Tensions remain high as the trade war between the US and China continues.
President Trump is expected to meet with the Chinese president, but for now, prices seem to be going up.
We’ve seen both countries raise tariffs.
A tariff is basically a tax on an imported or exported good.
Several stores, including Walmart and Nike, say prices are going up as a result, and even small businesses in the East say they’re feeling the impact.
Randy Walters, the president of Farmville Furniture Company said, “We had two price increases this morning, we are getting price increases every day.”
His store sells the US made and China made items – it’s about 50/50 and, with his prices going up — he’s being forced to charge more.
Walters’ prices are going up because of tariffs imposed by China after the US slapped additional tariffs on them.
“It is almost uniform among economists that these types of trade restrictions are hideous, it’s not going to bring a huge financial crisis but it’s just not good”, ECU economics professor Philip Rothman says, he continued to say we, the consumers are the ones who suffer over the back and forth.
Rothman added, “Something that cost $3, maybe it cost $3.75 now and you buy it often and it’s that way for a lot of goods, so in the long run you could be spending hundreds more over time.”
And Walters says — it gives us something to think about
Walters said, “We sent all this stuff overseas. It’s out fault but we can, if we are smart, we can bring a lot of production back to the US and keep prices good for people.”
There is no word yet on when the trade war will end but Walters says, they’ve seen just about everything in the over 100 years his store has been in downtown Farmville and he’s optimistic.
Walters said, “This will make a difference on price but I don’t think it will just price things out of the reach of the public.”
Something to keep in mind as well, this trade war impacts businesses that only sell things made in the US too.
Walters says when making furniture as an example, even though it was made here, a lot of small things like springs, trim, nails, might be from China so there are still tariffs imposed.