(CNN) - The trade war between the world’s two biggest economies is having a direct impact on your finances.
The U.S. and China are embroiled in a trade war. (Source: MGN)
On Monday, China hiked tariffs on more than 4,000 imports from the U.S., including cotton, machinery, grains and aircraft parts.
This comes days after President Donald Trump made thousands of items coming in from China more expensive.
The markets are already reacting, and your nest egg is feeling the pinch.
“If you look at your 401k today, you’re seeing a major drop,” said Chris burns of Dynamic Money:
On Monday, Wall Street had its worst day in four months as the trade war between the U.S. and China escalates, and experts said 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,” Burns said.
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 said 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,” Burns said.
Three-quarters of the toys bought in the U.S. are made in China.
Ninety-three percent of Chinese footware, including some Nike shoes, could become pricier. So could clothing, bluetooth headsets and even drones.
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