COLORADO SPRINGS – On Monday, China slapped tariffs on $60 billion in U.S. imports after the White House imposed tariffs on $200 billion worth of China imports on Friday.
The best estimate from economists is that the average American household will pay an extra $800 to $1,000 a year because of higher prices on goods.
Tatiana Bailey, director of the UCCS Economic Forum, said, “It’s a big deal.”
Bailey shared that we’re no longer just talking about steel and washing machines.
“Luggage and backpacks, and seafood and microwave ovens…it’s ubiquitous.”
This latest round of tariffs has added even more items to the list.
“It really puts us in a precarious position.”
As far as how much individual items will increase Bailey said, “Some of the information I just read today shows some goods, normal everyday goods, could increase as much as 5-10 percent just within the next few months.”
Which could mean a consumer empties out their wallet to pay for it or they just don’t buy a product at all.
“What do people do when prices go up? They buy less of something.”
The trickle-down effect is that companies could stop hiring and lay people off.
Bailey said there’s a chance we could someday have tariffs on all good and services and if that happens more than 300,000 jobs could be lost in the U.S.
“I’m really hoping this gets resolved because I think it could be the monkey wrench that tips us.”
As the trade war rages on her advice for people right now is to “try to keep our consumer confidence and our business confidence high. Focus on the things that are working well.”
Bailey said she wouldn’t be surprised if we see $300 billion worth of goods brought into this trade war and a 25 percent tariff slapped on that as well.
As of Monday, the White House said that negotiations with China continue.