Starting next month China will raise tariffs, up to 25 percent on $60 billion worth of United States goods. It comes one week after President Trump expanded tariffs on $200 billion worth of Chinese goods.
"There are three things that companies can do,” said Syracuse University Whitman School of Management Supply Chain Professor Patrick Penfield. “One, they can raise prices, two they could absorb the price increase or three, find another source. And so most of them because of the short duration of time they are going to raise prices automatically."
Penfield believes Upstate New York consumers will feel the latest trade war punch.
"We import so much from China,” said Penfield. “So unfortunately when these tariffs hit, it really does impact business. So not only will it impact prices of food and products, but you will probably see interest rates go up because a lot of times when inflation goes up, the federal reserve will get involved and try to increase rates to tap down inflation."
The tariffs will impact everything from tobacco products to lawn fertilizer. But Penfield says the biggest areas are electronics, clothing, and toys, with 95 percent of them being made in China.
U.S. Rep. Anthony Brindisi (NY-22) says leaders need to be careful as the trade war continues.
"We need to make sure that they are not taking advantage of American workers,” said Brindisi. “I'm not sure tariffs are the right way to go because it will put an extra tax on consumers here, so I would encourage the president and his administration to get back to the drawing board."
While there is no end in sight to trade negotiations, Penfield hopes there is a resolution.
"I'm hopeful in the next six months there will be some type of resolution,” said Penfield. “If that doesn't happen, the only other course of action is to find different sources outside of China. Could be Mexico, Canada."