How New Tariffs Are Impacting US Businesses
Rumblings of a trade war between the U.S. and China started in January when President Trump imposed tariffs on solar panels and washing machines.
Since then, things have escalated.
On Friday, President Trump told CNBC that he’s prepared to place tariffs on all $505 billion of Chinese imports. And China, who’s been matching U.S.-imposed tariffs tit-for-tat, might not be able to reciprocate.
How are new tariffs impacting American businesses? According to The Wall Street Journal, it depends on the type of business.
In the auto industry, for example, the idea of tariffs has been met with widespread opposition.
But in states that rely on agricultural exports, public opinion is less unanimous. A Brookings Institution analysis shared by The Washington Post says the 15 states with the highest share of jobs at risk in the trade war are Arkansas, Iowa, Nebraska, Alaska, Idaho, Mississippi, Washington, Kentucky, South Dakota, Alabama, Delaware, Michigan, Indiana, Wisconsin and North Dakota. And according to a Washington Post poll, Trump’s approval rating in those states is 52 percent — up 5 percent since the 2016 election.
…things up, better than ever before, but it can’t go too quickly. I am fighting for a level playing field for our farmers, and will win!
— Donald J. Trump (@realDonaldTrump) July 11, 2018
From The Washington Post:
While most economists have urged Trump not to pile on more tariffs because the effects on jobs and the economy could be detrimental, they acknowledge that the impact to date has been modest. The average cost to a family so far is about $80 more a year, according to Mark Zandi, chief economist at Moody’s Analytics. That $80 bump would be hard to distinguish from the normal rise in prices that typically occurs.
The tariffs are thought to likely become more detrimental the longer they’re in place, so how will this economic battle play out for American businesses? And which industries will be impacted most?
Here’s an interactive timeline of the trade war from The New York Times.
*Show produced by Danielle Knight, text by Kathryn Fink*.
Shawn Donnan, World trade editor, covering international economics for Financial Times; @sdonnan
Chad Bown, Senior fellow, Peterson Institute for International Economics; co-host of “Trade Talks” a weekly podcast about the economics of trade policy; @chadbown
Michelle Erickson-Jones, Fourth-generation farmer in Broadview, Montana; president, Montana Grain Growers Association; member, Farmers for Free Trade; @bigskyfarmher
Bryan DeHenau, President, BCD Construction LLC, a licensed building company located in the greater Detroit metropolitan area, Michigan
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