President Trump has decided to impose tariffs on $200 billion in Chinese goods, two people briefed on the decision said, one of the most severe economic restrictions ever imposed by a U.S. president. [snip]
The new tariffs would apply to more than 1,000 products, including refrigerators, air conditioners, furniture, televisions and toys. These penalties could drive up the cost of a range of products ahead of the holiday shopping season, though it’s unclear how much. [snip]
Trump has ordered aides to set the tariffs at 10 percent, likely leading to higher prices for American consumers. These tariffs are paid by U.S. companies that import the products, though they often pass the costs along to U.S. consumers in the form of higher prices.
The U.S. imports roughly $500 billion in Chinese goods each year, and — combined with existing tariffs — these new penalties would cover half of all goods sent to the U.S. from China each year.
The 10 percent tariff is scaled back from Trump’s initial plan to impose 25 percent penalties on all of these imports. But the impact will still likely be felt by millions of American consumers.The impact on American consumers is one half of the problem. The other half will be China's retaliation (automobiles and automobile parts? agricultural goods? medical devices? semiconductors? commercial airplanes?). The layoffs and bankruptcies are sure to follow.
The timing -- less than two months before the mid- terms -- is testament to Rump's inability to absorb information that runs counter to his long- held shibboleths, as well as his "fifth or sixth grade understanding" of most things, including economics and politics. No offense to fifth or sixth graders intended!
