The US under the administration of President Donald J. Trump will likely to suffer more as the trade war with China escalates. Meanwhile, experts concur that the current tariff crisis instigated by the US won't necessarily be the cause for the next global economic recession.
A report from Business Insider reveals that average Americans will soon feel the heat of the rising cost of import commodities from China. This follows on the heels of Washington's latest proposal to slap increased tariffs on Chinese exports worth $200 billion.
The first line of import products to incur additional duties were mostly for industrial use like cranes, bulldozers, and other large or heavy factory equipment.
The new proposal, however, placed basic consumer goods such as food, tobacco and alcohol products on the line of fire. Additionally, minerals such as copper, nickel, and aluminium that are needed for production of consumer tech products like TVs, smartphones, and solar panels, were also included. Even assorted items such as "buttons, stamps, and paintings," weren't spared in Trump's latest tax rates.
An earlier report from the media outlet further discloses the full list of the affected import goods.
A potential price increase will take effect as soon as these new levies are implemented.
In its official press release, the Office of the US Trade Representative stated that the administration has taken into account in their decision the "likely impacts on US consumers, and involved the removal of subheadings identified by analysts as likely to cause disruptions to the US economy."
Meanwhile, the growing trade conflict between the two economic powerhouses is deemed insufficient to cause a major meltdown in the global market.
According to a Wall Street equity research and trading firm staff, Michael Darda, the US-China tariff war can only but hurt the market growth of both involved parties.
"The tariff tit-for-tat between the U.S. and China continues to escalate. Yet, markets have essentially shrugged off the consequences," Darda was quoted as saying. "The market understands that recessions (at least in the U.S.) have always been associated with demand shocks not supply shocks."
