Trump’s tariffs will make almost everything more expensive

  • In Trump’s view, countries such as China and Mexico are stealing American manufacturing jobs. 
  • He’s vowed to try and bring those jobs back by imposing tariffs on goods imported from those nations, as well as others, in hopes of deterring companies from making their products abroad.
  • According to CNN, Trump may use an executive order to impose a 5% to 10% tariff on all goods imported into the United States.
  • Tariffs are specifically designed to increase the cost of goods imported into the country, making them pricier for the average consumer 
  • Companies that do decide to move manufacturing back to the U.S. would need time to build local manufacturing plants. 
  • That process could take years and would present an additional cost to the company, which could potentially be passed onto consumers. 
  • Without a corresponding boost to wages, experts say the increased cost of goods could hurt consumers and possibly stunt economic growth. 
  • In fact, studies have shown trade wars disproportionately hurt the spending power of lower-income Americans. Read more

Meanwhile, China is already firing back against Peter Navarro, Trump’s controversial trade advisor

  • China just fired back against Trump’s increasingly hard-line approach to China — in more ways than one.
  • Trump ahas appointed Peter Navarro, an economics professor at the University of California at Irvine, to a newly created role overseeing global trade.
  • Navarro is the author of three books, including Death by China: How America Lost its Manufacturing Base, that take a seriously hard-line stance that not only are China’s trade practices unfair, they’re one of the world’s “central problems." 
  • First the Global Times, China’s partially-state-owned newspaper, published fiery editorial condemning Navarro. In the editorial, the newspaper wrote that Navarro’s nomination alone "may raise risk of Sino-US conflict.”
  • Then, less than a day later, China announced a nearly $29 million fine against U.S. auto giant General Motors over its “monopolistic pricing.”
  • Read more
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