Tariffs are taxes, and like any regulation or tax, the increased cost will get passed onto the consumer. Although this is common sense, many still don’t believe that the trade war had an impact on their financial situation. However, just last year, Americans (not the Chinese) spent $1.4 billion per month on trade war taxes.
The signals from financial markets today indicate that we could be on the verge of a new credit crisis. The looming debt trap threat has ensnared millions of Americans, and they firmly believe that their government (which is $22 trillion in debt) will somehow protect them and save them from themselves.