Title: How Would a Trade War Affect You
Headings: How Would a Trade War Affect You
How Would a Trade War Affect You
Key Takeaways
The Basics of Trade Wars
How Will it Play Out?
Why China, Why Now?
What Does it Mean for American Consumers?

Content: What does that mean for people working and living in the United States? First, it's important to understand that U.S.-China trade does not happen in a vacuum. It happens in the web of a global economy where purchased goods are made and sold through several different countries before reaching their final destinations. When the U.S. puts tariffs on China, the world’s largest manufacturing hub, it will likely affect many other countries, products, and companies that rely on this global supply chain. Research from the Peterson Institute for International Economics shows that in an industry like computer and electronics products, for example, mostly non-Chinese corporations who operate in China supply 87% of the products that will be affected by the tariffs, while Chinese firms send only 13%. In our global, interconnected economy, it is nearly impossible to target one country or one industry without affecting the rest, and maybe even some allies. These tariffs have the potential to hurt American companies even more than the firms in China targeted by the Trump administration. A study by the Federal Reserve Bank of San Fransisco in 2011 showed that for every dollar spent on an item labeled “Made in China”, 55 cents went to services produced in the United States. 6 ﻿ This is yet another example of how raising tariffs and starting trade wars in a global economy might come back to hurt U.S. businesses and consumers. American consumers won’t feel the consequences of Trump’s trade war with China for some time, but they will eventually.