Domino effect of tariffs could still hit your wallet - WMC Action News 5 - Memphis, Tennessee

Domino effect of tariffs could still hit your wallet

Source: WLBT Source: WLBT
Source: WLBT Source: WLBT
Source: WLBT Source: WLBT
Source: WLBT Source: WLBT
STARKVILLE, MS (Mississippi News Now) -

As the Trump administration prepares to add $200-billion-dollars worth of products to the tariff list, even more products you use on a daily basis could see a jump in price.

Made in China is a label that you've probably seen many times before and probably haven't thought much of it. But prices of several of those products could soon be subject to change if negotiations don't happen.

"The benefits of trade are usually benefits that go to consumers," explained Dr. Keith Coble, Mississippi State University Agricultural Economics department head. "So you go to the grocery store and you go to the department store, things are cheaper and it's not really obvious to us why things are cheaper. And that's the difficulty for people to understand these trade issues."

Dr. Coble gets it, we're not all farmers, but says America's agricultural interests are very much tied to other items that are now facing tariffs. He says each country tries to hit the other where it hurts, in hopes of pressuring them into a better deal.

"The United States is particularly good at producing soybeans,' noted Coble. "And that's why we produce a lot of soybeans and ship them to China. They're really good at producing clothing, for example, textiles. So, we buy a lot of our clothing from China."

So when each country starts to add a tariff to those products, the extra cost eventually makes its way to the consumers. While you may not be a soybean farmer, remember those farmers are part of a $1.1 billion-dollar industry in Mississippi. And those crops are quickly dropping in value.

"We'll feel the impact in Mississippi before the Mid-West feels it because we harvest earlier," said Coble.

There's a domino effect that happens now. Much of the state's soybeans usually go to China. If those farmers don't make as much or lose money, they won't have as much to contribute to the local economy.

The tariff battle is complex. So, don't think that just because you don't farm that your wallet won't take a hit.

For a list of Chinese products that are being readied for new tariffs, click here.

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