The trade war between the United States and China has escalated to a point where now every day American consumers could feel the brunt of this, that’s according to an Iowa State economist.
“The tariffs are just one more step in a tit for tat war with the United States and China,” says Associate Scientist for Economics, Dave Swenson.
President Trump slapped tariffs on billions of dollars’ worth of Chinese goods last week. On Monday, China retaliated
“Over the weekend the Chinese didn’t do anything and then just this morning announced they were going to respond with tariffs on another 60 billion dollars worth of imports.”
President Trump saying on Twitter that the trade war will hurt China more than the U.S. But a local economist says otherwise.
“Contrary to what the president says, we are paying the price of these tariffs, the Chinese aren’t paying for it. And right now it’s being realized in consumption of the United States and higher cost for goods and services that we pay for.”
Swenson says it’s not just Iowa farmers that are going to be impacted by this. But consumers who purchase everyday products.
“The tariffs being imposed are on a wide array of commodities and products including durable goods like washer machines, electronics, iPhone’s. We may see an increase of tariffs on other kinds of clothing, plastic products.”
Because of that, Swenson believes that the hike on tariffs could negatively impact our local economy.
“In the short run right now our economy is suffering, producers are suffering and there is a lot of anxiety and our market does not like anxiety and so so that’s what’s reflective right now in the stock market and the prices being so low today.”
China says they will implement tariffs on $60 billion worth of U.S. goods imported to China starting on June 1.
The ongoing trade dispute hit the markets hard Monday. The DOW dropped more than 500 points following the news that China would move to counter. And soybeans fell significantly.