Technology Here’s when Americans will start feeling the pain from escalating Trump-imposed tariffs

15:51  12 july  2018
15:51  12 july  2018 Source:   marketwatch.com

Trump defends tariff moves as allies strike back

  Trump defends tariff moves as allies strike back President Trump is defending his plans to levy billions of tariffs on the nation's closest trading partners even as U.S. allies retaliate one-by-one.Load Error

President Trump signed an order imposing stiff and sweeping new tariffs on imported steel and aluminum at the White House on Thursday.CreditDoug Mills/The New York Times. But foreign leaders warned of a trade war that could escalate to other industries and take aim at American goods.

The Trump tariffs are a series of tariffs imposed during the presidency of Donald Trump . ^ " Here Is What Donald Trump Wants To Do In His First 100 Days". "Why steel tariffs failed when Bush was president". Politico. ^ " Trump Escalates Trade Tensions With Call for New China Tariffs ". Bloomberg.com.

a person standing in front of a refrigerator: Refrigerators, washing machines, lights, auto parts and many other consumer goods could cost more in the fall.© Provided by Dow Jones & Company, Inc. Refrigerators, washing machines, lights, auto parts and many other consumer goods could cost more in the fall.

Very few Americans have paid a price from escalating U.S. tariffs, but if trade fights get worse, the first big bill will come due shortly after the school year starts.

An initial blast of tariffs, mostly targeting $50 billion in Chinese goods, was tailored by the Trump administration to minimize the damage to the U.S. economy. Consumers or businesses could more easily find substitutes for goods whose prices would rise due to higher U.S. tariffs.

Trade-war tracker: Here are the new levies, imposed and threatened

Trump says China could face more than $500 billion in U.S. tariffs

  Trump says China could face more than $500 billion in U.S. tariffs Trump says China could face more than $500 billion in U.S. tariffs.Load Error

President Trump on Thursday imposed tariffs on imported steel and aluminum from the European Union, Canada and Mexico, triggering immediate retaliation from U. S . allies and protests from American businesses and farmers.

In the meantime, Mr. Trump has been escalating his threats, and shows no sign of backing off. “And can we start just by sitting down at the table?” The clash with China began last month, when Mr. Trump imposed tariffs on foreign steel and aluminum, fulfilling a central promise of his campaign.

Retaliatory tariffs by China and other countries have been more limited in scope and largely designed to raise political heat in the U.S. to get Trump to relent. Kentucky bourbon, Harley-Davidson (HOG) motorcycles, Midwestern crops and maple syrup were some of the American goods to first feel the hurt.

“Chinese tariff measures are targeting U.S. agricultural imports due to the expected political backlash among U.S. farm lobbies ahead of the midterm elections in November,” said Rajiv Biswas, the chief Asia Pacific economist at IHS Markit.

The White House is upping the ante, however, with fresh sanctions. The U.S. has launched a sped-up regulatory process to sanction another $200 billion in Chinese imports before the end of September and it’s threatened to bring the total to $450 billion.

This American Cargo Ship Is Racing to China to Beat a Huge New Tariff on the Soybeans it's Carrying

  This American Cargo Ship Is Racing to China to Beat a Huge New Tariff on the Soybeans it's Carrying A ship carrying U.S. soybeans is steaming toward northern China in a race to beat a 25 percent tariff. Peak Pegasus is expected to arrive in Dalian on Friday, the same day that China is scheduled to impose tariffs on imports from the U.S., according to shipping data compiled by Bloomberg and a person familiar with the matter. If it arrives as scheduled, it should be able to clear customs before the tariffs are imposed, according to the person, who asked not to be identified because they’re not authorized to speak to the media. Ship-tracking data currently shows it arriving at about 5 p.m. local time.

The rise of the populist faction is already fanning fears on Wall Street and among foreign officials that Mr. Trump could start and escalate a global trade war or take China cautioned that it was prepared to “make an appropriate and necessary response” should the United States impose the tariffs .

