The trade war has barely just begun, and yet significant ripple effects are already being felt all across the U.S. economy. Once thriving businesses are on the verge of failure, workers are being laid off, and some sectors of the economy are witnessing enormous price hikes. Right now the mainstream media is absolutely fixated on the drama surrounding the recently concluded Trump-Putin summit meeting, but the consequences of this trade war will ultimately be far more important for the lives of most ordinary Americans. As more tariffs continue to be implemented, this will perhaps be the biggest disruption to the global economic system that we have seen in decades. Perhaps you have not been affected personally yet, but for many Americans this trade war has changed everything. For example, just consider the plight of soybean farmer Tim Bardole…
The U.S. is China’s second-biggest source of soybeans at 34% of the imports, after Brazil, which ships 53%. The staple is used to make cooking oil and seasoning, and soybean meal is found in pig feed.
Now the tariffs have taken the bottom out of U.S. soybean prices, delivering a gut punch to farmers like Tim Bardole. He was already $100,000 in the red last year due to a yearslong slump in cereal prices, and the current predicament has driven him into a corner.
“I’m not sure if I can get a loan from the bank to finance our next year’s crop,” said Bardole.
If this trade war had not happened, perhaps Bardole would have been able to eventually get out of debt. But now he is facing financial ruin and the potential loss of his entire farm.
Switching gears, U.S. consumers will soon discover that common electronics such as phones and computers cost a lot more. The following comes from CBS News…
Buyers in the U.S. will soon see price hikes on computers, phones, thermostats and “everyday items,” according to the Information Technology Industry Council, a group that represents tech companies.
Hundreds of Chinese components that the Trump administration penalized are used to make everything from LEDs to sensors to printer and scanner components. When manufacturers pay more for their parts, the costs are typically passed on to consumers, the ITI said.
Are you ready to pay 50 dollars for your next phone to support this trade war?
Maybe.
50 dollars is ultimately not that big of a deal.
But what about paying $9,000 more for your next house?…
