Ok, what’s happening with all these tariffs?
In just the last month, a lot. Here’s a quick summary, put together by the Remke Team that will keep you in the know.
- In March, President Trump placed steel and aluminum tariffs on almost every country. He believes this will help US companies remain competitive or become more competitive internationally and on the domestic front.
- In response, China announced it would slap tariffs on 128 American products, including wine, pork, and pipes.
- In addition, President Trump laser focused on China, announcing plans for even more tariff in the near future.
- Those additional tariffs were announced on Tuesday, April 3rd, and apply to 1,300 Chinese products that amount to about $50 billion including:- flat-screen television
– medical devices
– aircraft parts and batteries
– machinery and high-tech components
- April 4th, China responded by announcing $50 billion worth of tariffs on major US exports like soybeans, planes, cars, beef, and chemicals.
China and the US are the world’s biggest economies.
This latest move is already spooking the market. And raising fears that the two are on their way to a full-blown trade war.
In recent Tweet, President Trump insisted, “We are not in a trade war with China, that war was lost many years ago by the foolish or incompetent people who represented the U.S.”
Reuters reports that U.S. Commerce Secretary Wilbur Ross told CNBC, “It wouldn’t be surprising at all if the net outcome of all this is some sort of negotiation.”
It remains to be seen how American consumers will experience the impact of the newly announced tariffs. Manufacturing Business Technology Magazine reports that Americans buy half-trillion dollars’ worth of good from China each year – the largest amount of imports from any one country. These tariffs mean that prices of many consumer products such as toys, clothes, shoes, and cell phones could increase very soon.