The Trade War Could Soon Hit Your Wallet HARD

by | Jul 12, 2018 | Headline News | 53 comments

Do you LOVE America?


    As the trade war between the United States and China continues to ramp up, it gets closer to affecting consumers.  If it continues, the trade war could have a very negative impact on disposable income – which is horrible news if you’re already living paycheck to paycheck.

    American consumers can expect higher prices and diminished economic opportunity if President Donald Trump follows through on his threat of levying 10 percent tariffs on an additional $200 billion in Chinese goods and China responds in kind, as it has vowed to do, economic experts say.  Of course, SHTFPlan warned of this before Trump flung the US into a full-blown trade war.  The people who will suffer the most are those at the bottom, as in any financial crisis or trade war.

    While the tit-for-tat tariffs could hurt both economies, the damage to China’s economy caused by the US’s Section 301 tariffs will “pale in comparison to the damage done to the US economy via China’s retaliations,” reported SHTFPlan back in April. Tariffs imposed on Chinese goods aren’t actually paid for by Chinese companies, as the American government would have you believe.  China will simply jack up the prices of their goods and the cost will be effectively passed onto the American consumer in the form of higher prices. This is simply economics 101, something that most Americans fail to comprehend in even the simplest terms.

    “Tariffs are beginning to take a toll on American businesses, workers, farmers, and consumers as overseas markets close to American-made products and prices increase here at home,” said U.S. Chamber of Commerce President and CEO Thomas J. Donohue in a statement according to NBC News. “Tariffs are simply taxes that raise prices for everyone. Tariffs that beget tariffs that beget more tariffs only lead to a trade war that will cost American jobs and economic growth.”

    Experts say prices at the supermarket, as well as at clothing and electronic stores that carry any of the targeted goods, will rise as soon as the retailers decide to pass the increased costs down to consumers. Shoppers may gradually see prices rise everywhere as stores try to spread out the damage of the cost of tariffs. The impact on each price tag may ultimately be small, but it will all add up any Americans will be able to afford less than they did before the trade war began.

    “Few people will notice an increase in the price of goods on the order of a tenth of a cent,” Sharon Traiberman, assistant professor of economics at NYU who researches international trade and labor economics, said in an email. “So it’s not about everyone feeling worse off, it’s that despite the small impact per person, this is very costly in the aggregate.”  Traiberman failed to mention the financial burden this places on those who currently have only a small amount of disposable income. Sure, the effect individually may be small, but it’ll be felt.  In fact, one in five Americans don’t even have enough money to put food on the table, so minimizing the impact on an individual is quite pretentious and rather short-sighted.

    And the news is still bad for the economy should businesses decide to absorb the cost of compliance on their own. If businesses try to cover some of the costs themselves, the effect is less visible but potentially even more damaging. “That’s less money to hire workers, less money to invest in new facilities,” said Scott Lincicome, a trade lawyer and adjunct scholar with the Cato Institute.

    Although Trump says he’s protecting and strengthing the U.S. economy, history shows he’s wrong on this one. The Smoot-Hawley Tariff Act of 1930 raised protectionist tariffs against over 900 goods in order to help alleviate the pain of the Depression. U.S. industries enjoyed a short-term bump, but the Gross Domestic Product by 1933 had fallen to $56 billion, down nearly half from $103 billion in 1929.

    Prepare for potential financial stress by paying off debts.  One of the best things you can do to prepare yourself for higher prices and increased interest rates is to increase your disposable income by eliminating credit payments.  This will also save you money once interest rates go higher.  Plus, it’s much more difficult for your property to be repossessed if you own it outright and are not making payments on it.


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      1. More Walmart employees laid off!

        • “While the tit-for-tat tariffs could hurt both economies, the damage to China’s economy caused by the US’s Section 301 tariffs will “pale in comparison to the damage done to the US economy via China’s retaliations,”

          Not true.

          Yes, American wallets will get hit, and hard. But the damage to China’s Exporters will be many, many times greater, destroying the Chinese Stock & Housing Markets which are leveraged to the extreme. Once that downward spiral begins …. social unrest will skyrocket and the CCP is at risk, economically & politically.

