Trump escalates trade war

Donald+Trump+and+Chinese+President+Xi+Jipeng+greet+each+other+at+the+G-20+summit+source+Kevin+++++++++Lamarque+for+Reuters+

The Wall Street Journal

Donald Trump and Chinese President Xi Jipeng greet each other at the G-20 summit source Kevin Lamarque for Reuters

How does the ongoing trade war with China impact you?

 

President Donald Trump raised tariffs on imports of electronics from China to 15%. This is expected to affect $300 Billion worth of imports according to the Wall Street Insider. 

 

The New tariffs are part of an ongoing attempt by the Trump Administration to spur American manufacturing by increasing imports of manufactured goods. This tariff is the latest in a series of tariffs which has affected more goods than any tariffs since 1931.

 

The Trump administration will not roll out the increase until December 15 to avoid compromising Christmas shopping. However, last minute Christmas-shoppers may find themselves affected by price increases due to the higher tariffs. 

 

Increased tariffs will likely cause companies to raise prices on products in order to maintain their current profit margins. This will have a negative impact on consumers that want or need a new electronic device.

 

A memo from the State Council’s tariffs commission on August 28 stated that the Chinese government will have no choice but to respond with tariffs of their own.

 

The memo contradicts a later statement on August 29 from Minister of Commerce Gao Feng which claims China will not escalate the trade war. 

 

If China does respond to the increase in tariffs, the main impact will be cutbacks due to the loss of trade with China. This may result in American citizens losing their jobs.

Experts say the trade war this tariff is a part of will have a negative impact on both Chinese and American companies and consumers for years to come.