The trade war between the world’s two largest economies is about to impact your wallet, literally! Pocketbooks are among the thousands of Chinese exports facing a 10% tariff, along with handbags, apparel, refrigerators, mattresses and even furniture.
Jeffrey Tucker, Editorial Director, American Institute For Economic Research says, “It’s costing all kinds of bureaucratic headaches on the parts of producers, exporters and importers all over the world.”
Seafood, soy sauce and rice are also on the list. Economic experts say the additional taxes will ripple through supply chains, forcing companies in both countries to decide whether to take a financial hit themselves or pass it along to consumers.
Says Tucker, “Either case is bad news. No one wins with these kinds of policies.”
And those cheap Chinese TVs will also be a thing of the past. That’s because the tariffs target the components necessary to make the TV sets and displays.
According to Tucker, “It’s gonna be all electronic goods. Not just televisions. All the component parts of all the internet of things are going to be more expensive.”
Experts say the real surprise hit may come during the holiday shopping season. Even though clothing, shoes and toys were excluded from the initial list, the parts and machinery used to make those items may be impacted, which could raise prices.
Tucker warns, “A lot of people are gonna be finding themselves getting more interested in goodwill come 2019.”