Bay Area businesses say prices will rise due to trade war with China

SAN FRANCISCO (KGO) -- The trade war with China has begun and it seems the biggest losers will be consumers.

David Wong is already warning his customers at Cosmic Computers in the Sunset. The Chinese wholesalers he buys from are jacking up their prices and he needs to make a profit, too.

"Now if I get it for 15 bucks, I have to sell it for 15 with the margin. The consumer will feel all that," Wong said.

Meantime, the cost for everything inside Camera Source in Chinatown will go up.

Luggage, magnets, keychains, t-shirts -- all of the souvenirs here are made in China.

Owner Shahram Raie said, "Everything, A-Z, if supplier is telling me cost is up by 20 percent then 20 percent is raised on everything."

This is all part of the new tariffs imposed on China.

The Trump administration is renewing the trade war with China after negotiations ended without a deal Friday.

The president said, "And look, President XI is a great guy, friend of mine. But he is for China. We are the piggybacked piggy bank that everybody wants to rob."

Prof. Alex Field teaches economy at Santa Clara University and said, "It's going to cost more for goods imported from Asia, particularly electronic goods. It's not going to be good for American consumers."

The administration added 25 percent tariffs on 6,000 goods from China.

This is expected to push prices up on a wide variety of items.
Copyright © 2021 KGO-TV. All Rights Reserved.