The trade war has begun and while Donald Trump claims this will help Americans, economists the world over agree: These new taxes on goods will likely siphon thousands of dollars out of your wallet every year. Veuer’s Tony Spitz has the details.
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00:00The trade war has begun, and while President Trump claims this will help Americans,
00:04economists the world over agree these new taxes on goods will likely siphon thousands of dollars
00:09out of your wallet every year. Axios reports that economists say the next few days will be
00:13really eye-opening. With regards to the 25% tariff now placed on goods coming from Mexico
00:18and Canada and the 10% tariff on goods coming from China, this is Clark Packard,
00:23a research fellow at the Cato Institute. The United States imports about 1.5 trillion
00:29worth of products from these three countries. There are three largest trading partners,
00:34and the U.S. also exports about a trillion dollars every year to these countries. And so,
00:41American consumers would face higher prices from tariffs, but also if you're an exporter,
00:46if you're a small business that sends products abroad, you're going to face foreign retaliation.
00:53So now the question remains, who will feel these rising costs? Will the importers and
00:57sellers of these goods absorb them, or will the customers? If the last couple of years are any
01:02indicator with rising inflation being passed directly onto the consumer, that may likely
01:06happen again. But what if Americans just say no and refuse to buy items like avocados with an
01:11even steeper price tag? Well, that's still unclear. What is clear is that economists predict that
01:15these rising costs will effectively decrease American buying power by around 1% or $1,000
01:21a year on average.