Provide a current event on a microeconomic issue

China tariffs is a major micro economic issue affecting the supply of different products imported to America. It is worth noting that China is one of the largest trading partners with America. In other words, the United States depends on different imports from China, such as electrical machinery and equipment, furniture, mechanical appliances. Therefore, implementing protectionist trade measures such as raising taxes in order to restrict imports from China has the effect of lowering the supply of imports. Consequently, a decline in the supply of different products leads to a shortage in the market, which leads to excess demand and increase in prices. The reason for the argument is the idea that when a commodity is short in supply in the market, the increased aggregate demand prompts sellers to raise the prices of the commodity to counter the excess demand. The situation is likely to be experienced in America if the current administration further imposes trading sanctions with China.