How the Trade War with China could Hit You: Higher Prices, Lost Jobs and Falling Stocks

05/10/2019

|

Paul Davidson | USA Today

The Trump administration early Friday more than doubled a U.S. tariff on $200 billion in Chinese imports, from 10% to 25%, sharply escalating a trade war between the two countries. The president also threatened to slap a 25% tariff on almost all the remaining $325 billion in goods shipped in from China.

Negotiators for the United States and China ended a session of trade talks in Washington on Friday without an announcement of an agreement, hours after the new tariff hike took effect.

USA TODAY economics reporter Paul Davidson takes a look at how the tariffs will affect U.S. shoppers and the economy.

Why did President Trump impose the higher tariff?

White House officials say U.S. and Chinese negotiators were close to an agreement to resolve their trade fight but then China backed out, refusing to codify the deal in Chinese law.

[To read the original article, click here.]