When it comes to YOUR MONEY, we want to take it a step further. That's why Mark Grywacheski appears on Good Morning Quad Cities every Monday to give us his analysis of the latest business, economic, and financial news.
On Monday, May 20th, Mark talked about the recent escalation in the trade war between the U.S. and China. Earlier this month, President Donald Trump raised tariffs from 10% to 25% on $200 billion of Chinese goods. Then, a week later, China retaliated by raising tariffs to 25% on $60 billion of U.S. goods. A rise in tariffs means a rise in prices:
"Tariffs are essentially a tax, so consumers will be facing higher prices on these imported goods from China," Mark explained. "Of this $200B of Chinese goods, about 25% are considered consumer/household goods. Consumers can choose to buy similar products made in the U.S. or imported from some other country, but often - because of a lack of similar products, higher quality, or simply consumer preference - consumers will be forced to pay a higher price for these Chinese goods."
Mark also talked about the impact on businesses and manufacturers, as well as why China may be forced to come to a resolution with the United States sooner rather than later. Click the video above for our full conversation.