President Trump set into motion a 25% fee on more than 800 Chinese imported goods and China hit back with tariffs of its own on products like soybeans, pork and corn.
Now, China has canceled those soybean orders. They are nearly a third of the entire soybean crop purchasing power there. That’s a big hit to the U.S. economy.
So what we see is, we not only see damage to American farmers, because they’re not able to sell their soybeans, but what happened next is, China bought their soybeans from Russia, they tripled their purchases from Russia.
The ripple effect beyond that is that American farmers now have to source for new markets for their commodities.
To escalate the trade war is going to be bad for the Chinese economy, for sure, but it’s also going to be bad for the U.S. economy, because much of the consumption in this country is produced by Chinese companies. A lot of the components sourced by U.S. companies are produced by Chinese companies.
It’s going to have a huge ripple effect on the U.S. economy as well.
Escalating tariffs would likely raise prices for consumers, inflate costs for companies that rely on imported parts, rattle financial markets, cause some layoffs and slow business investment.

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