From seafood to mattresses: how the latest tariffs would affect US companies

The Trump administration sees the latest round of tariffs as necessary to protect vital US industries from Chinese competitors that it says are sheltered by Beijing's protectionist policies. He also decried China's habit of flooding world markets with goods – often made by state-owned companies – while erecting barriers to foreign competition and forcing any company seeking market access Chinese to form local joint ventures. a condition at the entrance.

Here is an overview of how American businesses might be affected by the proposed levies:

Seafood

The latest tariffs will levy duties on dozens of seafood varieties, including tilapia, salmon , cod and tuna. Some lawmakers and seafood groups have also called for the inclusion of crayfish, shrimps and other Chinese seafood products on a list of targeted products for tariffs, saying Chinese companies have abandoned substandard products at the same time. detrimental to local industries and American consumers.

The United States imported $ 2.7 billion worth of fish and seafood from China last year, according to federal data. Food manufacturers may have to pay more for many varieties commonly sold in supermarkets and restaurants in the United States, and consumers may also see higher prices.

John Connelly,

chairman of the trade group of the National Fisheries Institute. Connelly said US seafood producers are also facing China's retaliatory duties on Maine lobsters, New Jersey calamari and California squid, as well as cod, pollock and salmon. Alaska

-Heather Haddon and Jesse Newman [19659005] Chemicals

US chemical manufacturers argue that proposed tariffs could make raw materials more expensive while threatening access to a competitive market Key export. China has become one of the world's leading suppliers of basic chemicals, and the United States on Tuesday set potential tariffs on a wide range of products made in China, from pesticides to photographic developers. . These tariffs will increase costs for US companies that depend on imports of Chinese chemicals to create more complex products in the United States.

Ed Brzytwa,

International Trade Director for the American Chemistry Council. This could mean higher costs for farmers and consumers. The trade group estimates that about $ 9 billion of chemical exports are already exposed to retaliatory tariffs highlighted this spring by the European Union, China, Canada and the United States. ;other countries.

-Jacob Bunge

Switches and Routers

The proposed rates are for switches and routers, finished products that are used to set up wired and wireless networks. These products are a key infrastructure in the new technology, said Cinnamon Rogers, senior vice president of government affairs at the Telecommunications Industry Association, an industry trade group. The tariffs pose a competitive disadvantage for the US over China by making it more expensive for US companies to develop cloud services that require network connectivity, Rogers said.

Cisco Systems
Inc.,

among the largest manufacturers of switching and routing equipment, it did not answer questions about the impact of potential tariffs.

-Jay Greene

Automobiles and Parts

The latest rates would be for dozens of automotive products, including everything from legs and parts for gearboxes to brake pads and windshields. A 10% levy, if imposed, would likely increase costs for both manufacturers purchasing these parts and for factory-badembled vehicles, as well as for owners of vehicles requiring spare parts, Like Wiper Blades

] Handbags

The proposed tariffs target handbags, but the most exposed companies do not include major American brands such as Coach, Kate Spade and Michael Kors. These brands primarily produce leather handbags, and leather bags account for only about 27% of US imports of handbags made in China, according to Panjiva Inc.

Coach and Kate Spade, both owned by

Tapestry
Inc.,

have pushed China's production in the midst of rising costs of manpower.

Most of China's imports of handbags are made of plastic. These non-leather bags account for 54% of all handbag imports, or $ 540 million worth of products, according to Panjiva. These bags are largely sold in mbad stores under brands that are not last names.

-Suzanne Kapner

Semiconductors

Semiconductors and related products are among the most heavily impacted technology products. exports of machinery, components and electronics.

These duties were aimed at the young chip industry in China, a segment that Beijing wants to become a world power. But tariffs also require some US chip makers to participate in the complex supply chain in which manufacturing often begins in the US before the products are shipped to China for badembly, testing, and packaging, and then shipped back to the United States

Greene

Mattresses

Mattresses manufactured in China would be subject to tariffs, according to the latest list of proposed levies. The United States imported $ 1 billion worth of mattresses in the 12-month period ended May 31, and about $ 850 million was imported from China, according to Panjiva.

But many major mattress brands are produced domestically.

Tempur Sealy International
Inc.,

The largest US manufacturer says the mattresses that it sells in the United States are made in the United States. The company has more than 20 manufacturing sites in North America.

Even Online Vendors Such As Casper and Leesa

Rare Earth Minerals

Proposed tariffs include scandium and yttrium, two rare earth minerals whose defense companies are almost entirely native from China. The Pentagon's chief weapons buyer, Ellen Lord, has already described as "alarming" the US dependence on the Chinese rare earth reserves. Industry officials are expecting companies to defend an exemption to continue these purchases without customs duties.

is that China may seek to restrict supplies and delay regulatory approval of transactions. China also previously indicated that it could impose tariffs on some business jets.

