Sunday, September 29, 2019

Consumers are really starting to worry about the trade war

The trade war between the U.S and China has been cited as a negative factor weighing on the economy according to a study done at the University of Michigan. “Trade policies have had the greatest negative impact on consumers, with a near record one-third of all consumers negatively mentioning trade policies in September when asked to explain in their own words the factors underlying their economic expectations.” Since the U.S and China are set to meet again on October 10th to talk about the trade war, hopefully this will settle some of the uncertainty that consumers are having. Will this trade war ever come to an end and how will it continue to affect our economy?
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4 comments:

  1. AnonymousSeptember 29, 2019 at 10:20 PM

    I found an article posted by the New York Post that says the trade war is making it more expensive to raise a child. It is already expensive enough to raise a child as is. US tariffs on made-in-China goods are weighing on the makers of a range of goods. Prices for "kiddie gear", cribs, toys, and other products are all increasing in price. New parents are taking a serious hit when it comes to the tariffs because many children's products are made in China.

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    1. AnonymousSeptember 29, 2019 at 10:37 PM

      Interesting aspect. I wouldn't have thought of such a specific impact that general trade policies have on consumers. With world trade policies having such a macroeconomic focus, it's easy to overlook the major effects they have on microeconomic activity.

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    2. AnonymousSeptember 30, 2019 at 10:59 AM

      tariffs increase the price level on all imported goods that we purchase from china. This means that many intermediary goods that domestic producers use are more expensive to create the final good. This is eventually passed on to the consumer in the form of higher prices.

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  2. AnonymousSeptember 30, 2019 at 11:07 AM

    I agree with Nick. It is so easy to overlook this major affects they have on microeconomic activity. I don't think the war will come to and end...this might be something that will drag out for awhile because it will be difficult for both countries to find middle ground.

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