The Impact of the US-China Trade War on Import and Consumer Prices in The US And Their Economic Consequences.

Abstract

This article examines the impact of the US-China trade war on import and consumer prices in the US and the economic consequences it brings. The analysis will first take an overview of the chronology of established tariffs before reviewing their effects on prices. By sourcing from data websites and analysing past articles, the author has concluded that the establishment of these protectionist tariffs has had a negative impact on inflation, driving up import and consumer prices. This is because of the rise in price upon import due to tariffs. The article then takes a turn to analyse how the rise in prices will affect the economy. The author will consider the economic impacts based on four main factors: inflation, employment, incentive, and wage. After thorough analysis, it is concluded that the US has ‘sabotaged’ its own economy with its tariffs, and it is highly encouraged for the US to take back tariffs to normalise trade.