management.

Brian Jacobsen is the chief economist at Annex Wealth Management. He says China is prepared to impose 15% tariffs on coal.

"China is one of the biggest importers of coal from the U.S.," said Jacobsen.

He says if China decides to import less due to the tariffs, it will likely drive down the price of coal for Americans.

"But we could see some job losses; they could shut down some production for a while," Jacobsen explained.

Experts say items like sneakers, smartphones, and even board games could be more expensive.

"Now, all of a sudden, those will have a 10% tariff applied. For example, 80% of toys that we buy in the United States are from China," said Jacobsen.

Matthew Poulson is the owner of Ruckus and Glee -- a toy store -- located in Wauwatosa.

"Because we are a small business, it probably could have a pretty profound effect on us," said Poulson.

Poulson says he has been in contact with his manufacturers and hasn't seen any price increase just yet.

"I'm not in a position where I can buy a bunch of inventory prior to get the prices they were a month ago," said Poulson.

Poulson says he tries to get toys domestically or from countries other than China.

"I want to make sure I have products from all over the world; well, it's just simply not that way. About 80% of the products we have in our store are either made in China, or parts of those toys are made in China," Poulson explained.

Jacobsen says these tariffs could also give U.S. products the ability to increase their profit margins.

"Domestic manufacturers and sellers will perceive this as they now have some pricing power," said Jacobsen.

Earlier this week, President Donald Trump paused tariffs on Mexico and Canada for 30 days; however, U.S. tariffs against China remain in effect, and China quickly responded by announcing its own import tax on U.S. goods.

Those are set to go into effect on Feb. 10.