Reference News, July 13 report: According to the US Atlantic monthly website on July 11, you may have forgotten the trade war, but the trade war has not forgotten you.

This week, Donald Trump once again ignited the global conflict he sparked in January, writing to more than 20 countries, threatening to impose new tariff rates. Starting in August, US importers will pay 25% tax on goods from South Korea and Japan, 35% tax on goods from Canada and Bangladesh, and 50% tax on goods from Brazil, unless these countries agree to bilateral agreements. In addition, Trump warned that he would impose tariffs on goods from countries that "align" with China, India and other industrial powers' "anti-US policies" (without giving more details), and also impose a 50% tariff on imported copper used for housing construction, electronic products and utility systems.

The tariff statements this summer are as harsh, absurd, and hard to take seriously as all other tariff statements from the White House this year.

Small businesses and companies that rely on importing goods from countries facing high tariff rates are the most vulnerable.

So far, businesses have protected American consumers from the impact of tariffs by absorbing part of the costs themselves and relying on inventory. The result is that inflation has remained low this year, and economic growth has been strong enough. However, businesses can only store limited inventory in their warehouses. Analysts at BNP Paribas estimate that inventories will be "emptied" by late summer, and prices will rise accordingly.

The Yale Budget Lab estimates that American consumers currently face an actual tariff rate of 18%, the highest since 1934. Due to Trump's policies, American families will spend an average of $2,400 more this year to buy goods.

According to the Hong Kong South China Morning Post website on July 11, the owner of an arts and crafts store in the San Francisco Bay area, Catherine Harrison, is worried about what might happen if the US government raises tariffs on some Asian economies later this summer.

The 33-year-old has already been under great pressure. The cost of major materials such as paper has doubled this year due to increased demand, forcing her to seek cheaper alternatives to maintain price stability.

Now, she is worried that increasing tariffs on imports from countries like China could further squeeze her profits by the end of the year.

As she said, "The cost of everything is rising," while she was placing stickers, mini puzzles and bookmarks outside her store in Alameda.

Since Trump launched the global trade war in April, US businesses have basically managed to absorb the cost of higher tariffs. But if the threat of raising tariffs on China and other major trading partners in the coming weeks is carried out, this situation is likely to change.

James Knightley, Chief International Economist at ING Financial Markets, said: "I think it is very likely that prices will rise in the second half of the year, especially considering the broad measures of returning tariffs to the levels initially announced on 'Liberation Day'."

Douglas Barry, a Washington consultant who focuses on Sino-US trade, said that US small businesses "have already been hit by the trade war." He added that the cost of higher tariffs on imports from China would "affect the domestic economy, leading to a decline in demand for jobs such as truck drivers... and shop assistants."

In Alameda, tariffs are just the latest reason for consumers and business owners who have long been troubled by high inflation. Shoppers say they have seen many product prices increase this year, including home appliances, dog food and takeout coffee.

Ann Wetheridge, a 78-year-old artist shopping in Alameda, said, "Airfares seem to have gone up." She recently gave up a plan to visit her daughter after hearing that each ticket would cost $1,200.

Wetheridge said her daughter is worried about the tariff increases because she runs a business that sells seasoned nuts and needs to use raw materials from Southeast Asia. On July 7, Trump announced that goods imported from Cambodia, Laos, Indonesia, Malaysia, Myanmar and Thailand would be subject to double-digit tariffs.

Wetheridge: "Her profit margin is very low. It's a difficult time economically." (Translated by Ge Xuele)

On June 24, the owner of an electronics store in New York is talking to a customer. (AP)

Original article: https://www.toutiao.com/article/7526524858801357375/

Statement: This article represents the views of the author. Please express your opinion by clicking on the [Top/Down] buttons below.