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How President Trump’s Trade War With China Is Hitting You Hardest

How President Trump’s Trade War With China Is Hitting You Hardest

The trade war with China has, until now, focused primarily on industrial and agricultural goods. With the war heating up, however, consumers in the U.S. are likely to start feeling the pinch.

President Donald Trump is expected to enact tariffs on $200 billion in Chinese exports very soon, meaning more than 50 percent of the goods that come into the U.S. from China will be subject to tariffs. This will likely drive up consumer prices in the U.S.

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It is believed that these new tariffs would hurt everyday Americans as they would be placed on items like refrigerators, freezers, cutlery and towels, which could lead to prices increasing on these items. However, China’s expected retaliation tariffs on $60 billion worth of imports from the U.S. wouldn’t hurt its consumers as much because China’s tariffs would focus on manufacturing components, chemicals, medical instruments, yachts and riding crops.

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This trade war began when Trump announced tariffs on $34 billion worth of Chinese goods on July 6, 2018. As a result, it cost China 25 percent more to export certain products into American markets. These tariffs are primarily focused on industrial goods and include:

  • Nuclear reactors
  • Aircraft tires, engines and engine parts
  • Air and gas compressors
  • Industrial heating equipment
  • Large construction vehicles like cranes, bulldozers and backhoes
  • Oil and gas drilling platform parts
  • Large agricultural vehicles and livestock equipment
  • Food processing machinery
  • Machinery for making glass, rubber and plastic products
  • DC and AC generators
  • Electricity transformers
  • Lithium and other batteries

In retaliation, China placed tariffs on $34 billion worth of American imports. These regulations focused on agricultural products like soybeans, seafood and pork, as well as electric and hybrid vehicles.

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Trump then hit China with $16 billion more in tariffs, also targeted at industrial goods, which took effect on Aug. 23. In retaliation, the Chinese Ministry of Commerce announced a 25 percent tariff on $16 billion worth of U.S. goods, including motor vehicles, fuel and fiber optic cables.

Trump doesn’t seem to think that the tariffs will affect the American consumer. On July 24, he tweeted the following:

Less than two weeks later, Trump declared victory with the tariffs, most of which had not yet been implemented. The president, in a series of tweets, declared:

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