Article 4MJFY When Trump turns up the heat on trade, Americans will feel it too

When Trump turns up the heat on trade, Americans will feel it too

by
Guardian Staff
from on (#4MJFY)
Until now, the US has tried to avoid hurting consumers when imposing tariffs. From next month, they will be fully exposed

The timing could not be better. On 1 September 1939, German troops crossed the border into Poland, triggering the start of the second world war. Eighty years to the day later, on 1 September 2019, Donald Trump plans to impose a 10% tariff on a fresh range of Chinese imports into the US. If that happens, it will mark the moment when trade's cold war turns hot.

Make no mistake, the unexpected announcement threatens to have serious consequences. Up until now, the Chinese goods targeted for tariffs have been carefully selected to avoid hurting consumers. That is no longer the case. From next month, almost everything China sends to the US will be affected. In bald terms, that means Americans are going to be paying more for their smartphones, laptops and clothes. Trump boasts that the US is going to be "taxing the hell out of China" but he has got the economics completely wrong. The taxes will be paid by Americans faced with paying more for imports.

China is waiting to see whether someone with less protectionist instincts wins the race for the White House next year

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