On Black Friday and Cyber Monday, shoppers will be out in force looking for holiday sales. But amid the shopping frenzy there’s a rotten deal: the ongoing trade war.
To push back on China’s unfair trade policies, President Trump initially slapped tariffs on $50 billion worth of Chinese goods. Then the White House announced additional 10 percent tariffs on another $200 billion worth of goods that took effect on Sept. 24. Those tariffs are set to increase to 25 percent just after the holiday season.
Now, with the prospect of a deal with China slipping after a contentious summit meeting last week, the U.S. is poised to put tariffs on an additional $267 billion of Chinese imports in early 2019.
If the trade war runs its course, shoppers can expect higher prices on televisions, sweaters, Christmas ornaments, and just about every other holiday favorite in the new year.
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With the worst of tariffs yet to come, the choices for consumers and retailers are only going to get worse. That’s in part by design: The tariffs already imposed affect a specific list of items that exclude popular purchases like Apple Watches and necessities like highchairs. The third round, placing tariffs on pretty much everything from China, would likely have far fewer exemptions.
For now, though, the approved exemptions have clear winners picked by government policy. Apple, for example, successfully lobbied to keep its most popular products like Air Pods and Apple Watches tariff-free. Other large companies have been able to warehouse inventories, stocking up to avoid paying premiums once tariffs take effect.
Smaller stores without extra money to spend on lobbying or space to spare are forced to pay the premiums, jeopardizing their business.
For consumers and the United States, the result is a distorted market and a lose-lose situation. Higher prices, lower company earnings, and state-picked winners translate into a bad deal for the economy.
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The worst deal on Black Friday https://t.co/zqalcBpBPz
— Washington Examiner (@dcexaminer) November 23, 2018
Trump fans can’t understand that their hero’s temper tantrums are going to cost them big time sooner or later. One of them told me he doesn’t care because he doesn’t shop at Walmart. GRRRRRRR!!!!!
In the meantime, where are all those American jobs we were going to get as a result of these tarriffs?
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