          Chinese leadership understands this, but the longer they cling to the export model of economics to employ the Chinese population the more painful it will be when the bottom falls out.

          China has been giving lip service to US demands to “internalize” their economy for decades and shift away from the export model but Chinese leadership has not moved in this direction because it would slash employment and cut off the wealth pouring into China from both the USA & Europe.

          The JIG is up.

          The reality is that America cannot afford to allow the disparity institutionalized by the NWO to continue no matter how hard it hurts if America is to be anything except a Third World Nation.TRUMP will not allow that.

          The annual US budget deficit is about $1.3 billion. China is about $400 billion of that number, Europe $160 billion Mexico $125 billion, Canada $25 billion, and Illegals $500 billion (according to a Harvard economist).

          It would be easy for the USA to become solvent again if these outflows were eliminated. Addressing these economic issues are the essence of TRUMP’S PLAN. 🙂

      2. Pretty much BS. Prior to Trump and the Tariff wars, Obama and the Clintons raided the US tax base far more than any of Trumps actions will do. Lets face it, if the tax cut we received equals the cost increases of junk from China, then we are still all better off than giving the same amount of money to the Democrats to spend on themselves.

        • Just buy American.

          • Tariffs raise prices immediately. Bob has to pay more for stuff.
            So the article is correct to that extent.

            But next month, Alice sees that she can start that business making stuff because now that the prices are higher, she can compete with China. So she hires Bill, who was unemployed, but can now afford to pay for stuff because he’s working.

            Bob is a little worse off, but Bill and Alice are better off.
            What if Alice and Bob are married and Bill is their son? Is the family better off now?

            • ^
              / \


        • Mr West GTFOOH, Yeah Obama and the Clinton’s are thieves and thugs who raided the till, BUT Trump is POTUS now, he’s the one in power NOT them, and however you want to spin it, he’s making it worse. Much worse.

        • Well, we as Americans can take some pain now, to lower our trade surplus with China down to zero, or we can SELL OUT OUR COUNTRY for cheap shit sold at WalMart. I don’t know about other Americans, but I’ll take pain in my wallet now, to save my kids, and grand kids country from being taken over China later!!

      3. So how do you reduce the trade deficits with other countries if they won’t work with you to equalize trade. Tariffs are the only way to equalize and get people to come to the table. No tariffs then the U.S. dies from deficits.

        • The biggest problem as i see it is the USA doesnt really build much anymore, so its going to take a while to straighten out, but yes, those billions leaving every year in the trade deficit are gone for good pretty much, tough situation for sure, most shop tools and such are made overseas, so wheres the alternatives? So far table saws, jointers, planers, sanders, lathes, mills etc etc, all the prices just made a huge jump, and not only China made but European made as well. Its going to be interesting, unfortunately it will strangle the market and put companies like Jet, Grizzly, Powermatic and a few others out of business eventually, or at the very least severely reduce their inventories and viability.

      4. If products are about to become more expensive, would it not make sense to buy those necessities now instead of paying of debt if that debt is a fixed interest loan?

        Children’s feet keep growing. I would buy them shoes, now. It would be a shame to see kids running around barefoot.


        • Buy products made in the USA.

          SAS = San Antonio Shoemakers

          Does SAS make shoes for kids? If, not, which American Shoe Company does?


          • SAS shoes are great! The only problem is that they last so long a person does not have to buy shoes very often. I have a pair that I have worn nearly every day (except in the summer) for at least five years and they are still going strong.

          • new balance

      5. I still buy preps regardless even when there’s NO price increase. I don’t let inflation or anything else prevent me from prepping. Since I don’t bother with credit I’ve always got a certain amount of ‘disposable’ income for preps.

      6. Was looking at buying a lathe from Grizzly, they actually list the tarrif charge add on to the price, its substantial, the charge on the piece of machinery i was looking at was over 1k on a machine that already cost almost 5k to buy, i dont see how this cant end badly.

        • It’s a racket for sure. I guees that machine was in stock? Which means it’s already been bought and paid for, and already here in the states so the tariffs shouldn’t even apply. Be interesting to see how long it’s been in inventory. I understand they’re in business to make money, but come on it’s not like Uncle Sugar is sending them a bill to pay back-owed tarrifs.