Recently, Donald Trump gave an interview, over this past week, where he talked about his tariffs and the trade war that he has started with China. He said that there' s going to be pain , we're going to feel some pain here in the United States from it. But when it' s all over

“Such an escalation pushes the situation from a trade skirmish to a trade war,” economists at UBS wrote to investors.

For now most consumers don’t have to worry much. The economy accelerated rapidly in the spring and is expected to remain strong through the summer months.

Come fall, though, and the price of many imported consumer goods in the crosshairs of the White House could begin to rise.

China exported about $500 billion in products to the U.S. in 2017. They encompass a vast range of goods such as fabrics, clothing, vacuum cleaners, refrigerators, computers, lighting and so forth — the kind of goods that are no longer made in America or are only made in small quantities.

Absent another source of supply, prices on these goods are sure to rise.

On a bigger stage, a round of tit-for-tat tariffs on steel and autos could substantially raise the price for new cars and trucks. The auto-buying service AutoWise estimates the cost of top-selling vehicles such as a Toyota Corolla, Honda CR-V or Ford (F) F150 could rise by up to $1,000 each.

Auto tariffs would be 'catastrophic' to Canada and cost 100,000 jobs, dealers warn

  Auto tariffs would be 'catastrophic' to Canada and cost 100,000 jobs, dealers warn The U.S. government threat to put a tariff on all Canadian-made vehicles would be "catastrophic" to Canada's economy, costing 100,000 jobs and adding as much as $9,000 to the sticker price of a new car if Canada responds in kind, dealers say. Following recently announced levies on steel and aluminum, U.S. President Donald Trump has repeatedly threatened in recent months to impose a similar tariff on Canadian-made vehicles, something the Canadian Automotive Dealers Association warned Friday may be enough to tip the entire economy into recession.

President Trump on Thursday imposed tariffs on imported steel and aluminum but offered relief to some U. S . allies, as the president “If American consumers are paying higher prices on a wide range of products just as the economy is starting to take off, it can slow the economic recovery,” Phillips said.

'It looks all- American ': Trump wants the whole package in Supreme Court nominee. "Using tariffs isn’t going to start a trade war. "Our nation’ s trading partners can and will retaliate by imposing new tariffs of their own.

Also Read: How Trump’s European auto tariff proposal could backfire

The tariffs could also hurt consumers more generally by raising inflation. Prices in the U.S. have already surged to the highest level since 2012. More tariffs would raise prices even further.

The side effects would be twofold. Higher inflation would eat away at what workers earn, offsetting the benefits of annual pay increases. And rising prices would put pressure on the Federal Reserve to raise interest rates more aggressively, potentially narrowing the arteries of the U.S. economy.

Virtually anyone not inside the White House never thought Trump would go so far. The prevailing view on Wall Street and elsewhere was that he would win some concessions, declare victory and back off. Instead he keeps ratcheting up the rhetoric — and tariffs.

Also read: Why Trump thinks he can win a drawn-out fight over trade with other countries

Most experts agree the U.S. is more open to free trade than other major nations, but they worry the president’s presumed cure will do far more harm than good. And now they fear there’s no turning back.

“Even though the tariffs actually imposed up to now are relatively small in comparison to overall trade flows and gross domestic product, it is hard to see how a full-blown trade war can be avoided at this stage,” said chief U.S. economist Paul Ashworth of Capital Economics. “There is no one left in the administration or in Congress to rein in President Donald Trump’s long-held protectionist beliefs and other countries are not shying away from the fight.”

If a full-blown trade war erupts, consumers won’t long escape the fallout. They’ll be paying higher prices well before the Christmas holiday season.

IMF warns G20 that tariffs will harm global economy as Trump threatens escalation .
IMF warns G20 that tariffs will harm global economy as Trump threatens escalationIMF Managing Director Christine Lagarde said she would present the G20 finance ministers and central bank governors meeting in Buenos Aires with a report detailing the impacts of the restrictions already announced on global trade.

Source: http://ca.pressfrom.com/news/technology/-83330-here-s-when-americans-will-start-feeling-the-pain-from-escalating-trump-imposed-tariffs/

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