President Trump is making a clear threat for more tariffs for Chinese goods if they retaliate against levees put in place by the US. Last month, Trump enacted almost tariffs on $200 billion dollars worth of Chinese imports.
The President stated last week that he believe China is not yet ready to make a deal on trade with the US, and that the past 25 years of trade have been solely in China’s favor. Trump threatened China with $267 billion more in tariffs if they escalate the trade dispute, in which case the situation would most likely be an all out trade war.
Several meetings meant to help the two nations come to trade agreements have recently been cancelled. China has already responded to the 10 percent import tax by enforcing its own 10 percent import tax on American supplies.
Only time will tell whether or not these kinds of policies will help our economy or hurt it, as it takes a year or so to truly see the effects of these tariffs. Still, consumers and retailers are getting ready for the certainty of a rise in the prices of Chinese goods, which the market is chock full of. And the tariff prices will certainly be passed on to consumers.