US-China Trade War: Tariffs to be added and increased over time

Christopher Zenios14/08/20194min
As the trade war between China and the US escalates President Trump has announced a new 10% tariff on another $300bn of Chinese goods.

The tariff is set to begin on the 1st of September and was announced following the most recent bilateral talks that proved to be unsuccessful. That tax is likely to hit a variety of goods imported such as tech and clothing.

Wang Yi – Chinas Foreign Minister commented on the announcement stating “Adding tariffs is definitely not a constructive way to resolve economic and trade frictions, it’s not the correct way,”

President Trump announced the tariffs online tweeting

It is likely the prices could escalate even further as later Trump stated that the 10% Tariff is short term and that the tariff could be increased to 25%.

He went on further to criticize China for not buying US agricultural products after stating they would honour the promise to do so.

Impact of the tariffs on the US

The Dow Jones share index closed down 1.1% with Asia markets lowered and oil prices tumbling on Wall Street. Due to the impact, the Federal Reserve Cuts Rates for the first time since 2008.

The impact has caused the US Chamber of Commerce to petition both sides to remove tariffs commenting the most recent tariffs

will only inflict greater pain on American businesses, farmers, workers, and consumers, and undermine an otherwise strong US economy.

The words of this statement ring true as US citizens are now paying the price for the ongoing trade war. One example is of Sherrill Mosee “I’ve been building my business, and growing it year after year, and then this happened”

Mosee is a founder of a bag company based in the US that manufactures in China and ships internationally. The price of her imports has now almost doubled leaving her to look into loans to find the money to pay for the increased tariffs.

As a small business, my finances were already a little tight. I had to figure out how I was going to get the money to operate the business. We’re all paying for this, not [only] China

She has also had to raise the prices of her product by 25% to balance the cost resulting in US and international customers paying more due to the tariff war.

Sherrill Mosee is just one of many examples that have been impacted. Some companies have gone as far as shifting production altogether.

American Chambers of Commerce in China and Shanghai recently conducted a survey that found that 40% of people are considering moving business to avoid tariff costs, with most business looking to South East Asia.

Christopher Zenios

Christopher has always been a pioneer, a first adopter when it comes to technological advancements. Over the years, his expertise surrounded the real estate and digital markets and their evolution in today's society. After being the editor to various professional business news portals and blogs, he was selected to become the chief editor for HWC. Contact Christopher at +357-22029786 ext: 6110 or by email at [email protected] for editorial related questions.

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