US, Chinese tariffs officially take effect as trade war escalates

Понедельник, 02 Сен, 2019

"That hasn't changed. We can't allow China to rip us off more as a country", Trump said on Sunday.

In addition to tariffs, personal income growth in U.S.is also showing signs of slowing.

A woman shops for Chinese made shoes, August 24, 2019, at a store in the Chinatown area of Los Angeles.

Starting Sunday, 98% of goods coming in from China will be tariffed.

China retaliated Sunday with its own tariff plan taking effect at 12:01 p.m. local time. But in fact, economic research has concluded that the costs of the duties fall on US businesses and consumers. The American Apparel and Footwear Association has said that more than 90 percent of apparel, almost 70 percent of home textiles and more than half of footwear imports from China will be affected by the levies that come into effect on Sunday.

The Trump administration imposed 15 percent tariffs on more than $125 billion in Chinese goods, including shoes, clothing and many household appliances like coffee makers, toasters and microwaves.

American companies, which seem frustrated with the administration's trade war with China, are now scrambling to limit their exposure to China, in some cases shifting production other countries such as Vietnam, to avoid tariffs that will soon reach as much as 30%, The New York Times reported.

These products include $50 billion worth of largely nonconsumer goods, including machinery, electronic components including semiconductors and printed circuit boards, and chemicals.

The levies are on more than 3,200 goods including LCD TVs, watches, and furniture.

FILE - A woman uses her smartphone as she walks past a display for the Apple iPhone XR in Beijing, May 14, 2019.

The additional 15 per cent tariffs would affect a portion of the US$300 billion in goods from China that so far have been spared.

Americans for Free Trade, a coalition of 150 businesses, is urging President Trump to postpone the tariffs, saying they "could represent one of the largest tax increases in American history". If those duties take effect, virtually all goods imported from China will be covered.

FILE - A grain salesman shows soybeans in Ohio, April 5, 2018.

"Trump's actions will affect almost everything Americans purchase from China", the report released in late August warned.

For the first time since Trump launched his trade war, American households face price increases because many US companies say they'll be forced to pass on to customers the higher prices they'll pay on Chinese imports.

The United States and China on Sunday put in place their latest tariff increases on each other's goods, potentially raising prices Americans pay for some clothes, shoes, sporting goods and other consumer items before the holiday shopping season. It'll also resume an extra 25 percent duty on cars imported from the United States on December 15. -China trade negotiations were gaining momentum.

In earlier rounds, President Trump slapped 25% duties on $250 billion of Chinese products, but those were mainly machinery and industrial materials and parts.

US business groups say progress in upcoming talks, if they are held, could put off the tariffs that have yet to take effect - and help improve the climate for a deal.

The US is predicted to launch a second spherical of 15 p.c tariffs on about $160 billion of Chinese language items on December 15 that can goal toys, cellphones and laptop computer computer systems. Chinese-made rosaries and religious medals, however, will still be hit with 15% tariffs on September 1.