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Thread: 8/22/18 US & China 25% new tariffs on $16B of each other's goods.

  1. #1
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    8/22/18 US & China 25% new tariffs on $16B of each other's goods.

    Effective August 22, the US is imposing 25% tariffs on 279 product categories from China, including semiconductors, plastics, chemicals, railway equipment, etc. Supply chains of American businesses from this day onward will be affected by cost increases due to the new tariff. It remains to be seen to what extent the cost increases will be passed along to consumers. In my opinion, higher prices are inevitable.


    China retaliated by applying new 25% tariffs on 333 product categories from the USA, including coal, copper scrap, fuel, steel products, buses, medical equipment, etc.


    US Commerce Secretary Wilbur Ross said about China: They're not going to give that up easily. Naturally they'll retaliate a little bit. But at the end of the day, we have many more bullets than they do.

  2. #2
    Senior Member flowerseverywhere's Avatar
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    It will be interesting o see how this trickles down. I was talking to a quilt shop owner yesterday and she remarked how almost all of their stock comes from China. Amazon and Walmart are full of made in China products. Can American manufacturers fill the void? It seems unlikely to me and we have become accustomed to cheap goods resulting from low wages in China. Manufactured in the us will undoubtedly be much more costly.

    Perhaps those that that will feel it hardest are farmers. They can operate on a pretty slim margin, depending as they do on the weather. But the bigger question is what are they going to get us?

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    Trek Bicycle Company, of Waterloo, Wisconsin, has predicted that the 25% tariff will increase their cost of goods sold by $30 million.

    "Trek will be forced to pass these costs on to the consumer." Trek's Vice President for Marketing and Supply Chain, Roger Gierhart, testified that higher prices will result in fewer sales of the company's products domestically.

    https://www.bicycleretailer.com/site...rt_8-10-18.pdf

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