What are tariffs?


As the trade war with China escalates, tariffs on Chinese goods are increasing and expanding in scope. Experts say that Americans will see jumps in price tags they’ve grown accustomed to, some bigger than others. (A tariff, as defined by Investor’s Business Daily, is a tax on imports, the purpose of which is to protect domestic production and jobs.)

President Trump’s policy has put a 25 percent tax on $250 billion worth of consumer goods that China exports to the United States. And he’s poised to impose tariffs on the remaining $300 billion of goods imported from China. “That would mean almost all imports from China would be subject to a 25 percent import tax,” writes Reuters.

The stated goal of these tariffs is to have a positive impact on America’s trade deficit with China (the BBC defines a trade deficit as the difference between how much your country buys from another country vs. how much you sell to that country.) As of last year, the U.S. trade deficit with China was approximately $375 billion.

While the long-term result of these tariffs is unknown, in the short term, consumers will undoubtedly see a rise in the cost of a host of goods. ““The supply chain will try to absorb as much of the blow as they can, then they will move those costs forward to consumers,” David French, senior vice president of government relations at the National Retail Federation told CNBC.

Here is a look at some items you can expect to have increased price tags, and some strategies to get them at the best price possible.

The post 16 Things That Are About to Get Way More Expensive appeared first on Reader's Digest.

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