Trump to hike tariff on Chinese imports | Eurasia Diary -

18 July, Thursday

Trump to hike tariff on Chinese imports

Economy A- A A+

The Trump administration’s 10% tariff on $200 billion in Chinese imports hasbeen a nuisance, with many US businesses absorbing the cost or working around it.

But President Trump’s threat over the weekend to hike the duty to 25% would dramatically compound the damage as the lion’s share of the costs are passed to consumers, taking a toll on the economy as well as company profits.

“A sudden tariff increase with less than a week’s notice would severely disrupt U.S. businesses, especially small companies that have limited resources to mitigate the impact,” says David French, senior vice president of government relations for the National Retail Federation. “American consumers will face higher prices and U.S. jobs will be lost.”

The tariff would affect nearly 6,000 products and parts, including many consumer items such as furniture, clothing, electronics, handbags, luggage, hardware, shampoo, perfume, dishes, bedsheets, bicycles, meat and cereal. New-vehicle prices also could rise as parts from China become more expensive, Bank of America Merrill Lynch auto analyst John Murphy said in a research note Monday.

AudioControl, which makes high-end audio equipment, imports about 25% of its parts from China, says Alex Camara, CEO of the Seattle-based company. Of the 10% tariff, he says, “We’ve primarily absorbed the cost, which has been painful.”

USA Today

Report a mistake by marking it and pressing Ctrl+Enter

EurasiaDiary © Must be hyperlinked when used.

Follow us:
Twitter: @Eurasia_Eng
Facebook: EurasiaEng