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How Trump Tariffs will soon cost U.S. Families Thousands of Dollars a Year

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TRUMP’S NEW TARIFFS:

There is a trade war going on between China and America and according to experts, this may cost the American families almost $500 per family.

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How much does the trade war cost to the American families depends on the Trump tariffs that have a very strong impact on the economy of the country? It largely depends upon the policies drawn by the White House administration. According to a variety of scenarios put forward by Oxford Economics, the trade war could cost each household approximately $800. The protectionist policies of the White House might have a severe impact on the economy of the country.

According to the rough estimates done by Oxford Economics, in case the 25% tariffs that were implemented on Friday are permanent and China reacts negatively. The U.S financial condition may worsen and the economy might lose $62 billion in the economic output of the country by 2020. If we look at the effect of the trade war on each American household might lose $490 each.

The Oxford Economics

In a more harsh example the company measured the administration increasing 25% tariff on all the things imported from China and not just the in-effect $200 billion. Oxford Economics says that if China does not miss the chance to retaliate the American economy will shrink by $100 billion by 2020. The trade war might cost $800 per household.

The Oxford Economics Chief in a note to the clients said that the ongoing negotiations do have the possibility of a resolution to the issue. But if the trade war between the two superpowers gets escalate it might have harsh consequences on the economy of both of the countries and the world.

The Stock market prolonged a 7 days long sell-off Friday after the U.S President Donald Trump said “there was no need to make haste in reaching the agreement on trade.” He even said that the tariffs will be making the USA “much stronger”.

Most of the major stock averages dropped to the lowest of the day after the Chinese Vice Prime Minister Liu He went out of the Office of the U.S. Trade Representative. The U.S Treasury Secretary Steve Mnuchin said that the Chine trade discussion continued for a week and they were “constructive.”

The ongoing trade turmoil will definitely hit the job market. According to Oxford Economics, the tariff in effect may result in cut down of 200,000, and the growth may drop by 2% in the first half of the next year.

Increase of Tariffs

If there is more increase of tariffs on the imports from China, and China retaliates about it the job cut down will be increased to 360,000. On Friday while talking to a news channel CNBC, Senator Rick Scott R-FLA. said in an interview, that the average American might ignore the Dow’s losses entering the triple-digit but they surely care about the generation of fewer jobs. The American people have serious concerns about the fewer jobs being award.

The strongest point of the Trump Administration entering 2020 has been its reduced rate of unemployment and a strong economy. In April 2019 the American rate of unemployment reached the lowest level in more than 50 years. In the first quarter of 2019, the GDP increased by 3.2% that was much more than the expectations of the analysts. The productivity during the first three months of 2019 saw its best increase in five years’ time.

According to Rick Scott, what and average American cares about his job and the raise in his wage. Rick said that all American economists will like the stock market to move upwards regularly. But what an average American cares about is a good job.

According to Agencies

Many other agencies have been making estimates about the effects of the ongoing trade war between America and China. The need for these estimates is the need of time as the trade war between the two countries has been largely affecting the U.S economy. Both the countries have been constantly increasing the tariffs on the imports between the two countries.

Tariffs are the taxes that put the burden on the average American. This is especially true with Trump Tariffs that he has imposed on imports from China.

The Tariffs on Chinese imports have been escalating at a fast pace since the tension between the two countries started. According to the studies done by the National Foundation For American Policy (NFAPO). If we add the current tariff with the one that the President has threatened China to impose by the end of the current year. Then the total cost of the tariff on consumers will reach $259.2 billion. As stated in the reports this tariff will cost each American household $2,031 per annum. And will continue to be till the tariffs are in effect.

According to the studies, the costs might go even higher, if all the tariffs. That is threatened by the Trump Administration get imposed. They will be added to the current tariff the annual cost that the U.S customers will have to bear is $461.1 billion and the cost for each household will be $3,614.

Final Words

The ever increasing Trump Tariffs will result in the change in prices of a number of articles including cell phones, shoes, and clothing for children and babies, and a lot of other items will be increased. On 1st September the Trump Tariff of 15% on Chinese imports was imposed and another 15% increase in the Tariff on imports is expected by the end of 2019.

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