Last week, President Donald Trump approved several new tariffs on imports of solar products and washing machines. Supporters of the move are celebrating, arguing that American jobs will be created – a Chinese company is opening a new solar factory in the United States. Opponents warn, however, that prices will rise and jobs will inevitably be lost – like previous tariffs have shown.
Moving forward, consumers can expect to see a big jump in the price of a washing machine.
According to Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics, the price-tag on your typical washing machine will be 15 percent higher soon.
From Cleveland.com:
Hufbauer said that was based on reviews of price hikes following the imposition of tariffs on a number of products over the years and, more recently, on Chinese tires. Economic modeling shows domestic wholesale prices of competing goods rises by a fraction of the new tariff — roughly 30 percent to 70 percent of the new tariff, he said.
When prices go higher, consumers slow down their spending habits, which helps eliminate jobs.
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