The US-China trade war has a precedent in higher energy prices
There are many times when oil prices have increased enough to create the pinch consumers are about to feel on the latest round of tariffs
One of the reasons investors are so alarmed about the escalating trade war between the US and China is that there isn’t an exact parallel in recent memory. It’s the fear of the unknown. But the impending cost of the latest round, with tariffs expected to be felt in household budgets, does have a precedent — in the form of higher oil prices.
There are many times in recent history when oil prices have increased enough to create a similar pinch to that consumers are about to feel should this latest round of tariffs on Chinese imports go into effect. A 10% tariff on $300bn of Chinese goods is a $30bn tariff bill that American consumers will end up paying...
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