Prices of consumer good across the board made in China could be going up for American’s….
Donald Trump’s playing chicken with China would be the reason…
Could this effect the overall American economy?
Oh, and there is a midterm election coming in a little more than a month….
The latest impact will begin to hit Monday as new 10 percent tariffs Trump slapped on over $200 billion in imports from China are scheduled to go into effect. That tariff rate is set to rise to 25 percent on Jan. 1 if the Chinese don’t capitulate to White House demands. Trump has also threatened to bump the total up to over $500 billion in imports, which would hit nearly every product China exported to the U.S. last year.
Economists expect that to translate into higher prices for consumers across the country and special pain for low-to-middle-income voters who make up much of Trump’s base — and are least able to absorb increased costs for consumer goods from air conditioners to clothing and furniture. Republicans are counting on getting Trump supporters to the polls in November to hold off projected Democratic gains in the House and potentially the Senate. Forcing consumers to pay higher prices could make that harder.
“If you are kind of in the middle- or lower-income groups, you are buying a lot of what economists call tradable goods and you’ll be hit a lot harder,” said Kyle Handley, assistant professor of business economics and public policy at the University of Michigan’s Ross School of Business. “This is basically the Trump voter who is going to see the biggest hit to their total spending.”….