How a Trade War with China Affects Consumers in the United States

When the U.S. Announced that it’ll be implementing tariffs on imported steel and aluminum, China responded with their own on primarily American exports such as pork. This trade war started when over 1,000 items made in China were sanctioned by the Trump administration with $50bn worth of measures. The 25% import duty tax on printer supplies from China and other consumer electronics are directly affected by the implemented tariffs.

Why the Average U.S. Consumer Should Be Concerned about Trade Wars

There are many ways this trade war between the U.S. And China can affect U.S. consumers. When companies notice a decline in their profits due to the increased fees in operating and manufacturing in China, prices on items that are sold in the U.S. are going to increase. Companies like Apple use screens that are mass-produced in China which could mean that the prices for their future releases are going to be heavily affected by the tariffs.

The increased tariffs could also cause mass layoffs for workers both in the U.S. And in China. Companies that strongly rely on equipment and parts produced in China will have to start investing in other places where they can manufacture these items. Instead of using funds to hire and pay workers in the U.S., these companies may look for other long-term solutions while temporarily reducing allotted funds to customer service.

How Americans Will Feel the Effects of a Trade War with China

Americans rely on China for a wide variety of products. Motor vehicles, alcohol, and food are the most common imports from China outside of electronics. Due to the threat of the tariffs on these, there could be a decreased demand to import them which could cause supply shortages. Supply shortages generally cause products to be even more expensive regardless whether they were sold wholesale or are for retail. Though the demand increases, there’s simply no way to meet them unless companies increase their production budget in these cases.

Unless a change in the flow of production, importation, and exportation is introduced by U.S. companies with manufacturers in China, there’s going to be a shift in many industries. This could also lead to a minor form of recession. A full-on trade war between China and the United States could also risk the success currently being experienced by many companies in the U.S. That have joint ventures in China and other East Asian countries. This will be felt by the employees of these companies. In the global economic landscape, interdependency between countries will not seize to exist and any wrinkle in the relationship should always be solved with all factors weighed and considered properly.

Preparing for a Possible Trade War between U.S. and China

In the grand scheme of things, consumers will suffer the worst when a trade war happens between the two powerhouse nations. Increased prices for almost virtually all products will be observed. Jobs in customer service will decrease while manufacturing companies based in the U.S. Will see an increase in client base over time. Depending on the economic climate in the next year, consumers will also have to deal with fluctuating supply and demand in both exports and imports.