Financial Focus: Should you be concerned about tariffs?

10:24 AM, Sep 21, 2018

COLORADO SPRINGS – The trade war between the United States and China continues with the two governments imposing billions of dollars in penalty duties on each other’s exports.

Should the average American be concerned? Our partner at Carlson Financial broke down tariffs for us and what direction he believes this trade war could go.

Carl Carlson, CEO of Carlson Financial, said tariffs and trade wars are nothing new for the U.S.

“A tariff is when a country puts a tax on goods being shipped into that country.”

Carlson said when country’s implement them “we end up paying more for goods coming in which affects our consumers and then the same thing happens in the other country.”

For some people, the current trade war between the U.S. and China feels a little more intense than the previous ones.

“I think part of that reason is just President Trump’s negotiating skills and how he goes about doing things.”

Carlson said typically the U.S. hasn’t gotten much out of tariffs, but this time around things seems to be changing. He said the U.S. is “getting trade more balanced between us and some of the European countries…we may see a little more escalation, but I think in the end it’s going to work out and we should be able to get a little more fair and balanced trading with other countries.”

When it comes to China, Carlson believes that “this trade war between us and China will get worked out and when it does it’s going to be a positive effect in the stock market.”

It’s a positive effect that he foresees lasting for the next several months.

“Not a major concern to me about all the trade wars and so I think people need to know that…it’s just a small piece and over the worldwide economy that’s an $80 trillion economy.”

However, he does want to caution that everyone’s situation as an investor or consumer is different.

For those wondering if now is a good time to enter the stock market, Carlson said he recommends speaking to a financial professional first.

Carlson Financial is a sponsor of Financial Focus.

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