The trade war: It sounds like something scary, but so far, you probably haven’t noticed it. That’s because this war is more like a snowball rolling downhill.
It all started small, with tariffs on washing machines and solar panels back in January.
Then, President Trump added steel and aluminum tariffs in March. That caused China to fire back, starting with tariffs on fruits, nuts and pork.
But the trade war really ramped up in July, when both sides announced tariffs on $50 billion worth of each other’s goods. The U.S. set tariffs on more than 800 Chinese products, including airplane parts and engines. China hit back with tariffs on soy beans, fish and more.
Yet, unless you’re importing these goods or in one of these businesses, you probably haven’t felt the effects of these tariffs.
That could change soon. On Monday, Sept. 17, the U.S. announced tariffs on an additional $200 billion worth of Chinese goods. That would equal almost half of all our imports from China.
And that means you could feel the effect very soon, because while tariffs are like a tug-of-war between countries to give their own businesses a leg up, the additional cost of these tariffs often get passed on to the consumer.
So you’ll see higher prices on various products, forcing you to pay more or live without.
And if China retaliates, the impact will only continue to grow.