According to Sources increase in Tariffs may cost Americans $1,000 a year
The United States President Mr. Trump and his consultants claim that trade conflicts with China will not cause any problems to American consumers. However, analysts have a different opinion. Current fares already enforced on China are expected to cost approximately US $ 600 per year. However, if Trump imposes tariffs on the US $ 300 billion of United States imports from China then currents trade will increase up to US $ 1,000. It shows that how Trump is making dangerous moves by increasing trade conflicts with China; which include tariffs on consumer goods, TVs, video game consoles, and apparel. This tariff will make an impact on the United States voter or consumer ahead of the election. Trump management said that Consumers aren’t hurt and China is carrying the burden.
Reprisal between two most significant economies impends to set off a recession. This risk has flashed an instability in the stock market, and people are investing their money in bonds instead. Kristina Hooper said that due to policies and trade wars, even the most robust economies could become susceptible to recession. Before implementation of the Smoot Hawley tariff act, the American economy was in a boom and was facing deficient unemployment. Trump has accelerated the trade war with China by promising to impose 10 percent tariffs on US $ 300 billion of the United States imports from China. This includes large number of consumer goods.
Trump administration has postponed imposing tariffs on smartphones, video game consoles and toys till 15th December. However, Trump’s advisors warned that increasing taxes in December will ruin Christmas. Some goods from China are in line to get hit of 10 percent. Products such as meats, peanuts, footwear apparels, TVs, smart speakers, printers, and cheese are scheduled to get hit. In this situation big companies have a chance to absorb taxes, as they have greater control to increase the prices. It will create an impact on small businesses as they might have to cut jobs to cope with the taxes.