President Trump plans to begin enacting additional tariffs on China to pressure negotiators to reach a trade agreement. According to the White House, talks between the U.S. and China are scheduled again in September.
President Trump took the trade war to Twitter again Thursday afternoon, announcing additional tariffs against China starting in September. Investors were not happy with that announcement, as the Dow dropped 600 points Thursday. Financial reporter Rebecca Jarvis says the fallout is likely to get worse, and could impact your long-term financial picture as well.
“It works as a tax on everyone, and that’s why an analyst called it a sword at the throat of the US economy,” Jarvis said. “The federal reserve has laid out the fact that tariffs are the single biggest threat to the US economy and the global economy. What they ultimately mean is that prices go higher, you see it in your 401k, and in the longer run, it can hit jobs, because if businesses are either passing these costs off to consumers, or absorbing them, that’s going to ultimately ripple down to the the that they’re employing.”
Trump says the U.S. will start “putting a small additional tariff of ten percent on the remaining $300 billion of products coming from China” starting September 1st.
The comments follow a recent meeting this week between the U.S. and China. Earlier in the week, Trump said the talks were productive, but China has yet to follow through on its alleged commitments to purchase U.S. agricultural products. The move is undoubtedly a tactic aimed at forcing China to commit to a trade agreement. When the U.S. first threatened this new round of tariffs earlier this year, China struck back with a threat to raise tariff rates on $60 billion of U.S. goods.
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