The government isn't imposing "price controls". They are adjusting trade tariffs to FAIR, what the opposing countries have been charging us for decades while ours were very low.
This statement (and other comments that I've read in this thread) indicates a basic lack of understanding about how tariffs work.
Foreign nations do not "charge us" for anything. The tariffs imposed by the US on foreign goods are paid by the people and companies who import those goods and that money is paid to the US Treasury via the Commerce Dept or whatever department regulates the importation of goods. Those importers then pass on the cost of those tariffs (which are, in effect, taxes) on those goods (whether sold directly as already manufactured products or as components of products that they make) by raising the prices of those products or goods that WE consumers pay for to make up for the cost of the tariffs paid.
The same thing happens in foreign nations. They charge tariffs on importers of American goods into those countries and do not charge or attempt to collect those tariffs from the US government. Consumers in foreign countries pay for those tariffs on American goods to the companies who pass on the cost of the tariffs paid to the governments of those countries.
This is why tariffs are both inflationary and recessionary. Tariffs raise the cost of goods to consumers w/o any benefit in the quality of those goods, which is purely inflationary. Since tariffs raise the cost of goods, it also makes consumers less likely to buy them which is recessionary. A "tariff war" is antithetical to "free trade" and is damaging to the economy of all countries and the financial well being of all people involved.
Does this mean that we are more likely to buy more costly American made goods as a result? Of course NOT! Why would you buy more expensive goods, when you can buy the same goods for less? Even if the cost of goods made in China goes up, you'll still probably buy them instead of American goods, unless there is no (or very little) difference in the cost or unless you choose to pay more simply because you believe in buying only American made goods. The latter is an admirable philosophy but few people who have to make ends meet and live pay check to paycheck would make that choice.
One of other the glaring effects of Trump's ill conceived trade war w/China is that China decided NOT to buy ANY (as in NONE, ZERO) soybeans from American farmers since the tariffs were put into effect. This means that American soybean farmers are going bankrupt, which is why the Republican Congress passed a $800 BILLLION (with a B) Farm Bill to bail out soybean and other farmers suffering from the effects of the tariffs.
So, who's paying that $800 Billion? American taxpayers, like you and me, of course. So, not only do we have to pay MORE for Chinese (and other) goods because of the Trump tariffs, we have to pay more of our tax money to bail out farmers who are going bankrupt because of those tariffs.
These actual and anticipated negative economic effects are also not limited to pocket book issues. They affect your investment portfolio as well. The recent 15% drop in the stock market is a direct consequence of the "market's" prediction of a decline in corporate profitability due to the tariffs and other economic factors. Apple's announcement today of likely LOSSES due to the tariffs and other factors, which contributed to a 600+ point loss in the Dow, is not and will not be an isolated event. Other companies are expected to make similarly negative economic predictions. So, if you've got $ in the market, this would be a good time to take profits if you have any or cut losses on holdings where you don't.
This is why starting a tariff war w/China and other countries was a very, very bad idea.
