(CNN) – The markets are already reacting, and your nest egg is feeling the pinch.
“If you look at your 401k today, you’re seeing a major drop,” said Chris Burns of Dynamic Money.
Wall Street had its worst day in four months as the trade war between the U.S. and China escalates. Experts say now is the best time to reassess your investment tolerance.
Burns advises, “Focus on what you can control which is how much risk you’re taking and if you take your 401k to a risk level you feel good about, then you have peace no matter what the government decides to do tomorrow.”
It’s not just investments taking a hit. Your wallet could be next if those tariffs extend to consumer products.
China would likely hike up prices on smartphones, computers, televisions, fitness trackers and much more. The impact for the average American family of four is expected to be close to $800.
What’s driving up costs?
Experts say those additional tariffs create a ripple through supply chains. That means companies will likely pass on the expenses to consumers instead of taking the financial hit.
Accord to Burns, “There’s no clear cut we’re hurting them or they’re hurting us. we’re hurting ourselves at the same time.”
Three-quarters of the toys bought in the U.S. are made in China. Ninety-three percent of Chinese footwear including some Nike shoes could become pricier. So could clothing, Bluetooth headsets and even drones.