Did we just witness the economic trigger event that will cause the dramatic stock market crash that we were just warned about?  On Friday, U.S. stock prices absolutely plummeted once President Trump announced that China’s new rare earth export restrictions would be countered by “a massive increase” in tariffs on Chinese imports into the United States.  If tariff rates go above 100 percent, many Chinese-made goods that are currently filling our stores will no longer travel across the Pacific at all.  In addition, whatever does come over from China will cost a lot more.  For example, you may have noticed that many things that were priced at $1.25 at Dollar Tree are now priced at $1.50 or $1.75.  Of course this is just the beginning.  Once the new tariff rates on Chinese-made goods go into effect, we will see price shocks like we have never seen before.

The post U.S. Relations With China Just Went Down The Tubes, And So Brace Yourself For Much Higher Prices And Shortages Of Certain Items was first published by Michael Snyder on The Economic Collapse Blog and is republished here with his permission. Please support his efforts.