It's not as if all imports from China are suddenly going to have tariffs imposed on them. Now that some will, however, it leads to the inevitable questions of how far this will go and what it will mean for U.S. consumers and retailers.
Last week's decision by the Commerce Department to place a tariff on uncoated paper imported from China could drive up the price to create catalogs, brochures, magazines and other items.
The National Retail Federation (NRF) voiced its objections over the decision to impose the tariff. Erik Autor, an international trade counsel with the group, told CNNMoney.com, "We complain about China not being transparent. I understand that the administration is under a lot of political pressure from Congress about the trade deficit with China, but this isn't appropriate."
Mr. Autor and others maintain U.S. consumers will be among those hurt if tariffs are placed on Chinese goods.
"Almost every toy sold in the United States is imported from China. Seventy percent of shoes imported are from China. We import 70 to 75 percent of clothing, and 20 percent of that is from China," he said. "With consumer electronics, housewares, furniture, China is either the principle supplier to American retailers or one of the top suppliers."
In an email to CNNMoney.com, Wal-Mart spokesperson Amy Wyatt wrote, "We urge a balanced approach to encouraging healthy two-way trade between the U.S. and China. We understand the importance of U.S. trade laws as well as the need to open the Chinese market to the export of more U.S. products. The use of countervailing duties is part of U.S. trade remedies with most of our trading partners and the application to China has been expected for some time."
Wal-Mart currently imports more than $20 billion in goods from Chinese suppliers. The company is not expecting any immediate impact for it or its customers because it sources goods from more than 70 countries, according to Ms. Wyatt.
Discussion Questions: What is your reaction to the Bush administration's reversal of past practice and its imposition of tariffs on Chinese goods? Where do you expect this to lead and what will it mean for retailers and consumers?