China’s tariffs cost for US consumers will be $1,000 a year
Near a year after the trade war between China and America, China’s tariffs cost for US consumers is squarely in the center of attention and, households supposed to face up to $1,000 in additional costs each year from tariffs, according to a new report from JP Morgan.
Consumers, that spending fuels about 70 percent of the U.S. economy, have been widely protected from earlier series of tariffs, which have left businesses reeling and upended global supply chains. But that’s about to change with the 10 percent levies on roughly 300 billion dollars in Chinese imports, about a third of which will take effect Sept. 1. Those tariffs will fundamentally target consumer goods.
The U.S. is poised to add 10 percent tariffs on $300 billion in Chinese products with some items subject to higher duties starting Sept. 1 amid the ongoing trade war. Opens a New Window. The effect of these tariffs is so significant that it caused President Trump to public notice, for the first time, that American families will bear some of the burdens of his trade policies. Amid growing concern that the tariffs could damage the economy, Trump suddenly declared he would delay tariffs on particular popular goods such as laptops, footwear, and video games until 15 December.
Yahoo Finance described the $1,000 hit to American families would be up from about $600 after the first two phases of tariffs on Chinese goods. The future tariffs will come with a larger direct impact for consumers, according to the analysis. That means consumers may be forced to decrease their spending on discretionary goods and services.
“What we’ve done is we’ve delayed it so they won’t be relevant in the Christmas shopping season,” Trump said newsmen last week. “Just in case they might have an impact on people.”
However, that’s not enough to pass the added burden for consumers. JPMorgan researchers calculated that after the 10 percent levies go into effect, American families will be facing about $1,000 in extra costs from all tariffs on Chinese goods annually. If the upcoming tariffs are increased to 25%, as Trump has warned, consumers’ costs could go as high as $1,500 a year.
There is no way to counteract consumers
“Unlike the agriculture sector which is receiving subsidies to offset the results of China’s retaliatory actions, there is no simple way to counteract consumers,” the analysts wrote. The impact could even offset most of the benefits households received from the Tax Cuts and Jobs Act Trump signed in 2017.
If Chinese goods tariffs grow to 25 percent, as the United States is now imposing other Chinese items, even if Chinese commodity tariffs rise to 25 percent, even if Chinese commodity tariffs rise Even if tariffs on Chinese goods rise, it will have a bigger impact.
Will this happen or will both countries come to a “better deal”? It all depends on how China works. Kellyanne Conway said on “Fox & Friends” Monday that Trump has taken a “long view” on negotiations.“He wants a better deal,” she said. “He inherited a very imbalanced, non-reciprocal, unfair trade deficit with China.”
Shoes are a prime example of tariffs’ cost for US consumers
Who pays for the US-China Comet War? Probably you. It means the consumer. If you live in the US, the shoes you buy will probably be expensive soon. The American Shoe Dealers and Distributors Union predicts that a $ 150 pair of running shoes will sell for $ 206 soon.
Concerned that shoe market giants such as Adidas, Nike, Dr. Martinez, Connors and hundreds of other companies in an unusual move have urged the US president to stop the trading war with China.
In their letter, company executives warned Mr. Trump that a 25% tariff – if applied – would have disastrous consequences for consumers, and would put pressure on the working class most of all. New tariffs – if applied – will raise the price of many consumer goods imported from China. The United States imports $ 325 billion worth of goods from China each year.
But the point is that tariffs aren’t just for shoes. It encompasses a range of consumer goods, from home appliances to frozen meats and fruits and vegetables. For instance, the results of a new study at the University of Chicago show that the price of a washing machine has risen 12 percent.
Donald Trump believes America has won the war so far. But a recent paper by several economists, including World Bank chief economist Penelope Goldberg, said the two countries’ trade wars and new China’s tariffs cost for US consumers.
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