Why Counterfeit Wine Matters | The Knock-On Effect #21 | Real Vision™


Not just consumers facing pain

Trump china tariffs Skye Gould/Business Insider

  • President Donald Trump on Friday imposed a 25% tariff on billion worth of Chinese exports to the US.
  • The tariffs apply mostly to machinery and industrial goods.
  • But industry groups warn that American consumers will still pay the price because US manufacturers will pass on increased costs to customers.

President Donald Trump argues that new tariffs on billion worth of Chinese goods are designed to protect US businesses and force China to change its economic policy. But many industry groups say American consumers are likely to bear the brunt of the trade fight.

While less than 1% of the goods subject to the tariffs are consumer goods, the list of products targeted includes machinery that does everything from cutting metal to measuring electrical currents to incubating chickens. US businesses rely on these products to make their goods, which are eventually sold to US consumers.

More expensive equipment and parts means US businesses will see costs rise. In turn, they can pass on the increased costs to consumers or shrink costs in other areas — for instance, by laying off workers. Most experts say businesses are likely to use some combination of these two options.

So while the 25% tariffs, imposed Friday, may not result in an immediate price hike at the checkout line, many industry groups warn that Americans will still see changes:

  • National Retail Federation:"With tariffs against China taking effect, American consumers are one step closer to feeling the full effects of a trade war," Matthew Shay, the federation's president and CEO, said in a statement Thursday. "These tariffs will do nothing to protect US jobs, but they will undermine the benefits of tax reform and drive up prices for a wide range of products as diverse as tool sets, batteries, remote controls, flash drives and thermostats."
  • Consumer Technology Association:"While President Trump says his trade policy is meant to punish China, the numbers show that, in reality, US businesses, workers and consumers will pay the price under this policy," said Sage Chandler, the group's vice president for international trade. "Of the original billion in tariffs on China, items including lithium batteries, navigation devices, disk drives and circuit board components will be affected — hitting .2 billion worth of Chinese imports."
  • North American Food Equipment Manufacturers:The tariffs could even trickle down to the cost of fast food, Charlie Souhrada, a vice president of the group, . While Trump's duties do not apply to food products, Souhrada said the NAFEM member Henny Penny expected the tariffs to increase the price of its pressure cookers, which are in turn used by chains like Chick-fil-A to make food.
  • National Association for Manufacturers:"Tariffs will bring retaliation and possibly more tariffs," said Jay Timmons, the association's president and CEO. "No one wins in a trade war, and it is America's manufacturing workers and working families who will bear the brunt of continued tariffs. Manufacturers in the United States succeed when the rules are clear and fair and markets are open."

While Friday's tariffs are likely to hit US consumers eventually, Trump's threat to impose tariffs on another 0 billion worth of Chinese exports to the US could result in more direct pain for them.

Not just consumers facing pain

US consumers may eventually see higher prices on shelves, but there's a second negative trickle-down effect. Many businesses count China as a major export destination, and the retaliatory tariffs imposed by the Chinese government on US products could similarly increase prices in China and hurt sales.

For instance, China's 25% retaliatory duty on whiskey could harm US producers, according to the Distilled Spirits Council.

"Imposing 25 percent tariffs on US whiskeys could put the brakes on an American export success story," Christine LoCascio, a senior vice president for international trade at the council, said in a statement. "American spirits exports to China have grown by almost 1,200 percent, from 9,000 in 2001 to .8 million in 2019."

Distillers are worried that retaliatory tariffs — not only from China, but from Europe and Canada as well — could stunt their sales and slow expansion and hiring plans.





Video: DR. ERIC THOMAS | YOU OWE YOU

Not just consumers facing pain
Not just consumers facing pain images

2019 year
2019 year - Not just consumers facing pain pictures

Not just consumers facing pain forecasting
Not just consumers facing pain recommend photo

Not just consumers facing pain images
Not just consumers facing pain pics

Not just consumers facing pain Not just consumers facing pain new images
Not just consumers facing pain new picture

images Not just consumers facing pain
foto Not just consumers facing pain

Watch Not just consumers facing pain video
Watch Not just consumers facing pain video

Communication on this topic: Not just consumers facing pain, not-just-consumers-facing-pain/
Forum on this topic: Not just consumers facing pain, not-just-consumers-facing-pain/ , not-just-consumers-facing-pain/

Related News


Altuzarra FallWinter 2014-2015 Collection – New York Fashion Week
Make A Bread-Free Grilled Cheese
Can Food Put You in a Happier Mood
How to Dry Herbs in the Oven
Beyoncé Dispels Pregnancy Rumours As She Returns To The Stage
The Best New Compact Foundations
Housing affordability seen as boogeyman making American dream tougher
How to Remove a Fishhook from Skin
5 Pairs Of Tailored Shorts For Spring 2015
26 Summer Wedding Favors That Won’t Break The Bank
Orlando International Airport in Florida sets up a giant Christmas tree in the center of the airport
16 Celebs Who Have Spoken Out Publicly About Gun Control
How to Prevent an Anxiety Attack Before It Hits You
Are Hospital Births Becoming More Home-Like
Samsung president Young Sohn: we should really worry about ethics in artificial intelligence




Date: 09.12.2018, 22:09 / Views: 62295