        • Nail,
          There is a lathe for sale in Kihei.
          ht tps://

          Saves you outrageous shipping charges.

        • I have a old American made south bend lathe. And its still works perfect. Cost me $400. Of course its not digital but it likely turns out better work than a new grizzly. The point is we are not forced to purchase manufactured goods. We can buy used and repair and rebuild them. My farm tractors where made in the 1940,s and every part is available new if I want to buy it. Its a poor lame lie trying to claim that the Trump tariff policy is wrong. We should of never let the trade imbalance happen. We should have done everything possible to kept out manufacturing here. Those traitors who left shouldn’t get to import scott free. Make them pay or bring their manufacturing back to the USA. Every dollar that leaves the country is a exidious of wealth gone forever. That dollar and the taxes it generates is no longer in the USA.

          • I agree with ya OG
            Should have never been allowed to happen, the reality is its going to hurt a bit to fix it, but will the people have the balls to suck it up and deal or will they just democrat out and go the easy route.
            Im not a full time machinist, so was looking to buy the gunsmithing lathe with the vertical milling attachment, can do about anything i would ever want, plus can thread barrels or mill sight dovetails, stuff its awful hard to get done these days

      7. So,buy less stuff,better quality.

        Nail,feel you could get a much better deal on a decent lathe used anyhow off of CL what have you.Thier mini mill was nice once got rid of the “plastic gears” and replaced with belt drive,did though buy it used.

        B,as for shoes,you realize the SAS(Special Air Service)are from GB,right?!I didn’t know they made shoes but they do would definitely buy a pair!

        • WD,

          I advised Nail of a locally available Lathe.

          A quick search of the WEB show a lot of American produced footwear.
          They are NOT cheap.

          • Rellik,usually pay north of 200 easy for any boots I buy,and well worth it.I realize kids growing like weeds doesn’t make sense to pay huge money on footwear they quickly grow out of.That said,plenty of friends with kids and perfectly good footwear they have grown out of,worth a shot.

            As for lathe not sure wood/metal speeds/set up,length of bed he wants ect.,needs it digitally set up for a lot of production repeat,even then,used the way to go usually unless you just need new machine write offs.

            • Thats peanuts,
              Been shelling out close to 300 a pair for boots, going to custom mountain boots because of fit and foot issues and am looking at around 1300 a pair,,, its worth every penny to not have yer feet be the first thing on your mind at the end of the day,,,,

      8. Thing is, paying off debt and not using credit may help you personally in the short term but in aggregate it only helps crash the economy into the next recession or depression. I have no debt, but I have also missed most of the fruits of the last ten years by listening to the “sky is falling” and not participating in the markets and instead investing in precious. Pffft.

        ALL credit (money, if you will) is created as debt with usury attached. This creation of debt is the very definition of “growth”. The debt MUST continually grow to pay back the principal AND the compound usury.

        If all the debt was paid back there would be no money other than some printed FRNs floating around, since the whole monetary system is based on…and in fact…is debt.

        When this debt based monetary system stops growing and creating more debt, it will crash. It seems we are soon reaching this point since world wide debt is three times larger than worldwide GDP and can NEVER be paid off.

        The moneychangers have created and refined this system over thousands of years to keep the world enslaved to their usury that gives them a free ride on money they can create from thin air. It has accelerated with the advent of the oil age (free slave labor) and the uncoupling with precious.

        When the energy system cannot keep providing surplus energy to back up growth (debt creation), the system will collapse. Worldwide per capita net energy is falling. It’s coming soon (It always is).


      9. Another parroting of the same old bullsh*t argument!!
        What about the other part of “Economics 101” where consumers simply stop buying crap they don’t need because its gotten too expensive! You can only sell a product for what the market will bare. I sell my American Manufactured products cheaper than I should because of Cheating China using Slave Labor, Manipulating their currency, and Guaranteeing a profit paid by the State to Chinese Manufacturers. these Legal Tarriffs will allow for a larger market share for my American Manufacturing Company and possibly a price increase to share with my employees.
        What about the 56 million American Manufacturing jobs which can return and the purchasing power those jobs carry?
        We cant all sit on our butts with a keyboard and Pine opinions which we read somewhere for $$
        You can spell, but you have as much value as a poet to those of us who pick up a tool and produce something usefull!
        The Stock market crash hit in October of 1929 and again in August of 1932. It didn’t turn upward till 1933. Your citing of gross domestic product is disengenuous!

