Illustration: Liu Rui/GT

In an indication that tariffs are starting to hit American consumers, Reuters reported on Monday that prices for goods made in China and sold on Amazon.com have been rising faster than overall inflation. This insight comes from a study by the analytics firm DataWeave, which examined the prices of 1,400 different products. For those questioning whether tariffs could influence inflation, this study offers yet another piece of evidence.

Indeed, some economists have consistently cautioned that heightened tariffs could compel businesses to transfer the extra costs to consumers, thereby leading to increased prices of consumer goods. Despite attempts by supply chain entities to lessen these adverse effects - such as preemptively stockpiling merchandise - the imposition of additional tariffs by the US seems to has led to observable price increases in some consumer goods, as evidenced by DataWeave's study.

In an interview with CNBC, Amazon CEO Andy Jassy said the tech giant hasn't seen significant price increases, and he explained the mitigation strategies his company and its sellers are using. However, DataWeave's study may still reinforce existing concerns within the US consumer market that tariffs will drive up the prices of imported goods. Such worries could potentially affect American consumer confidence, which has fluctuated over the past few months. Tariffs and their potential effects on personal finances are considered significant factors contributing to these variations.

Consumer spending is the cornerstone of the US economy. According to a report by the Xinhua News Agency, personal consumption expenditures constitute nearly 70 percent of the country's GDP. This dependency suggests that any hesitation in consumer spending, stemming from wavering consumer confidence, could potentially have a negative impact on the US economy.

Trade protectionism is both ineffective and detrimental, potentially harming the US in the end. From the perspective of American consumers, it is essential to cease the imposition of additional tariffs, stop the weaponization of tariffs and return them to reasonable levels.

DataWeave's study further highlights the mutual benefits of China-US trade. For years, American consumers have reaped numerous benefits from this relationship, enjoying access to a wide array of affordable, high-quality Chinese imports. From sophisticated electronics to practical household items, from trendy apparel to daily necessities, these products meet the diverse needs of American consumers, enriching their choices and contributing to the prosperity of the US consumer market and economy. Moreover, this trade supports related jobs in the US, particularly in the sales and services sectors. 

DataWeave's study, focusing on goods made in China and sold on Amazon.com, reflects only a tiny fraction of the vast trade network between the two countries. Over recent decades, a complex and mutually beneficial trade relationship has developed between China and the US. China's role as the world's manufacturing hub has allowed US firms to source cheaper components and raw materials, which have translated into lower costs for consumers. This has been particularly true in industries such as consumer electronics, automobiles and textiles, where Chinese-made parts and finished goods are elements of the global supply chain.

Clothes cost US consumers essentially the same in 2024 as they did in 1994, according to the US Bureau of Labor Statistics, the Associated Press reported. Since China has been a major supplier of apparel to the US market, this long-term price stability is largely attributed to access to lower-cost Chinese manufacturing.

In addition, Chinese-made components in smartphones, computers and cars have driven down prices for these products in the US, offering more affordable options for American consumers across various income brackets. According to estimates from the Consumer Technology Association, the prices of products like flat-screen TVs, laptops and smartphones will see substantial hikes under the impact of US additional tariffs.

Economic and trade cooperation between China and the US is a natural choice for mutual benefit. The China-US trade relationship is deeply intertwined. Both countries have large economies and vast markets, and there is a continuous and stable market demand for each other's products and services.

In 2024, bilateral trade between China and the US was nearly $690 billion. This substantial scale reflects the strong demand in both markets for each other's products.

Despite being affected by US tariffs, China-US trade continues to generate undeniable economic benefits. Disrupting this naturally evolved, mutually beneficial relationship would harm nearly all stakeholders, including American consumers and the consumption-driven US economy. Many would prefer to avoid such an outcome.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn