The Trump Administration is going tariff crazy! Chinese imported goods have seen a huge increase in tariffs recently and President Trump has revealed a list of additional categories for another huge tariff hike.
Reuters reported that the new categories to be affected by tariffs will be as high as 25 percents. The categories include laptops, cellphones, and tablets, along with other everyday items like clothing, shoes, pencil sharpeners, books, bedsheets, and lawn mowers.
Fresh produce, meat, dairy products, and various live animals can also be subjected to increased tariffs. Some major imports would not be affected are pharmaceuticals and rare-earth elements.
President Trump has declared that the tariffs would be paid for by China. Many analysts think the contrary will happen, similar to 2018 when the tariff increases from his administration have shown to mostly fall on the American people.
The proposed set of tariff increases would affect almost every line of consumer goods, to the disadvantage of companies like Apple, which manufactures its iPhones, iPads, and Mac computers in China.
Given its severity on both parties, this move would appear to be an effort to scare China into negotiating a new trade deal between the world’s biggest economies.
On June 17th, a public hearing will take place to discuss the more than 3,000 product categories included on the list. After a seven-day comment period, the new tariffs would be ready to go into effect at the end of June. This is around the same time President Trump and Chinese leader Xi Jinping will be meeting at a G20 summit in Japan.
The Trump Administration made a gutsy move, that if put into effect will be negative for both the United States and China, along with having a significant impact on the global economy.
[…] most widely covered issue in the news that is currently impacting the global economy is the trade war between the United States and China. With each new release about an update of the ongoing trade war discussions, the market rallies or […]