      10. Believe what you want, this is a direct hit from Trump’s latest bullshit with the Trade Wars.

        And as far as “Buy USA”, most products are manufactured overseas. Even Ivanka’a clothing line, shoes, purses and accessories are made in China. All of her trademarks are filed in China. If the FLOTUS with her one product line & also the POTUS with his MAGA and other merchandise, and the First Daughter as well, are all producing overseas, sure as hell everyone else is too.

        Pretty hard to “Buy USA” when the President himself (and his family) don’t practice what he preaches–and when most products in general are made overseas, usually in China.

        Another one of Trump’s empty words, broken promises and contradictions. It’s all lip service. Meet your new boss, same as your old boss.

        What about “The first thing I am going to do is lock her up.” And how about the border wall? and the first phase of the new infrastructure? and not a word about the Damns that are about to give way and wipe out entire cities killing millions of people? Still waiting.

      11. I am fundamentally opposed to tariffs. It is a tax collected by customs and kept by the federal government. It is basically a Federal sales tax on specific imports. This recent tariff is taxation without representation as
        “The president can act without Congress’ approval only to curb imports that threaten national security.”
        Recent tariffs supposedly are imposed for that reason. Normally Congress has to authorize tariffs and there a LOT of them.
        Most people agree that Smoot-Hawley Tariff caused the Great depression of the 1930’s to be far worse than it should have been.
        Short term, prices may go up, but people will quit buying, and then prices will go down quickly.
        I don’t foresee a lot of inflation on the basics as we can adequately provide them for our LEGAL population.
        Get out of Debt and get out of the City.

        • Tariffs are what the US ran on before the income tax. Of course prices will rise. People will find out that being poor is not as much fun when you can’t buy Chinese crap made by slave labor. That’s just one of the bad things that Nixon was responsible for. People will have to get used to paying the same labor costs for products that they expect to earn themselves at jobs.

          Tariffs should cause American-made products to be more competitive and cause more factories to reopen.

          Maybe if we charge enough tariffs, we can repeal the income tax. That’s a nice dream.

        • I’d like to remind people here that the constitution gave tariffs and trade as the only taxes to fund the federal gov.
          if we don’t start making stuff here again we will not survive.
          Tariffs are the reason Toyota, Nissan and Honda build cars here.

          maybe China will build their junk in California now since they own a lot of the state anyways.

          • Arch and citizen,
            Article 1 sect 8.
            Read closely, “the Congress shall have power”.
            You are both right in that the Feds ran off
            excise taxes, and import taxes. The US Coast Guard
            started out as the Revenue cutter service, to collect
            money from ships bringing in “stuff”.
            My main complaint is that the Congress gave up their rights
            to the executive branch, and in todays world where the 16th
            amendment allows the Feds to rob us of our wealth, this is
            just another BS tax we can’t vote on.

      12. China will fall harder… many mouths to feed.
        Have you seen the videos of China’s building falling down like flies… house of cards.

      13. So do nothing and you run an obscene trade deficit and your economy collapses.

        Do something and…

        … k.

        I mean… it’s going to have to hurt one way or another…

      14. Tariffs that beget tariffs that beget more tariffs only lead to a trade war that will cost American jobs and economic growth.”


        When you’re competing against slave labor???

        I… mean I don’t know what to do mind you but…

        God this reminds me of the health insurance companies and Obamacare kinda…

      15. Until Henry Ford made the model T and increased his employees wages. The craftsmen building automobiles could not afford the product they where building. Now that is true for goods produced overseas by slave wage labor. Those workers cant afford the product they are making. So tell me how they are going to buy anything made in the USA? even without tariffs not very much that’s made in the USA is sold in the places that manufacture the cheep plastic crappy junk that is being imported to the USA. Their threat of retaliatory tariffs is a empty threat. Like saying im gonna increase the tariff on the stuff we dont buy anyhow.

