I’m Mary Walden, with economist MW, welcoming you to the economic perspective. Today’s program looks at costs of the new tariffs. Mike, trade negotiations between China and the US took a new turn recently when the sides couldn’t reach an agreement. Consequently, both countries have increased tariffs on imports from the other country. What impact will this new round in the trade war have on consumers?
Mike: Summary Answer
- Many of the previous tariffs were on inputs – new ones are on products consumers directly purchase
- Luggage, clothing, appliances, electronics are some of the examples
- Estimates suggest average consumer will pay between $400 and $700 annually due to the new tariffs
- Will be on lower range if sellers absorb some of the higher costs
- Another helping factor – rising value of the $ against the Chinese yuan
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.