China, Josh Zoom, Wall Street Journal discussed on This Morning 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've 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 people don't buy huge amounts of steel, 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 kinds of products, you know, chemicals and turbans and factory machinery is really disruptive to some of the businesses that used to stuff, but that it that consumers aren't feeling is directly, and what's different about this new terror threat. The president has said he's going to raise tariffs against China on about two hundred billion dollars Chinese imports from ten percent to twenty five percent. I huge amount of goods that are going to get hit by this. New tariffs are consumer goods. It is things that people buy it's furniture food items. It's handbags it's you know, a payroll, it's a really broad. It's it's really broad amount of things that people buy stores that are going to be in a big way for the first time in this trade war. So do we pay more for those other items? Steal and not actually realize it. Yeah. That's exactly what what's been happening. I mean, the prices of stealing aluminum move have gone up quite a bit. But as a consumer you don't necessarily notice that you know, when they first now, stealing aluminum tests commerce secretary went on TV, and he held up a buck Cana Campbell Soup. And he said, look, there's only three cents of steel in this and you're not gonna and that's right. I mean, it was a hit for Campbell's soup. But you know, the average consumer didn't really notice the price of soup going up because it was a small part of the overall cost of canned soup. So it's easy to miss that. Even though today significant for the company that's easy for the consumers dimiss that. But now when you're talking about putting these tests directly on consumer goods, you know, it's not in in a lot of cases have been a couple of products where they did put the tariffs on the product directly. One example, washing machines, they put washing. They put tariffs on washing machines last year and the price shot up about twenty five percent almost right away. So that the price happened there just with that most people by washing machine off. 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 suddenly going 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 U S, 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 gonna be the interesting thing to see. I mean, part of the reason that the administration was a little bit in bold into to step is the economy had been doing really, well, you know, consumers doing well. The jobs report has come in and it's been positive and so the administration has about like the trade action. So far, you know, they hadn't they still they could they could do bigger things. Now, if they take these actions that does have a bigger economic effect. It has a market affect if consumers. Start realizing why some of the prices at the store going up. You know, I think the washing machines even people who noticed the washing machines are more expensive warrant necessarily following things closely enough to make the connection that was because of the trade actions, but you know, people do start to notice if it starts showing up in polls or something like that. I think you 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. Therefore, China's economy is hurt. And there's a a a grant agreement reached. Well, it's it's it's not totally clear. What the indigo is. I mean, one scenario would be that the White House is trying to apply a lot of pressure to China to get a really good deal 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 of China and US companies we'll have more. Ability to sell things in China. That's one possibility. Thanks. Josh. Josh zoom Brin economics reporter at the Wall Street Journal, twenty.