[ad_1]
Trump tweeted in June that "trade must be fair and must not be one way" and "in the end, it will be equal". The president's goal is to reduce the trade deficit with tariffs, or to "level the playing field," as Hogan says.
The trade deficit is essentially the difference between the volume of US imports, in terms of goods and services, and what it exports. According to the US Department of Commerce, it amounts to about $ 50 billion, but China's trade deficit is $ 375 billion. Trump claims that the gap is a sign of economic weakness, even though not all experts agree, and some questions, regardless of whether tariffs are an effective answer.
In any case, some Americans can feel their effects quickly. And it's not just the tariffs on imports that can hurt. Last week, Beijing announced its intention to impose retaliatory rights on 5,000 US goods for a total of $ 60 billion. Rates imposed by other countries can reduce the number of sales for US companies and result in job losses.
"Chinese tariffs on US exports have a more concentrated impact, mainly affecting the income and output of US farmers and manufacturers," says McBride.
Thus, while the potential effects of this conflict may not be entirely clear, its more immediate impact is of concern. "Better trade deals may be a long-term result," says McBride, "but they will not be painless in the meantime."
Do not miss:
29 year old man bought $ 60,000 Tesla with a credit card and earned about $ 5,000 in rewards
Do you like this story? Subscribe to CNBC Make It on YouTube!
