

Trade wars could cause countries to “go back to being insular,” Bhatia said, which could cultivate “spurts of patriotism that translate into people spending more locally in their own nation.”
Consumer spending on goods and services account for around two-thirds of U.S. gross domestic product. There is therefore is a “high probability” that a tariff-induced increase in domestic expenditure will cause the country’s GDP to “do better than you anticipate,” Bhatia said.
None of that sounds all that bad, to me, but Americans have gotten very used to buying cheap goods imported from foreign countries where labor and other costs are much lower. The whole point of tariffs is to make those foreign made goods more expensive so that American made goods can better compete with them on price, but that doesn’t result in things getting less expensive for consumers (or producers, for that matter, since they’ve also gotten used to cheap, foreign made parts and components). Prices will go up, and if they go up too much American consumers might stop buying.
Or will they? Americans be shoppin’, and I’m not sure how high prices would have to go for them to stop. I don’t know where people get the money to just keep consuming, but they do, somehow.
Edit: I think there is the threat of American producers trying to keep prices from going up too much by finding ways to suppress wages for workers and by just making products crappier, since their primary focus will be squeezing every possible penny of profit out of every sale.
That seems to be the case.