Looming $200bn US Tariffs on China to Hurt American Consumers First - Report

© AP Photo / Color ChinaIn this Monday, Aug. 13, 2018, photo, a man stands near a poster depicting a mural of U.S. President Donald Trump stating that all American costumers will be charged 25 percent more than others starting from the day president Trump started the trade war against China, on display outside a restaurant in Guangzhou in south China's Guangdong province. The recent trade war between the world's two biggest economies has forced many multinational companies to reschedule purchases and rethink where they buy materials and parts to try to dodge or blunt the effects of tit-for-tat tariffs between Washington and Beijing
In this Monday, Aug. 13, 2018, photo, a man stands near a poster depicting a mural of U.S. President Donald Trump stating that all American costumers will be charged 25 percent more than others starting from the day president Trump started the trade war against China, on display outside a restaurant in Guangzhou in south China's Guangdong province. The recent trade war between the world's two biggest economies has forced many multinational companies to reschedule purchases and rethink where they buy materials and parts to try to dodge or blunt the effects of tit-for-tat tariffs between Washington and Beijing - Sputnik International
Subscribe
US
India
Global
China runs up huge surpluses in consumer goods in trade with the United States, statistics reveal. The household shopping bills of American consumers are expected to increase if the US goes ahead with its threat to impose $200 billion in tariffs on Chinese imports in an ongoing trade dispute.

The consequences of a large-scale US-China trade war could be much tougher for American households than for Chinese ones, says a report by the South China Morning Post.

Thursday marks the end of a public comment period on possible 10 percent US tariffs on $200 billion of Chinese imports, which could become the biggest blow yet in the huge trade spat between the two economic giants.

However, such a move is understood to drain the purses of American shoppers, as US import tariffs target Chinese-made consumer goods, from refrigerators and freezers to cutlery and towels, prompting manufacturers to increase prices to make up for the losses.

READ MORE: China Reducing US Oil Orders, Likely to Consider Alternate Suppliers – Economist

Beijing, in turn, has threatened to hit back at the possible move with increased levies on S$60 billion of US imports, including on yachts, riding crops, and false beards. "Mostly, it's going to be absorbed by Chinese corporates instead of consumers," Larry Hu, an economist with Macquarie Securities, said, as cited by the SCMP. "At the bottom line, the direct impact is very small."

According to government data, the United States posted a $335 billion trade deficit with China last year. US imports of goods from China stood at $505 billion and largely included tech products, household furnishings and clothing.

India Prime Minister Narendra Modi (L) gestures while talking with China's President Xi Jingping during the BRICS leaders' meeting with the BRICS Business Council at the Taj Exotica hotel in Goa on October 16, 2016 - Sputnik International
India is Drifting Closer to China Due to Trump's Whimsical Policies – Professor

China imported $130 billion worth of American products, including soybeans, aircraft, machinery and plastics, which means that China has comparatively fewer US imports to tax. This would lead Beijing to seek other retaliatory measures, including the tougher regulation of US businesses in China, which wouldn't directly affect consumers.

The trade conflict between the two countries escalated after the United States adopted a protectionist posture on trade and slapped tariffs on $34 billion in steel and aluminum imports from China. The Asian nation has promptly counterpunched with tariffs on the same value of US imports.

On July 10, the Trump administration revealed that it would slap 10 percent tariffs on some $200 billion in Chinese goods as a follow-up to China's retaliation. US Trade Representative Robert Lighthizer said in a statement that the move was considered to curtail the alleged theft of US intellectual property by Chinese firms. The Chinese government has warned it would hit back with trade restrictions of equal measure if Trump goes ahead with the threat.

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала