The ongoing trade war dispute between the U.S. and China is about to end but not in the way consumers hoped it would. The U.S. government will begin collecting 15% tariffs on Chinese imports most of which are everyday household items such as watches, diapers, toys, clothes, shoes, and consumer electronics. Consumers will definitely be affected as U.S.-based companies say they will be forced to pass on the price increase onto the consumers.
As The Associated Press reports, for months, Trump–who famously declared that trade wars are “easy to win”–falsely claimed that China itself paid the tariffs and that they left Americans unscathed. In fact, U.S. importers pay the tariffs. They must make a high-risk decision: Whether to absorb the higher costs themselves and accept lower profits. Or pass on their higher costs to their customers and risk losing business.
Because of our new technology where consumers can compare prices via online shopping many retailers for fear of losing their customer base, may choose not to impose the cost of Trump’s higher tariff on ther customers.
Do we need this with the economy as fragile as it is? What do you think?
— Eve Hemingway