Tariffs Still Loom Large—3 Ways They Could Affect Your Budget | Global News Avenue

President Donald Trump’s tariffs may increase consumer costs and unemployment rates through the tariffs of revenge.

Trump strongly added a one 10 % tariffs imported from China Early morning on Tuesday, a few hours later, China Revenge Its tariffs on the United States. Imported 25 % tariff Mexico and Canada It has been postponed for a month, but it is still imminent.

In fact, which tariffs will be levied and the possible revenge will still be uncertain. This makes it difficult for economists to predict potential economic impact. However, economists say that tariffs have several types of personal financial conditions.

Your electronic products and other products may cost more

Economists say that tariffs will force many companies to increase prices to make up for higher import costs. The trade war may mean American consumers see the increase in costs In grocery stores, car dealers and air pumps, as well as other locations.

Economists at Yale University said that once it is implemented, tariffs may increase overall living costs, which can be measured by 0.7 % by personal consumption expenditure, causing an average of $ 1,250 a year on average.

As the tariffs of Canada and Mexico are currently suspended, your grocery bills will increase less opportunities. However, toys and electronic devices are caught by Chinese tariffs. Economists say that any price change may take several months to appear on the register.

Patti Brennan, CFP and CEO of Wealth Management, said: “Don’t make huge changes in the purchase behavior; don’t change everything.”

Your job may have risks

The trade war can also increase the unemployment rate, because the company must balance the cost of imports and the cost of employees.

“Companies buying these products … if they can choose to obtain materials instead of the people, then they will need materials (to maintain production).”

The Canadian Chamber of Commerce estimates that 1.4 million US jobs are related to the export of Canada. In addition, the US State Department estimates that as of 2019, the US exports to Mexico have supported about 1.1 million employment opportunities. The U.S. World Trade Council estimates that another nearly one million U.S. work is related to China exports.

If the tariffs are borne, the import and export of these work to handle some of the largest trading partners in the United States may be in danger. The unemployment rate in the United States this year may increase from the initial 4.1 % estimation value to 4.5 %, because tariffs predict the Ryan Sweet of Oxford Economics.

Lending money will remain expensive

Although many consumers want the Federal Reserve to reduce their influence interest rates, tariffs may get any relief.

Fed officials have entered the “waiting” model Pay attention to any economy The impact of tariffs and other tariffs Fiscal policy Change. At the last meeting, they held Feed capital interest rateThis affects the borrowing cost of all factors from mortgage to credit cards.

Swate wrote that tariffs may cause Fed officials to reduce interest rates to promote the economy, and prevent unemployment or increase interest rates to slow the economy and calm down inflation.

Brunnan said: “(Americans) need to support their emergency funds and obtain their net worth credit quota to ensure that if they do not have it, they have some support and wait and see.” “If so, I can see it. If inflation starts collusion, the Fed will not hesitate to increase interest rates again. ”