As the trade war between the United States and China continues to ramp up, it gets closer to affecting consumers. If it continues, the trade war could have a very negative impact on disposable income – which is horrible news if you’re already living paycheck to paycheck.
American consumers can expect higher prices and diminished economic opportunity if President Donald Trump follows through on his threat of levying 10 percent tariffs on an additional $200 billion in Chinese goods and China responds in kind, as it has vowed to do, economic experts say. Of course, SHTFPlan warned of this before Trump flung the US into a full-blown trade war. The people who will suffer the most are those at the bottom, as in any financial crisis or trade war.
While the tit-for-tat tariffs could hurt both economies, the damage to China’s economy caused by the US’s Section 301 tariffs will “pale in comparison to the damage done to the US economy via China’s retaliations,” reported SHTFPlan back in April. Tariffs imposed on Chinese goods aren’t actually paid for by Chinese companies, as the American government would have you believe. China will simply jack up the prices of their goods and the cost will be effectively passed onto the American consumer in the form of higher prices. This is simply economics 101, something that most Americans fail to comprehend in even the simplest terms.
“Tariffs are beginning to take a toll on American businesses, workers, farmers, and consumers as overseas markets close to American-made products and prices increase here at home,” said U.S. Chamber of Commerce President and CEO Thomas J. Donohue in a statement according to NBC News. “Tariffs are simply taxes that raise prices for everyone. Tariffs that beget tariffs that beget more tariffs only lead to a trade war that will cost
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