What Happens When Tariffs Hit Home?

ldquo;Tariffs on goods traded between the U.S. and China have already increased in several stages since early 2018,rdquo; said CNBC. ldquo;Now, President Donald Trump has added a 25 tariff up from his original proposal of 10 on another 200 billion worth of Chinese imports, and China hit back with 5 to 10 percent duties on another 60 billion worth of U.S. goods.rdquo;

Experts say we could be seeing higher prices as a result of this escalation as early as this summer, and that has economists yelling, ldquo;Buy, buy, buy nowrdquo; in order to avoid what a report from Oxford Economics estimates will be an 800 hit to every U.S. household.

There is some question as to how the tariffs will play outmdash;after all, Trump said that China will suffer most of the economic impact. ldquo;Yet experts say the burden will land squa>

So what can you do? Ramp up future spending now, if possible.

ldquo;To get ahead of the next waves of tariffs, University of California, Davis, professor of economics and specialist in international trade Katheryn Russ recommends buying some items now, if possible mdash; such as backpacks and other back-to-school supplies mdash; rather than holding off until later in the year,rdquo; said CNBC. Ditto for things like iPhones; ldquo;The price for an iPhone XS would rise to 1,142, up from 1,000, if the White House implements a 25 tariff on the rest of China imports, J.P. Morgan said in a note to clients.rdquo; Expect a ldquo;similar impact on TVs and everyday purchases, ldquo;where consumers will be harder hit, such as frozen food and paper goods, including diapers and paper towels.rdquo;

Phil Crone, Executive Officer of the Dallas Builders Association, warns of the effect on the housing market. ldquo;From tile to countertops, laminates, lighting, and furnishing, about 450 products commonly found in new homes and remodeling projects are seeing tariffs rise from 10 percent to 25 percent,rdquo; he said. ldquo;According to the National Association of Home Builders NAHB, homeowners and homebuilders nationwide will be paying an additional 2.5 billion.rdquo;