SPRINGFIELD, Mo. – The DOW is up today more than 200 points after yesterday’s more than 600-point drop.
The drop was caused by China’s announcement to increase tariffs on American goods.
This is in retaliation to the Trump Administration’s increase in tariffs on Chinese goods.
It’s no secret the U.S. relies heavily on China for its exports, but while you may think it won’t affect you, these tariffs could have a big impact on the Ozarks and your budget.
Obelisk is a Springfield home-furnishing store. According to the co-owner of the Taylor-Martin Group, a collection of companies that Obelisk is a part of, 40 percent of their products are from China.
“It’s a big percentage,” said J. Kent Martin, the co-owner.
Martin says as a result of the tariffs, the Trump Administration imposed on China, they’ve tried their best to absorb costs on those goods.
Eventually, however, paying for the tariff will become the consumer’s burden.
“We’ve tried to stall as long as we can,” Martin said. “Obviously, some of our key suppliers do import from China and as those prices go up, we probably have no choice but to edge up a little bit.”
Starting in June, China will impose these new tariffs on $60 billion worth of American goods.
The tariffs are in retaliation to a tariff increase made by the U.S. last week.
President Trump increased tariffs on Chinese goods from 10 percent to 25 percent.
President Trump says the increase is a good thing and will force the U.S. to buy from somewhere else, or to start making goods in the U.S. to create more jobs.
However, Martin says he just doesn’t see that happening.
“Bringing those jobs back to the U.S., I don’t believe, is likely,” said Martin. “The American consumer does not want to pay with the American workforce wants to be paid to produce goods. So, we rely on outsourcing”
President Trump claims the reason for the tariff increase was because China treated the U.S. poorly.
“We’re having a little squabble with China because we’ve been treated very unfairly for many, many decades,” President Trump said to reporters on Tuesday.
“The relationship I have with President Xi is extraordinary. It’s really very good but he’s for China and I’m for the USA and it’s very simple,” said President Trump.
As for the future of businesses, “I see us continuing to chase low costs of goods,” said Martin. “I think it’s unfortunate.
“I think it’s a standoff between two countries that both rely heavily on each other,” Martin said.
On Monday President Trump threatened a 25 percent tariff on the $300 billion remaining U.S. imports from China.
President Trump says he’ll meet with China’s President Xi in June, at the G-20 Summit.