Here’s how a trade war will hit soon-to-graduate Idaho students

If President Donald Trump’s escalating tariffs on China – climbing as high as 145% – intended to halt Chinese goods from flooding into the U.S., the President got his way.

The question, many economists ask, is: What’s the endgame? The trade war between China and the U.S. has indeed escalated to the degree that major U.S. retailers are now warning about impending supply shortages, according to CBS News.

But it’s much more than goods from China that has retailers and wholesalers worried. In fact, the U.S. wine industry is struggling as well. One might think that they might be doing gangbuster business because of tariffs on French or Italian wines. But it turns out that U.S. winemakers need plenty of overseas supplies to make their wine.

“Most of their bottles come from China,” said Dr. Jim Kroes, Boise State professor and expert on supply chain economics. “Even the wood they use for their barrels comes from French oak. So, there are these unanticipated consequences.”

Another challenge, Kroes said, hits very close to home.

“We’re graduating our seniors in a couple of weeks,” he said. “And our top students aren’t finding jobs. Many companies are imposing hiring freezes – companies that have consistently hired our students upon graduation in the past. It’s tough for me to see these students who have worked so hard and are now graduating into a very uncertain job market.”

Kroes visited with Morning Edition host George Prentice to talk tariffs – existing and threatened – and what consumers should be on the lookout in the months ahead.

Find reporter George Prentice @georgepren

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