Trump's latest tariffs are about to hit you where it really hurts

pulse

September 19, 2018 7:48 PM

President Donald Trump's newest round of tariffs on $200 billion worth of Chinese goods is the first time during the US-China trade war that consumer goods will get hit with duties. This could lead to a price increase for the average American shopper.

will be meaningful," economists say.

President Donald Trump's latest round of tariffs added a new dimension to the trade war with China: US consumers are going to get hit directly.

The latest round of tariffs, a 10% duty on roughly $200 billion worth of Chinese goods coming into the US, went into effect on Monday adding a new layer to Trump's trade war with China.

The previous round of tariffs imposed by the president on $50 billion worth of Chinese goods focused almost exclusively on industrial goods and intermediate parts on final goods that are then sold to consumers.

This led to an indirect hit to consumers. As businesses faced higher costs for input goods, the companies were forced to either cut back in other areas — such as laying off workers — or pass along the price increase to consumers.

While the effect on consumers has trickled down previously, the latest round of tariffs constitutes a direct hit.

Many of the 5,745 items on the newest tariff list

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