China Races to Get Goods to the US Before Tariffs Hit

Larry Hoffman
September 26, 2018

Trump previously vowed to immediately retaliate with further tariffs on around $267 billion of Chinese imports if Beijing introduces tariffs in response to the latest measure.

Numerous 5,745 items on the newest tariff list are consumer goods or things that Americans buy every day: fruit juice, furniture, air conditioners, and more.

"President 's tariffs are leading to higher import costs for USA -based companies, and it's American consumers who are likely to bear the burden", she writes.

They are joined by a global Who's Who of leading economists who fear the results of 's plan to match China's tariff retaliation with higher trade taxes of his own. The same applies to potential USA job losses due to declining exports to China: they won't happen fast enough to have any impact on November's mid-term elections in the United States.

It would be unreasonable, however, to expect any effort to compel China to alter its unfair business practices to leave United States companies completely unscathed.

Trump rationalizes the move citing more jobs would be created and domestic economy would improve. "But, so far, China has been unwilling to change its practices".

China's richest man made the remarks in an interview with Xinhua news agency on Tuesday, saying the pledge made to US President Donald Trump is no longer feasible because of the unstable trade situation.

Brendan Rynne, KPMG Australia chief economist said rising tariffs by the United States and China would raise prices and reduce consumption by the two countries.

The world's biggest retailer has warned President Trump that his escalating trade war with China could force it to raise prices.

In a list of consumer products that could see immediate price hikes due to the tariffs, which will take effect on September 24, Walmart included gas grills, Christmas lights, shampoo, dog food, luggage, mattresses, handbags, backpacks, vacuum cleaners, bicycles, cable cords and air conditioners.

Other ways in which they can impact things come in the way of company profits, hiring, and overall growth. Officials have not confirmed if the US would be affected by the move.

In a research note, the esteemed economist explained that tariffs can have unintended consequences because global supply chains are so complex. Some of the exported parts are imported back to us in the completed cars.

All valid points indeed. "They still have many opportunities despite the trade frictions between China and the U.S.", Ma said.

Earlier, the Trump administration signaled that it might be willing to settle for a reduction in America's massive trade deficit with China, $336 billion previous year.

United States companies need to do more than complain anonymously about their poor treatment - and then subject themselves to it anyway.

Other reports by

Discuss This Article