During his campaign, Trump had a lot to say about China. Trump believes that Chinese products being imported to America is a big reason for unemployment in the United States. With the new tariffs on Chinese products, it seems that Trump is finally trying to bring jobs back to America. Flat screen TVs, medical devices, industrial supplies, and other products are among those that have up to a 25 percent tariff levied on them.
This is also in response to the White House investigation on Chinese officials using tactics like theft and intimidation to obtain American Technologies. There is now a trade war going on between these two companies when it comes to tariffs. China has now stated that it would put tariffs on over 120 different American products. Most of these terrorists will not affect retailers. Instead, these tariffs will be placed on parts for machines and other important products that manufacturers need to make American products.
There are many business groups that are very worried about these tariffs that Trump will be placing on Chinese products. A trade group, The Business Roundtable, has recently stated, “unilaterally imposing 50 billion of new tariffs without long-term strategy that leads to economic reforms in China will only hurt America’s businesses workers and families. Instead, the administration should work with the US allies on an approach that advances meaningful reform in China without imposing significant harm on America’s economy.”
The Auto industry has been greatly affected by the trade practices with China. However, leaders in this industry do not believe that tariffs are the way to fix the issues that they are dealing with. American businesses agree that a trade war between the world’s two biggest economies would prove to be very economically harmful.
The global financial markets have fallen as China has retaliated with their own tariffs. A better global trade agreement must be reached. It is important for leaders to understand the importance of trade relationships that will help both economies. United States’ largest exports include aircraft and aircraft parts. While Trump has set tariffs on many Chinese aircraft parts, industry giant Boeing is concerned that China may retaliate with similar tariffs.
These tariffs may also cause a great deal of upheaval to the rural farming communities in America. American pork farmers sent over $1 billion worth of pork products to China in 2017 alone. These tariffs could prove to be devastating for smaller farmers who count on these exports as a way of life.