The two dolls economy

Main Topic: The impact of the US-China trade war on the global supply chain and American consumers.

Key Points:

• Economists predict shortages of essential goods due to the trade war, but President Trump claims that Americans don't need as many items, citing the example of a child needing only two dolls instead of 30.
• Global supply chain reporter Lorianne LaRocco explains that the US supply chain is facing a 60% decline in ocean freight bookings from China to the US, leading to potential shortages and price increases.
• LaRocco advises American consumers to prepare for the trade war by buying essential items, such as laptops and flat-screen TVs, before June 2023, when tariffs are expected to increase.
• The de minimis rule, which exempted goods worth less than $800 from tariffs, has been suspended for goods made in China, leading to increased prices and frustration among American consumers.
• Shein and Temu, popular online retailers, have started charging tariffs on their goods, leading to price increases and consumer frustration.
• Some American business owners see the trade war as an opportunity to compete with Chinese retailers, who have undercut them on price.

Participants:

• Lorianne LaRocco, global supply chain reporter for CNBC and author of "Trade War, Containers Don't Lie"