President Donald Trump’s trade war with China could cost U.S. households as much as $1,000 per year, according to a report by JPMorgan Chase.
U.S. families are already paying an average of $600 per year more than they were previously paying due to tariffs imposed on Chinese goods.
Analysts are projecting that this could rise by more than 60 percent now that Trump has gone ahead with his plan to levy tariffs on a further $300 billion in imports from China.
Consumer spending fuels 70 percent of the U.S. economy but Americans have so far been cushioned from the impact of the year-long trade war, which has left businesses across the world reeling and upended global supply chains.
“The impact from reduced spending could be immediate for discretionary goods and services since tariffs are regressive,” JPMorgan researchers said in a note.
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Jamarlin talks with Dr. Boyce Watkins about the lopsided relationship between the Democratic Party and Black America. They discuss potential 2020 presidential candidates, Sen. Cory Booker and Sen. Kamala Harris, and whether corporations and interests connected to foreign countries have more influence than Black voters on policy and priorities.
“Unlike the agriculture sector which is receiving subsidies/aid to offset the impact of China’s retaliatory actions, there is no simple way to compensate consumers.”
Trump acknowledged, amid growing concern, that the tariffs would mean U.S. families will have to bear some cost. He said he would delay tariffs on popular products such as laptops, video games and footwear until mid-December.
The delay would, however, be too little to eliminate the burden for U.S. consumers. It’s possible that as Trump raises the tariffs to 25 percent, the cost per household could rise to $1,500 per year, researchers estimated.