      16. It might not be so bad if we were ready to re-industrialize but that takes time.

      17. Yea it will hurt. Think it is called sacrifice. This crap has been steam rolling for decades, it will not resolve itself overnight. Get out of debt. Buy American.

      18. You squint at gnats and swallow camels.

        Americans lost massive good paying industrial jobs and benefits in exchange for cheap Chinese slave labor goods! What a bunch of zombies.

        Americans shouldn’t buy ANY new goods if they are broke and should grow their own food. You know, like they used to when thrift and gumption were regularly imparted by a father and a mother and not single moms.

        Again do the math.

        In 1990, a single male breadwinner could easily make $35,000 in industry and have excellent benefits. Today due to inflation, that $35,000 equals $66,000.

        Yet the median household income ie two people cohabitating under one roof is $55,000! That’s right. Two people earn LESS than one guy earned in 1990 dollars.

        You are worried about paying more for slave labor garbage when the REAL genuine cost is the utter annihilation of the American middle class!

        Other that rare earth metals, we have enough natural resources to create our own goods and services in America. There is no need to buy foreign goods.

        More tarrifs not less.

      19. There is a very simple and economically sound method to repair the monumental damage by the globalists who got America in this debacle of Free Trade.

        It’s debt forgivess that has been used since ancient times that is only marginally different than bankruptcy. And the idea has bipartisan support.

        Let’s say a young couple both have huge educational debt equallying $50,000, and cannot find better employment, and working miserable service jobs more suited to part time employment. The government in stages of $1,000, forgives their educational debts. The government wins, the banks win, the consumers win.

        Similarly, a married couple are home owners paying a mortgage and have $50,000 as the balance. Thegovernment forgives the home mortage debt in stages of $1,000 against the principal.

        How does this help? As the debt is discharged, their net worth rises. This adds tremendous robust stability as people free and clear. The banks write off the debt and gain some financial advantage from the federal government.

        Think of this. You cannot raise the wages of all Americans by $25,000 as that would be inflationary, but by forgiving $25,000 of debt, you put all on a more sound fiscal footing, stimulate the economy, pay down debts, etc.

        There is no increase in income so no new taxes.

        If an older couple has no debts period, you either grant them $50,000 in a transferable credit to pass on to their relatives or give them $50,000 in a 30 year US bond which costs the government nearly nothing.

        Can you see how sound this is? It is no different than bankruptcy discharge due to medical debt or bad uncollectable debts or even corporate bailouts that we did in 2008.

        And this fixes the issue of high costs due to tariffs as well as allows industry in America to restart.

        And if this forgivement of debt in $1,000 increments works, then raise the amount per married couples to $100,000.

        The American economy would boom. Construction would occur everywhere.

      20. Let’s say you are concerned about the effect of tariffs on American crops that are exported. Instead, have the government recreate the commodity program which existed prior to food stamps. The government purchased bulk dehydrated crops and has manufacturing can these and offer each American household a year’s supply of dehydrated food for a family of four.

        For $1,000 per household,a mammoth amount of food security could be created for 325 million Americans. Think of the cost savings! Everybody wins.

        This would save many families economically, is frugal, is good stewardship is practical, and then these families have more net worth but saw no increase in income, so no new taxes.

        And we can create lots of these kinds of programs that cost nearly nothing and pay off in huge economic stimulus.

        If 30 million Americans have dehydrated food to prepare, chances are they are going to lose fat and live healthier. What would be the economic savings in terms of Medicaid, for example due to less depressed obese low income people with reduced high blood pressure?

      21. Tariffs that beget tariffs that beget more tariffs only lead to a trade war that will cost American jobs and economic growth.” What “American jobs”? Everything’s “Made in (Communist) China”.

      22. I will say we cannot even think about buying more goods made here without ending a lot of the rules/taxes/regulations ect.We CAN do this without endangering workers/completely destroying our environment,we just need to end the careers of millions of paper pushers,that said,it CAN be done.

      23. I hear Trump is planning a 25% retroactive property tax on all Chinese investors that purchase or have purchased real estate in the USA since 2000. Wait until they start selling their homes like crazy at a huge loss. ???

