{"id":616,"date":"2019-09-20T19:40:26","date_gmt":"2019-09-20T19:40:26","guid":{"rendered":"http:\/\/www.unitedfinances.com\/blog\/?p=616"},"modified":"2019-09-20T19:40:26","modified_gmt":"2019-09-20T19:40:26","slug":"how-the-us-china-trade-war-could-cost-the-average-american-household-big-bucks","status":"publish","type":"post","link":"https:\/\/www.unitedfinances.com\/blog\/how-the-us-china-trade-war-could-cost-the-average-american-household-big-bucks\/","title":{"rendered":"How the US-China Trade War Could Cost the Average American Household Big Bucks"},"content":{"rendered":"

<\/span><\/p>\n

It certainly isn\u2019t news that Trump is at war with China. While this war may be a financial one, <\/span>the impact on US citizens will soon be quite real<\/strong>. It could literally end up costing our way of living.<\/span><\/p>\n

Many in the US are already living paycheck to paycheck, and numerous financial <\/span>reports show that just one unexpected bill of $500 could put many households over their financial means<\/strong> and into serious financial situations. Around <\/span>60% of the country<\/span><\/a> is just a $500 bill away from difficulties.<\/span><\/p>\n

While the trade war may not be seen to affect Americans, in reality, the impact is going to be quite serious. According to The Washington Post, <\/span>this cost is likely to be at least $1000 per household on average<\/strong>, possibly as high as $1500. Can you afford an extra $1500 in expenses?<\/span><\/p>\n

In this article, we will look at why this is happening, how it is happening, and if anything can or will be done about it.<\/span><\/p>\n

The US-China Trade War – What Is Happening?<\/span><\/h2>\n

The match that started this trade war fire was lit by tweets from Trump before he even became the president of the USA. In the early days, he was quoted as saying \u201cWe can\u2019t continue to allow China to rape our country and that\u2019s what they\u2019re doing. It\u2019s the greatest theft in the history of the world\u201d. This is a clear message about Trump\u2019s stance on the China trade agreement situation.<\/span><\/p>\n

Since then, numerous talks have been held, and some policies put into place. However, <\/span>it has been an almost tit-for-tat routine between the two countries and their leaders<\/strong>. As one imposes tariffs and extra legislation, so then does the other impose equal or higher tariffs.<\/span><\/p>\n

The US hits China with 10-25% tariffs on imports from China, and then China hits the USA with the same kind of restrictions on their exports to China. These economic powerhouses are <\/span>fighting one of the biggest public financial wars seen in a long time<\/strong>. Each trying to force the other to back down. Which, unfortunately, this doesn\u2019t seem to be likely to happen anytime soon.<\/span><\/p>\n

This situation has now escalated to a point where the US and China are blocking entities from trading at all, and that the <\/span>10-25% tariffs are being levied on hundreds of billions of US dollars worth of imports in both directions<\/strong>. Just to put that into a more relatable form, 25% of only 1 billion US dollars of trade is a tariff of $250,000,000 USD. Now, multiply that by hundreds and you can quickly see why this situation is so serious and is already very expensive.<\/span><\/p>\n

How Much is Being Affected By Tariffs?<\/span><\/h2>\n

At the time of writing, tariffs are already affecting hundreds of billions of exports and imports between the USA and China. Between them, it is <\/span>heading towards half a trillion US dollars<\/strong> of trade being affected by the tariffs levied. At 10-25%, it is a very serious issue.<\/span><\/p>\n