The trade war between the U.S. and China is getting worse, and it’s starting to hurt American families. President Donald Trump recently announced that tariffs—extra taxes on imports—on Chinese goods will jump from already high rates to an astonishing 125%. This means that American businesses and shoppers will feel the pain in their pockets.
For example, a small business owner used to pay $26,000 in tariffs on his toys imported from China. With the new rate, his bill skyrocketed to an incredible $346,000—a 1,200% increase! A Fox News anchor pointed out that while many think China pays these tariffs, the reality is that it’s Americans who end up footing the bill.
Interestingly, Trump has also paused tariff rates for countries that aren’t retaliating against the U.S. This is a rare move away from his usual tough approach. Tariff rates for these other countries will drop back to a standard 10%. However, Trump shows no sign of backing down on China, as they just retaliated with 84% tariffs on U.S. goods.
China has been trying to team up with other countries against the U.S. and has refused to talk further, promising to “fight to the end” in this trade battle. It looks like the tensions are only going to continue growing.
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