Trump's plan of rolling out Chinese tariffs this week will backfire, according to US businesses that will ultimately bear the brunt of these latest deals. They said that these tariffs will not solve America's problems and, instead, add to them.
This announcement came as the 25 percent trade tariff on Chinese goods the Trump Administration promised to come into effect. CNN reports that these tariffs will effectively slap 25 percent of extra duties on Chinese goods, and this will eventually become a war of attrition. China, for its part, will retaliate with 25 percent tariffs of its own on American exports.
These new tariffs were protested by companies and industries that are about to get affected by it. In July, these companies went before the US Trade Representative's Office to testify. They rely on some or all of the 279 Chinese products that will be slapped with extra duty; these include antennas, chemical products, and vehicle components, while the Chinese tariff hits chemicals and diesel fuel, for one.
Initially, the Trump Administration issued these tariffs on essential products composed of Chinese seafood as well as chemical products, plastics, furniture, and lighting products. These will basically be hit with tariffs in September, even as the new round of tariffs is discussed.
While the tariffs are harmful, the Trump Administration thinks otherwise. US president Donald Trump issued them in defense of what he says are 'US businesses in danger.' They are supposed to protect American consumers and, instead, force the Chinese to follow American regulations. CNBC says that Trump made these to protect American businesses and interests from folding.
These will be part of the six-day discussion, which seeks to impose the duties properly on the products. It is the Trump Administration's earnest hope that, with these tariffs, the Chinese may eventually succumb to pressure and come back to the discussion table. It is then that the US will enact trade policies that are in its favor.
Some businesses are arguing, however, that it will eventually do more harm than good. One business pointed out that it will be harder to secure raw materials because of this. Another said that, with the extra price, exporting goods needed to create their products will make them raise their prices, thereby passing on the tariff effect to consumers.
