GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’re free to read more about oureditorial guidelinesand our products and servicesreview methodology.
Whether it will stay there is anyones guess.
Higher Prices on Consumer Goods
Tariffs are taxes imposed on companies that import goods from another country.
But importers dont just eat the extra costs.
If importers end up passing on those costs,consumers could be affected.
Americans will have to pay the higher price.
And make no mistake: The U.S. imports a huge amount of consumer goods from China.
TheCensus Bureaureported that around $439 billion worth of goods were imported last year.
Nor does the cost impact only items assembled in China.
Broader Inflation
Unfortunately,inflation doesnt stay isolated.
It can to spill over into other goods and services, even those not directly hit by tariffs.
Consider Australian wine as a case study.
Any buyers who enjoyed Australian shiraz suffered as casualties of the trade war.
Hughes added that every single economist surveyed sees U.S. tariff policy as cranking up recession risk.
Fully 69% of respondents think that the near-term recession risk is significant, he said.
Prolonged Stagflation
Stagflation refers to a period of stagnant economic growth coupled with high inflation.
That makes it difficult for central banks to fight because each problem requires an opposite solution.
They fight inflation by raising interest rates.
Stagflation leaves them with no easy fix.
More From GOBankingRates
Share This Article:
