Illustration: Sarah Grillo/Axios

The U.S.-China trade war looks set to continue and likely escalate, bringing more tariffs to imports of Chinese goods, with the latest round adding a 10% charge to consumer products like clothing, toys and electronics.

Between the lines: Large retailers like Walmart and Target have said they will have no choice but to pass the cost of tariffs on to customers, but it's very likely the cost of the tariffs and many other increased charges won't be fully disclosed on price tags.

What's happening: Research from Diego Aparicio and Roberto Rigobon of MIT finds that in recent years it has become almost impossible for companies to raise prices. Instead they resort to "shrinkflation" — reducing the size of products or their quality while charging the same price, per the Economist.

  • "A 5.5% jump in the cost of a pint after years of 5% increases does not send beer drinkers searching for other pubs in the way that a 0.5% hike after years of no change might," the magazine explains. "Thus falling inflation can make prices 'stickier.' To compensate, firms instead find other ways to impose costs on buyers."

Be smart: Consumers have seen this phenomenon recently from companies like Postmates and DoorDash, who have padded revenues by hiding the true price of their service in various hidden fees or even dressed up as "tips."

  • As GrubHub CEO Matt Maloney pointed out in a recent interview with Axios' Kia Kokalitcheva, when customers order via most delivery services, they find multiple charges like a "small plate fee" or "service fee" wrapped into the overall price that can add up to much more than the advertised delivery charge.

Flashback: The Obama White House issued a report on such fees in 2016, detailing the ways companies in the automotive, banking, concert and telecom sectors, to name just a few, hide their real prices from consumers.

  • These hidden fees have become entrenched revenue generators for businesses like hotels, which reap big profits from hidden "resort fees," and airlines that charge for services previously included in the airfare, like baggage or seat assignments.

The bottom line: A major outcome of President Trump's trade war with China may be that consumers get stuck with higher prices and lower quality goods that still don't move the needle on inflation because companies aren't marking up the price of the items themselves.

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Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9:45 p.m. ET: 19,282,972 — Total deaths: 718,851 — Total recoveries — 11,671,491Map.
  2. U.S.: Total confirmed cases as of 9:45 p.m. ET: 4,937,441 — Total deaths: 161,248 — Total recoveries: 1,623,870 — Total tests: 60,415,558Map.
  3. Politics: Trump says he's prepared to sign executive orders on coronavirus aid.
  4. Education: Cuomo says all New York schools can reopen for in-person learning.
  5. Public health: Surgeon general urges flu shots to prevent "double whammy" with coronavirus — Massachusetts pauses reopening after uptick in coronavirus cases.
  6. World: Africa records over 1 million coronavirus cases — Gates Foundation puts $150 million behind coronavirus vaccine production.

Warren and Clinton to speak on same night of Democratic convention

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Sen. Elizabeth Warren and Hillary Clinton both are slated to speak on the Wednesday of the Democratic convention — Aug. 19 — four sources familiar with the planning told Axios.

Why it matters: That's the same night Joe Biden's running mate (to be revealed next week) will address the nation. Clinton and Warren represent two of the most influential wise-women of Democratic politics with the potential to turn out millions of establishment and progressive voters in November.

Trump considering order on pre-existing condition protections, which already exist

Photo: Jim Watson/AFP via Getty Images

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Why it matters: The Affordable Care Act already requires insurers to cover pre-existing conditions. The Trump administration is currently arguing in a case before the Supreme Court to strike down that very law — including its pre-existing condition protections.