If US-Chinese Relations Get Worse, the Price of Just About Everything May Increase

Nicholas L Shimanek

Under the leadership of President Donald Trump, the United States is now caught in trade wars with two of its largest trading partners.

China has been repeatedly dubbed by the president as a “currency manipulator”, and Mexico has come under fire primarily because of his long-standing campaign promises surrounding immigration.

The situation with Mexico was recently fixed after the government was threatened with a 25% tariff on all goods. This threat was made public on Twitter, and Mexico was quick to compromise. A deal was made between our governments, provided that Mexican troops be stationed on their Northern and Southern borders to stop illegal immigration.

Mexico agreed, and the rate of illegal entries into the United States through the Southern border has decreased. It appears that more trade and better relations are now possible.

China has not been so easily intimidated. They have responded to president Trump’s trade war with ever-increasing tariffs on a broad range of exported goods.

It’s amazing to consider how many of the products we use in our daily lives are made in China. A vast number of influential and wealthy companies from the US, such as Apple and Nike, rely on China’s cheap labor to sell their goods at a low price.

If tariffs are increased on China, American businesses can no longer outsource their labor or invest in the country. This means prices on all electronic goods will increase, as almost all tech firms will be forced to look elsewhere.

College students live on such tight budgets that cliché jokes are often made in media at the expense of those who live on “one ramen a night” diets. Students are increasingly reliant on laptops and smartphones in the classroom, and headphones and other accessories at home. Thus, they are particularly susceptible to changing prices for items like electronics and food. Luckily, we have not yet seen increases on the prices of these goods.

Apple has already received criticism for the high prices of their newest iPhone and desktop. Another massive increase could cause the company to erupt in a massive scandal, as no American consumers want to spend yet another thousand dollars on their cell phone.