What’s going on?
President Donald Trump has been keeping his campaign promise to crack down on trade with China.
What else should I know?
Last month, the U.S. imposed steel and aluminum tariffs that mainly targeted China. Trump decided to take it to the next level this week, with the U.S. proposing tariffs on $50 billion worth of Chinese products. On Thursday, Trump threatened to double it to $100 billion. In the meantime, China has been retaliating with its own sanctions.
Catch me up:
Tariffs, or taxes paid on imported or exported goods, are essentially an extra cost that gets passed on the consumer. That means everyday Americans will be spending more to buy everything from cars to electronics to furniture and other products.
“This is going to hurt bad,” Glenn summed it up on today’s show.
China’s retaliatory tariffs will – ironically enough – hit Trump voters the hardest since lower-income and middle-class Americans will feel rising prices the most.