In a few weeks, depending on the outcome of testimony and due process procedures, the U.S.-China trade war may be escalated to an even more bitter level. It began in July 2018, when the Trump administration imposed a 25% tariff on $50 billion in Chinese imports. The Chinese retaliated. Then, in September 2018, the United States laid a 10% levy on an additional $200 billion in Chinese goods, and that tariff was raised to 25% in May 2019. Again, the Chinese retaliated.

The bureaucratic wheels now turning would expand the imports covered by the 25% tariff to include an additional $300 billion in Chinese goods. Do the math: 25% of the sum of $300 billion plus $200 billion plus $50 billion is $137.5 billion. That begins to look like serious money. Keep in mind, there will be a whole lot of shaking going on as all affected parties attempt to escape the tariff. Revenue shrinkage is a certainty.