What do China's new tariffs mean to you?



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As trade talks continue, Chinese President Xi Jinping and President Donald Trump have been imposing a wave of new tariffs for more than a year. Nobody wins. Companies, and therefore consumers, in both countries are feeling the effects.
Friday, Beijing has threatened new taxes on $ 75 billion of US products. This decision was in keeping with Trump's promise earlier this month to charge $ 300 billion worth of Chinese goods – although he gave in and agreed to stick to December to avoid touching Christmas shoppers in the United States.

"I think these new Chinese tariffs are meant to send a signal more than anything else," said Phil Levy, a former economist in charge of trade under President George W. Bush and currently chief economist at Flexport, a privately owned company. freight transport.

Here's the latest news and what it means for American businesses and consumers.

Who will feel the new Beijing rates?

On Friday, Beijing announced that it would hand over tariffs on cars and trucks manufactured in the United States.
These rates will not be a blow to the US industry. They will penalize US companies only for vehicles manufactured in the United States and exported to China. Ford (F), for example, exports more cars to China than General Motors (GM) Is.

But they will appeal to companies that send cars and trucks made in the United States to China. In 2017, about 15% of US auto exports, worth about $ 9.5 billion, were sold in China. The Association of Global Automakers, which represents international carmakers with factories in the United States, immediately issued a statement Friday stating that Beijing's tariffs would cause a sharp drop in exports.

"If these tariffs come into force and remain, US jobs are under threat, no question," said John Bozzella, president and CEO of the automakers group.

Chinese retaliation hurts US companies

The tariffs imposed by Beijing make it more expensive for Chinese consumers to buy certain products made in America. The tariffs are intended to harm US companies exporting to China.

Beijing already applies tariffs on US exports of about $ 110 billion, which include products such as almonds, chemicals, toys and machinery. If the new tariffs come into effect as planned, most US products sold in China will likely be subject to duties.
At the same time, China is reducing tariffs on goods from other countries, making products made in the United States even more expensive compared, according to the Peterson Institute for International Economics.
Some of the new Chinese tariffs will be imposed on 1 September and the others will come into force on 15 December, along with Trump 's latest tariff threat.

Tariffs also hit farmers, who are already suffering

Some agricultural products are on the new list, but it would be difficult for China to inflict more suffering than the American farmers. Sales of soybeans grown in the United States in China have essentially stopped since Beijing imposed tariffs on them last year. As a result, farmers get a much lower price for their beans and end up stocking a record amount in stock at the end of last year 's crop.
China also applies tariffs on beef, wheat, maize, apples, cherries and peanuts.

Target Trump's base

Beijing knows that farmers and manufacturers are politically important to Trump. China and the European Union have applied tariffs on whiskey – made in red states like Tennessee and Kentucky, the home country of Republican Senate Majority Leader Mitch McConnell. European tariffs were put in place in retaliation for Trump 's rights on steel and aluminum manufactured abroad.

The situation could worsen for US consumers

Trump's tariffs on products made in China make them more expensive for US buyers. As he moves forward with his next round, the rates will begin to affect consumer goods such as iPhones, laptops, sneakers and clothing. A significant portion of these items sold in the United States are made in China.

Starting Friday, the administration planned to apply a tariff on September 1 on some of these goods and December 15 on the remaining items, so as not to make some holiday gifts more expensive.

Once in effect, these new fees could cost the average American family $ 1,000 a year, according to an estimate by JPMorgan Chase.

Other consumer goods, including luggage, baseball caps and bicycle parts, have already been hit by customs duties. US buyers may have been less aware of this, however, as the first series mainly concerned industrial materials and components used by manufacturers.

Correction: An earlier version of this article incorrectly characterized Ford's exports to China.

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