We hear the impact of the tariffs will hit us in our wallets, but exactly what goods are we talking about? Here are three items we all use regularly…
The Trump administration’s insistence on a trade war will affect three items the most. Americans will be footing the bill for president Donald Trump’s trade war and tariffs, and vacuums, tires, and computer parts will be the items hit the hardest.
By now, hopefully, Americans have put two and two together and figured out that it isn’t the Chinese government that will pay for Trump’s tariffs, but the Chinese consumer.Much like the American government will not pay for China’s tariffs, it will be the American consumer. Those costs are passed on directly to the public in the form of higher cost of goods. And if you’re looking for a new vacuum or tires, or maybe you’d like to upgrade your computer, expect much higher prices immediately.
President Donald Trump announced a new tariff on $200 billion worth of Chinese goods on Monday. The tariffs, which go into effect September 24 (today), will hit a wide range of goods, from furniture to industrial chemicals and Americans already living paycheck to paycheck will definitely feel the pressure in their wallets. It’s about to get a lot harder to make ends meet thanks to the government.
Economists expect that the items hit by the 10% tariff will cause an increase in price, making those goods more expensive for United States consumers and businesses. A total of 5,745 items will see their prices jump, but some goods will go up sharply while others will only rise a small amount. Business Insider analyzed data from the US Trade Representative’s tariff list and the US Census Bureau’s database, and the Trade News Centre broke down how much of each good was exported to the US from China in 2017 to determine the most important items that will get hit.
There were 14 items on the tariff list that topped $1.5 billion in import value last year. The goods spanned several industries, including auto parts, circuit boards, and chairs. But tires, an already expensive necessity for most Americans (who already put it offbecause tires often cost more than a month’s worth of rent), will likely leave the biggest dent.
Economists are also warning that the increase in inflation from the new trade war attack “will be meaningful” and Americans will feel this financially immediately. The other horrible consequence of Trump’s trade war is a loss of jobs. As businesses face higher costs for input goods, companies in the US are being forced by the government to either cut back in other areas (such as laying off workers) or pass along the price increase to consumers. Neither of those are good options for an economy on edge and a nation $21 trillion in debt.