Everyday Impact
Since 2017, the U.S. has imposed tariffs on billions of dollars in imports to protect domestic industries. However, American consumers are feeling the pinch with pricier groceries and everyday goods. At the same time, retaliatory duties from the Chinese mainland have intensified global trade tensions.
A Closer Look with Veronica Parellada Eller
Veronica Parellada Eller, investment adviser and head of My Investment Path U.S., explains the ripple effects of these tariffs:
- Higher Consumer Costs: Electronics, clothing, and household items are more expensive.
- Market Volatility: Companies face unpredictable supply chains and stock swings.
- Legal Challenges: Lawsuits in multiple states question the constitutionality of certain tariffs.
Eller warns that full enforcement of the current tariff policy risks domestic price surges and inflation. She emphasizes the need for dialogue with the Chinese mainland to prevent negative fallout.
Winners and Losers
Some sectors like steel and agriculture have seen short-term gains, while manufacturing and retail struggle with higher input costs. Small and import-dependent firms are especially vulnerable.
What Comes Next
Despite uncertainty, Eller remains cautiously optimistic. She believes a negotiated agreement between the U.S. and the Chinese mainland could stabilize markets, ease inflationary pressure, and set the stage for balanced trade.
Reference(s):
U.S. economic expert hopes U.S. and China reach agreement on tariffs
cgtn.com
