There are arguments for and against increasing tariffs on goods imported from China to narrow the US trade deficit with emerging economic giant.
Trump has announced his plan to increase tariffs from the current 10% to 25% this coming Friday. The result of stalled trade talks.
Regardless of the effect on the trade deficit American consumers will pay more for goods imported from China. While US importers of Chinese goods pay the tariffs it is the American consumer that ultimately sees the increase in their cost of living. Businesses simply pass the increased costs on to consumers.
President Trump tweeted on Sunday that tariffs on $200 billion of Chinese goods will be raised from 10% to 25% on Friday, as trade talks between the U.S. and China progress “too slowly.
“For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate.”“No!”