U.S. President Donald Trump and Chinese President Xi Jinping are set to meet at the G-20 summit in Japan next month. The leaders of the world’s two largest economies will likely aim to resolve their long-contentious trade dispute, but if they fail to reach an agreement, there’s a good chance Trump will follow through on his threat to place additional 25 percent tariffs on $300 billion worth of Chinese goods. According to a recent Citi report, additional tariffs on virtually all Chinese imports would be far worse than what consumers have seen so far, because the first round of tariffs focused mainly on capital goods, not goods consumers purchase directly. 

Trump's proposed tariffs list was released last month by the Office of the United States Trade Representative. The list of $300 billion worth of Chinese goods that will be included in the next round of tariffs will represent 67% of total imports of consumer goods from China, 66% of automotive vehicles, 19% of industrial supplies, and 38% of capital goods, according to the Citi report.

Citi found that higher prices on consumer goods could lead other companies to also raise prices on goods that are not facing tariffs to alleviate pressure on their margins.

To learn more about how Trump's proposed tariffs could affect consumers and businesses, visit the Citi report or Yahoo Finance's summary of the report.