Markets react to Trump's tariffs plan

President Donald Trump's planned tariff hikes mean that every Chinese good coming into the U.S. would be subject to some sort of tariff.
1:19 | 08/02/19

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Transcript for Markets react to Trump's tariffs plan
to fight one, George. Okay, Kyra. Thanks. Let's get more now from Rebecca Jarvis. When this president sent out this tweet, you saw this swing in the stack market. And this is the tit for tat that Wall Street was worried about from the very beginning. Now every single Chinese good that comes to the U.S. Is going to be subject to a tariff, and in real terms, those are things that people use. Toys, clothes, shoes, electronics, and that's why you saw the stocks of retailers like target and Nike and Best Buy, they were hit especially hard. These businesses either have to eat those costs, George, or pass them off to the consumer and most people are anticipating that consumers will pay higher prices. The president says China will pay it. That's not entirely accurate. It works as a tax on the American con suturer. It works as a tax on everyone. The fed reserve has laid out the fact that tariffs are the single biggest threat to the U.S. Economy and the global economy. What they ultimately mean is that prices go higher, you see it in your 401k, and it can hit jobs because businesses are either passing these costs off to consumers or absorbing they will, and that will ripple down to the jobs they're employing and that's a big issue for the economy and potentially the election ahead as well. Thanks very much.

This transcript has been automatically generated and may not be 100% accurate.

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