Josh Zoom, China, Wall Street Journal discussed on This Morning - America's First News with Gordon Deal
Technology advisor today, the U S China trade conflict is headed for America's shopping centers. When the Trump administration began placing tariffs on Chinese imports last year. It cushioned the blow to consumers by targeting items purchased by US manufacturers and other businesses, but the higher tariffs set to go into force tomorrow would apply to items purchased that we buy directly like furniture and clothing at stores like target, WalMart and Macy's. It's a story by Josh zoom Brin economics reporter at the Wall Street Journal. Josh, what can we expect? It's going to be a little bit different this time. I mean previous rounds of cares that we'd had over the past year. They've been focused on things that people aren't buying directly on. Almost overwhelmingly it's been things like stealing aluminum, don't by the amounts of steel and aluminum directly. It's in the products we buy, but you're not buying it directly. And when they initially hit China with tariffs last year, they really focused on the same products chemicals and turbans and factory machinery is really disruptive to some of the businesses that used to, but it did consumers aren't feeling directly and with different about this new terror threat. The president has said he's going to raise tariffs against China on about two hundred billion dollars to Chinese imports from ten percent to twenty five percent, huge amount of goods that are going to get hit by this new. Consumer goods it is things that people buy furniture food items. It's handbags it's you know, a payroll a really broad. It's really broad amount of things that people buy stores they're going to be in a big way for the first time in the war. So do we pay more for those other items like steel and not actually realize it? Yeah. That's exactly what what's been happening. I mean, the prices of steel and aluminum move have gone up quite a bit. But it consumer you don't necessarily notice that you know, when they first now, stealing aluminum commerce secretary went on TV. Campbell soup. And he said, look, there's only three cents of stealing. This can you're not going to hit for Campbell's soup. But you know, the average consumer didn't really notice the price of going up because it was a small part of the overall cost of. Not Tim to miss that. Even the very significant for the company for the consumers to miss that. But now when you're talking about putting these directly on consumer goods, you know, it's not in in a lot of cases a couple of products where they did put the directly one example examples washing machine, stay put washing tariffs on washing machines last year and the price shot up about twenty five percent almost right away. Happened there. It's just that by washing machine, very often. So you don't necessarily notice. So once it hits things that people buy on a more regular basis. It's certainly possible that a lot more people are sending to notice the effects of this speaking with Wall Street Journal economics reporter, Josh zoom. Brin species called consumers could be hit as new front opens in US China trade fight talk about the latest round of tariffs that could go on Chinese imports scheduled for Friday. So that said could we then hear more consumer outcry? Well, that's going to be the interesting thing to see. I mean, the reason that the administration was a little bit emboldened to to step had been doing really well. You know, consumers or doing well the jobs report has come in. And it's been positive and city administration has the trade action. So far. You know, they hadn't they still they could do bigger things. Now, if they take these actions at does have a bigger economic has a market effect. If consumers star realising, why some of the prices are going up the washing machines, even people who noticed the washing machines are more expensive necessarily following closely enough to make the connection that was because of the trade actions. But you know, if people notice it starts showing up in polls or something like that. I think he would really see the administration have to grapple with with how they're going to carry out their strategy the whole peer be that we see things more expensive. Therefore, we don't buy them therefore China is in shipping as many in there for China's economy is hurt. And there's a a grant agreement reached. Well, it's it's it's not totally clear. What is I mean? One scenario would be that that the White House is trying to apply a lot of pressure to China to get a really good -til in place. It would eventually mean that all these cats are going to go away, and there's going to be kind of better trading terms. China companies will have more ability to sell things in China possibility. Thanks, Josh, Josh zoom Brin economics reporter at the Wall Street Journal, twenty minutes now in front of the hour on This Morning, America's first news. This human resources professional is a rockstar. Thanks to Cronos. And this is hype song. Have HR payroll talent and time..