Tarrifs and Economic Impact

 

The US has put very high tariffs on many Chinese products to protect its own industries. These tariffs make goods more expensive for American shoppers and businesses, costing each household over $1,200 a year. The goal is to reduce dependence on China by encouraging companies to move their factories to other countries like Vietnam, Mexico, and India. This shift is called "trade diversion." While this helps some countries, it also causes problems like higher prices and disrupted supply chains worldwide. China has responded by adding its own tariffs, making trade between the two countries even harder. This ongoing conflict affects not just the US and China but the whole global economy.

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