President Trump intends on enforcing plans to calculate a 25% tariff on imports from China after months of back-and-forth negotiation. Amid the products affected will be vehicles, technology, and animals/animal products. The purpose of the tariffs is to encourage China to rethink the way they work with the trade of technology in the hopes of reaching a balance between the two countries.
These tariffs will affect over 1,100 exports and target multiple industries; aerospace, robotics, manufacturing, medical, and automotive. China will invoke a tariff on $50 billion imports of automobiles and auto parts, planes, soybeans, agricultural and marine products starting the beginning of July, the 6th, to be exact. This cut will directly impact stores similar to Walmart and Sony that import products from abroad.
The president has instructed the Trade Representatives to add another $200 billions with of Chinese goods at a 10% rate in response to China’s intended retaliation. They will only go into effect if China refuses to change the piracy of U.S. Intellectual Property. China vows to scrap any previous promises to purchase more U.S. goods during negotiation with U.S. trade officials last month.
American companies have been given the option to apply for an exemption from the tariff after careful consideration from the administration. However, Trump recently announced his burden of taxes on steel and aluminum imports from Canada, Mexico, and the European Union. In which those countries have already promised retaliatory tariffs if they haven’t enforced them already.
More and more products and industries are feeling the impact of the taxes imposed by multiple countries. Among those listed include washing machines, automobiles, and parts. American products targeted by China, Mexico, Canada, India, and the European Union include denim, bourbon, whiskey, and agricultural commodities totaling around $17 billion. Shortly after this was announced, Russia and Japan have shown interest in executing tit-for-tat tariffs against the United States.
With a battle brewing between Republicans in Congress and the White House, there is some light shed on the situation in the hopes of talking Trump out of invoking any more tariffs on trade for other countries.