The effect of the Tariff and the Currency Manipulation

It’s important to realize what happened with the new tariffs announced by the USA and China’s response. The President put 10% tariffs on three hundred billion dollars of imports from China. The Chinese devalued their currency in response. The media “experts” and the Dems scream this will hurt consumers but they’re wrong. First, not all tariffs will pass through as price increases. Second, the devaluation will result in lower prices in dollars for Chinese goods. That price cut offsets the tariffs. In essence China will pay the tariffs because it will get fewer dollars for its good while the USA will get the taxes raised by tariffs. Consumers will see little if any change.

This will just put more pressure on China

Of course, the whole issue is not this simple, but those who talk about how this hurt consumers are still wrong.  Don’t hold your breath waiting for the exerts to admit this though. They never admit when they’re wrong.