      24. Where did you hear this? A bunch of Chinese investors have been urgently selling their homes this week in San Francisco.

      25. Tariffs on Chinese goods are long overdue. They are killing our economy and we need to be protected. This should spur us to build more products here. I support Trump in this. Create more American jobs by building products in the US!!

      26. On manufactured goods where the majority of the costs are in labor, American manufacturers can’t compete because of the higher wage rates in America. We’re competing with the world and not just China. With an industry-friendly environment, our manufactures might recover a share of the market on manufactured goods that have a low percentage of manufacturing costs that is for labor. This doesn’t mean more jobs or higher wages.

        To survive, American families will have to be extremely careful with their money.

      27. Nope. If we outright ban all foreign trade and make everything domestically, the American Republic would be utopia.

        Meanwhile all other nations without natural resources would suffer like Japan.

        This is an entirely solvable problem as before 1973 or so with Nixon opening trade with China, nearly no Chinese goods were sold in America, nor from the USSR or any communist nations.

        People are such fools. I never bought new things as a newly married man but bought old appliances and old cars and fixed them. It was either learn how to troubleshoot and change parts or be eternally poor.

        Why do you need something new all the time like a computer every 2 years? Why do you even need a cellphone? Our ancestors had neither. They had no cable tv or DVD or streaming video.

        Rarely did a home have 2 bathrooms and lots had ONE!

        • Back in the day, a person could get good quality used items because things were meant to last for a while and could be repaired.

          There is something to be said for mechanical versions of today’s electronic laden items. Even simple sewing machines are filled with electronics vice mechanical components–a few new mechanical ones are made, just have to look hard.

          There weren’t garage or yard sales with people trying to unload their junk. Clothing was carefully kept and if child-sized, passed along to the younger ones. Toys could be repaired as well. Food was not tossed in the trash can but taken to the garbage pit–the old fashioned version of the compost pile.

          Not much was thrown away so trash pickup day did not consist of multiple cans to be hauled out to the curb. Recycling or reusing was the norm as items wore out. A new T-shirt would be worn until it could not be mended, then it was a dust cloth, then a car wash rag, and finally a rag in the workshop where it was used for assorted tasks until it was only good for a one-time use such as applying a stain or a grease rag to clean something under the hood.

          It wasn’t the norm to let each child have their own room. We shared. My childhood home had only one bathroom until I was 16 when dad and grandpa added on because another sibling was on the way. We all had chores to do, not for an allowance but because we were expected to share the workload of taking care of things. That’s how I learned gardening, cooking, cleaning, sewing, car care, basic woodworking, babysitting, etc. We didn’t have hired help for anything and pitched in to help relatives or neighbors who needed aid and with no thought of recompense. We were never bored either.

          • Yep. I sure didn’t have my own bedroom until I was eleven and I shared a bedroom with a sister! And we had one bathroom for all of us which meant taking a shower at designated times and doing everything in five minutes…just like the military.

            I had only a couple changes of clothing and we always shared clothing when we outgrew them. Many of my clothes were hemmed or stitched up by my mom ie altered so I could wear them.

            I got very few presents that were not practical like clothing. Otherwise I used my own earned money from delivering newspapers, mowing lawns, shoveling snow, etc to buy things like a rare ice cream cone or a comic book. It was a big deal when I bought my own pocket knife far before lock blades were common.

            People are so spoiled now. What they need and what they think they need is radically apart. This is why when the SHTF very few whiners will survive.

      28. For the moment things will be more expensive
        but always, always, other products will pop up (if the communist
        child labor stops and prices reflect a more fair trade….)
        maybe another country will step up… and adults can earn a living.
        The law of “supply and demand ” is always in play…. no matter
        who is buying or selling.

      29. Hard to see most anything tagged Made in China ever becoming collectible, unlike items stamped Made in Occupied Japan which carry increasing value.

      30. make the same product in the USA for the same price as the “China one” and make it better.
        The true “Art of the Deal” is when everybody is a winner!
        and Remember: don’t ask what the World can do for the USA – ask what the USA can do for the WORLD.

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