[ad_1]
In a gesture of goodwill, President Trump announced Wednesday that he was delaying the planned 25% to 30% tariff increase on China's $ 250 billion imports to come into force. October 1st. The new rate increases will begin on October 15. Trump said he was taking this step at the request of Chinese Vice Premier Liu He; October 1st marks the 70th anniversary of the People's Republic of China.
China may have paved the way for the opening of a trade truce in anticipation of the planned talks as it has also shown its willingness to waive tariffs on US goods as of September 17.
The slight reprieve may not be comforting for US companies that have had to deal with commercial uncertainties. Trump's pricing policy cost US businesses $ 6.8 billion in July, an increase of 62 percent over the same period last year, according to Tariffs Hurt the Heartland, an alliance of more than 150 associations representing all sectors of the US economy.
Despite assurances from Trump and White House commercial advisor Peter Navarro that China bears "all the burden" of these tariffs, US companies pay the highest tariffs in history and that the painful financial reality will only worsen if Trump responds to his threats. other rates.
The $ 6.8 billion in business paid in July reflects only the 10% to 25% tariff rate increase on May 10 on imports of $ 250 billion from China. Trump has threatened two rounds of additional prizes. On September 1, Trump's order to impose 15% tariffs on imports of about $ 112 billion from China was passed. And on October 15, Trump plans to apply 30% tariffs on the $ 250 billion of Chinese goods currently tariffed at 25%.
"These historic rate increases are a source of significant uncertainty for US employers, resulting in lower investment, higher prices and fewer job opportunities," said a statement spokesman for the organization "Tariffs Hurt the Heartland", Jonathan Gold. "You can not budget for a double-digit rate increase, and you can not plan a business if you live tweet-by-tweet. The administration must use the upcoming negotiations to end a trade war that really has no winner. "
In June, US companies paid $ 6 billion in tariffs, up 74 percent from the same period in 2018. Trump's tariffs cost them $ 3.4 billion.
Loss of jobs
The uncertainty surrounding the trade war and its outcome has led companies to reduce hiring and potentially threaten the record unemployment rate, one of the few positive economic benchmarks that Trump can point to. Moody's Analytics estimates that Trump's pricing policy has already cost the US economy 300,000 jobs and could reach 450,000 jobs later in the year once the additional tariffs take full effect.
The retail, manufacturing and agriculture sectors were the most affected. The manufacturing sector contracted for the first time in three years and the August employment report reflected a drop of 11,000 retail workers. China's retaliatory tariffs on US-made products have resulted in a 13-month decline in exports compared to the same period last year.
Taxpayers burden
Rates Hurt the Heartland estimates that the trade war between China and China has cost the United States more than US $ 30 billion in additional import duties since the start of the trade war until July.
A recent report from the National Foundation for US Policy Rates estimated that the cost of these tariffs would be more than $ 2,000 per year for US households by 2020.
More from Sibile:
Why a Trump tax break is no longer a winning campaign strategy
Trump's hopes of recovery could be frustrated by Congress, the 2020 policy
For the first time since the election of Trump, more and more voters say the economy is deteriorating
Why more than half of millennials are denied credit
Why Trump's immunity from big market losses is causing problems for Wall Street
Read the latest financial and commercial news from Yahoo Finance
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn,Youtube, and reddit.
[ad_2]
Source link