-Doug Cameron

Mobile Phones

Tariffs – current and proposed – include certain components of mobile phones, such as semiconductors and cards. Mobile phones themselves, however, are not targeted. Finished devices manufactured in China such as iPhones, for example, are not among the products currently subject to US tariffs. US consumers may not fully escape higher costs. Some parts that could be used to repair mobile phones are reserved for new features, which could affect the US repair market.

-Jay Greene

Soy

The trade war weighs heavily on American soybeans Farmers. China's 25 percent soybean tax last week raised fears that tariffs would deprive US farmers of the world's largest soybean market. Since the beginning of June, oilseed prices have fallen 19% to their lowest level in 10 years. This undermines the incomes of US farmers already experiencing a multi-year recession in the agricultural economy and raises fears that US soybean exports to China will decrease by at least half, reducing production of United States of 15%.

In a tweet Wednesday, President Trump said he "still thought about our farmers," promising to fight "for a level playing field". Some farmers are giving President Trump the benefit of the doubt, saying that they are ready to absorb some economic losses if the US agricultural sector – or the economy as a whole – is stronger in the long run.

-Jesse Newman

Pieces of Equipment

The growing list of technological products covered by levies-some already priced, others on offer-includes many commonplace components of modern gadgets. These items include disk drives used in servers and storage devices, as well as printer and copier components, parts that most people would not usually buy from themselves. . But these parts come in the manufacture of products such as remote controls and vending machines. Rates on certain items, such as circuit board bademblies, could increase the cost of consumer electronics repairs. The list of tariffs proposed on July 10 adds to the collection items that would be taxed, including components such as television antennas and some parts for television receivers.

-Jay Greene

Dairy

Proposed US Tariffs on Chinese According to trade groups, goods do not directly affect dairy producers, but milk futures prices and cheese prices have fallen since Mexico and China have imposed retaliatory duties on US products in the last month. Mexico is the largest importer of American cheese and China is the leading destination for US whey by-products. Concerns are also growing that China may be retaliating with a new tariff package that includes key dairy exports that have escaped the previous package of duties imposed last week, including lactose and infant formula, according to the report.

Nate Donnay,

Director of Dairy Market Insight for INTL FCStone Financial.

-Heather Haddon

Solar Panels

The Trump Administration announced tariffs on solar cells and panels imported in January, levies primarily affecting Chinese manufacturers. Businesses cited tariffs, which start at 30% in the first year and drop to 15% in the fourth, due to rising solar power prices in the United States and slowing solar growth. But tariffs seem to achieve one main goal: boosting solar manufacturing in the United States

An badysis by GTM Research has shown that the prices of some distribution systems have gone from 98 cents per watt in the first half of 2017 to 1, 03 watt in the second half. Meanwhile, some companies are pursuing investment in solar manufacturing in the United States, the last being the North American subsidiary of South Korea.

LG Electronics
Inc.,

who announced last month that he was planning a new badembly plant for solar panels in Alabama.

-Erin Ailworth

Meat

The retaliatory tariffs applied by China and Mexico since this spring pork up to now taking the greatest success. US hog producers are now subject to a 62% duty on exports to China, which bought nearly one-fifth of the pork sold abroad last year. The National Pork Producers Council estimates that four of the ten pounds of US pork sold abroad now face tariffs, denoting a "financial crisis" for US hog producers. In May, they have already faced losses of $ 18 per pork, according to estimates from the State University of Iowa, and prices have dropped further since.

-Jacob Bunge

Sneakers

The shoe industry again dodged the escalating trade struggle between the United States and China, the sneakers being not listed in the latest set of tariffs. Yet the expanded list of functions will "hurt our economy and deprive the disposable income of consumers who could buy more shoes," he said.

Matt Priest,

CEO of Shoe Distributors and Retailers of America, the industry trade badociation. The vast majority of shoes sold in the United States are imported, and about 70% of imports come from China, according to the badociation. "While shoes were not part of this new price series," continued Mr. Priest in his release, "the US footwear industry is well aware of the negative impact of tariffs on consumer goods. "

-Sara Germano

Home Improvement

Plywood, carpets and tools are on the final list of proposed rates. Large US home improvement retailers do not import much of the wood and carpet products they sell, said executives familiar with the industry. Other items like grills, patio furniture, tools and equipment are often imported, they said. According to Panjiva data, the United States imported about $ 1.7 billion worth of tools and metal products from China, accounting for about 40% of total tool imports over the past 12 years. months ending in May. evaluate their ability to increase prices or absorb the cost by reducing margins, said a senior executive at a large retailer.

"If prices are pbaded on, we will do our best to find compensation and minimize the impact on consumers," said a spokesman for The Home Depot.

-Sarah Nbadauer