Stretch Your Dollar

Stretch Your Dollar: How the trade war with China is impacting your finances

(WTNH) - The trade war between the world's two biggest economies is having a direct impact on your finances.

We are stretching your dollar with a closer look at the short and long-term impacts as the U.S. and China raise tariffs on goods.

The markets are already reacting and your nest egg is feeling the pinch.

Related: US issues $300B target list of Chinese goods in trade battle

"If you look at your 401k today, you're seeing a major drop," said Chris Burns, Dynamic Money

Wall Street had its worst day in four months as the trade war between the U.S. and China escalates and experts say now is the best time to re-assess your investment tolerance.

"Focus on what you can control which is how much risk you're taking and if you take your 401k to a risk level you feel good about, then you have peace no matter what the government decides to do tomorrow," said Burns. 

It's not just investments taking a hit, your wallet could be next if those tariffs extend to consumer products.

China would likely hike up prices on smartphones, computers, televisions, fitness trackers and much more.

The impact for the average american family of four is expected to be close to $800.

What's driving up costs? Experts say those additional tariffs create a ripple through supply chains.

That means companies will likely pass on the expenses to consumers instead of taking the financial hit.

"There's no clear cut we're hurting them or they're hurting us. We're hurting ourselves at the same time," said Burns. 

Three quarters of the toys bought in the U.S. are made in China. 93-percent of Chinese footwear including some Nike shoes could become pricier.

So could clothing, Bluetooth headsets and even drones.
 

==

Free download: Access Connecticut breaking news, weather, stream newscasts live and more on-the-go with News 8 alerts directly to your phone.


More Stories

Storm Team 8 Weather Headlines

Latest Connecticut Headlines

Video Center