How much new China tariffs could cost American households: JP Morgan analysts

[beijingwalker]

How much new China tariffs could cost American households: JP Morgan analysts
By James Leggate
Published August 19, 2019
Trade WarFOXBusiness

The next round of tariffsOpens a New Window. on Chinese goods could knock American households for $1,000 per year, according to a new analysis from JP Morgan.

The U.S. is poised to add 10 percent tariffs on $300 billion in Chinese goods with some items subject to higher duties starting Sept. 1 amid the ongoing trade war.Opens a New Window. President Trump said last week that the tariffs for some items like cellphones, laptops, video games and clothes will be delayed until Dec. 15.

Yahoo Finance reported the $1,000 hit to American households would be up from about $600 after the first two phases of tariffs on Chinese goods, according to JP Morgan’s analysts.

The upcoming tariffs will come with a larger direct impact for consumers, according to the analysis. That means consumers may be forced to reduce their spending on discretionary goods and services.

“Unlike the agriculture sector which is receiving subsidies/aid to offset the impact of China’s retaliatory actions, there is no simple way to compensate consumers,” the analysts wrote.

The impact could even offset most of the benefits households received from the Tax Cuts and Jobs Act Trump signed in 2017, which the analysts said came in at about $1,300 per year.

American households would feel an even bigger impact if tariffs on Chinese goods were raised to 25 percent, as the president has threatened and the U.S. already imposes on other items from China. The analysts said that could cost American households $1,300 per year.

But will it come to that? The analysts said they expect tariffs will be rolled back before the 2020 presidential election.

“We believe there is a good chance they end up reversing their decision and finding a way to reach some common ground with Chinese negotiators,” the analysts wrote.

It may just depend on how soon China will agree to “a better deal.” White House adviser Kellyanne Conway said on “Fox & Friends” Monday that Trump has taken a “long view” on negotiations.

“He wants a better deal,” she said. “He inherited a very imbalanced, non-reciprocal, unfair trade deficit with China.”

https://www.foxbusiness.com/economy/china-tariffs-cost-american-households-jp-morgan

 

[zectech]

“He wants a better deal,” she said. “He inherited a very imbalanced, non-reciprocal, unfair trade deficit with China.”

When Chinese made inferior quality items at cheap cost and was not a threat militarily, China was viewed as slave labor to keep inflation down in the West. Now that the Chinese save money and many are getting rich, and make superior products that will last... making durable good is a national security threat and crazy rich asians is a national security threat.

This is like complaining that a gold mine is sending out gold and not allowing imports to the gold mine of un-needed items like clothing and food. China is an export economy. Americans need cheap goods to hold down inflation. China was being used for 40 years as a slave labour market. What is getting Washington mad is that China, somehow saved money during those 40 years and got rich. The slave Chinese are not slaves and that pisses off Kellyanne Conway... gotta move production to Vietnam and this time don't allow those slave Vietnamese to become rich. The Vietnamese better balance the trade and buy 50 billion a month in Coca-Cola to get diabetes or cancer or else you will anger the trump orange monster.

There isn't anyone in the free world interested in buying any of the crap made in Israhell or Amerika.

Buy German for machine tools, buy Chinese for consumer goods. Buy Indonesia for goods. Buy Bangladesh for quality garments. Amerika is irrelevant.