Trade war escalates: China, US to raise tariffs
The escalating trade war between the U.S. and China will require import and export supply chains to plan accordingly for a shift in costs, supply and demand.
On the export side, China’s list of products that would face 25% tariffs includes animal and food products, minerals, fibers, machinery, toys and furniture. Although retaliatory tariffs from China have less of an impact on the U.S. economy than U.S. tariffs on Chinese goods, the agriculture industry faces significant risk. Higher duties on animal and food products could make U.S. exports of these goods less appealing to Chinese buyers, creating even higher stockpiles for farmers and lowered prices.
On the import side, implementing tariffs on the remaining $300 billion worth of goods from China would affect nearly every industry that imports anything from China, from a small component to a finished product.