China's retaliation on tariffs dispute could hit the average Americans wallet hard
After trade talks between the U.S. and China ended with no new deal in place, the Trump administration issued a 25 percent boost on $200 billion of Chinese imports.
Now, U.S. companies and consumers alike are waiting for retaliation from the Chinese government.
President Trump said trade talks between the two countries were "candid and constructive", he issued huge tariffs on Chinese imports just before talks ended on Friday, saying this stronghold against China was long overdue.
"What I'm doing now with China should have happened many years ago, not just Obama, long before Obama," said President Trump in a press conference last week.
With the previous 10 percent hike, American businesses and farmers fronted the cost, with agricultural exports dropping by millions of dollars in the past year.
Now, the 25 percent tariff increase is expanding to a broader audience, and could affect every day goods like clothing, electronics, and toys.
All this could cost the average American family of four an additional $500 a year on Chinese goods.
"American consumers are already paying they just don't really know it, it's kind of a stealth tax. But it's going to become a very obvious tax not too far from now if this continues," said Mark Zandi, Chief Economist at Moody's Analytics.
Some U.S. senators, like Sen. Rand Paul, are now calling for an end to the trade war before American consumers have to pay up.
"[I've been telling them to] get this done, because the longer we're involved in a tariff battle or a trade war, the better chance is that we could actually enter into a recession because of it," Paul said.
However, President Trump and his advisers are standing strong on the matter, reassuring the American people that trade talks will resume soon and a deal will be reached.
"We don't think the Chinese have come far enough. How long's it take? I don't know. Could be a couple of months or thereabouts," said Chief Economic Adviser Larry Kudlow.
These new tariffs will hit the Chinese economy hard, too, mostly by way of electronic goods.
American consumers and business owners could start feeling the effects of these tariffs as soon as this week.