US tariffs on China could cost US households up to $1,000 per year.
US tariffs on China could cost American households $1,000 per year, JPMorgan says
Excerpt:
"Boosted by historically low unemployment, households have continued to spend. Retail sales jumped in July by more than analysts anticipated. However,
in early August to seven-month lows as the trade war intensified and the
to offset tariff uncertainty."
"Corporate profits are already under pressure from the trade war.
JPMorgan lowered its estimate of 2020 S&P 500 profits to account for the September 1 tariffs. It warned profits would get worse if the tariffs scheduled for December 15 go ahead.
Home Depot (
) dimmed its sales guidance on Tuesday
caused by the tariffs on China.
"The US consumer is facing the impact of tariffs. While trade discussions are fluid, consumer demand could be impacted," Carol Tome, Home Depot's chief financial officer, told analysts."
This increased cost for the US consumer should be viewed in another light.
Nearly 40% of Americans can't cover a surprise $400 expense
Excerpt:
"What that means on the ground: Even a thriving economy can leave people close to the edge. The Fed found that 27% of survey respondents would have to borrow money or sell something to cover a $400 emergency — 12% couldn't cover it at all. Other findings from the annual Fed report, which is based on a survey last fall of 11,000 people:
- 17% of U.S. adults are unable to pay all of their bills in full every month.
- 25% of Americans skipped necessary medical care in 2018 because they couldn't afford the cost.
- 30% of families must cope with income that that varies from month to month.
- 25% of adults who are still in the labor force have no retirement savings or pension.
- 30% of people either can't pay their bills or are one modest financial emergency from serious trouble. "