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For instance, a textile manufacturer previously profiting from the sale of polyester fabric is now facing significant losses due to tariffs. With a heavy backlog, these factories are forced to consider desperate measures, including selling inventory at drastically reduced prices just to recover some costs.
The Broader Economic Implications
As both sides grapple with the fallout from this trade conflict, the economic implications extend beyond immediate concerns about shipping and tariffs. American consumers are now faced with rising prices on goods imported from China; those products previously priced at $100 now risk costing $245 due to tariffs alone.