China has decided to implement tariffs on $75 billion worth of U.S. goods as the U.S. plans to impose tariffs on $300 billion worth of Chinese products.
These additional tariffs will cover almost all of the remaining U.S. products imported to China.
The move comes as President Donald Trump continues to express optimism when it comes to the trade war with China.
China will impose the tariffs on September 1 and December 15, the same dates as the new U.S. tariffs. U.S. cars will receive a 25% tariff. China slapped a 10% tariff on pork imports. A 5% tariff will go with auto parts and components, soybeans, and crude-oil imports. The Chinese did not include liquified natural gas.
Trump announced new tariffs in early August, which led to China “freezing purchases of U.S. agricultural products and letting its currency drop to its lowest level in a decade.”
The Wall Street Journal pointed out “[A] weak yuan makes Chinese exports cheaper.”
I hate tariffs. I do not keep that a secret. However, I refuse to go into the doom and gloom like so many other people. I’ve also seen people on Trump’s side say that tariffs have not harmed the economy.
Which side has the correct opinion and facts?
I spoke with a financial friend of mine. He said it’s still too early to determine if the tariffs have started to hurt the economy.
You cannot ignore the fact that consumer spending has risen in the last few months. It hit a record high in July.
The Commerce Department reported, “spending on retail and dining services rose 0.7 percent in July.” Experts predicted 0.3 percent.
The July jobs report showed that hourly earnings went up by 8 cents to $27.98. Wages have increased by 3.2% from this time last year.
Wage growth, even with a slow buildup, illustrates that employers have to entice people to take jobs since the market has started to slim down. More jobs mean fewer people looking for jobs.
People want instant gratification, immediate results and answers. Patience is required when it comes to these situations.
[Featured image via YouTube]
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