President Donald Trump first proposed a new set of tariffs on consumer goods imported from China earlier in the year. However, yesterday Trump has impulsively renewed the tariffs. He took to Twitter to complain that the Chinese government had not fulfilled its trade promises. Trump, in turn, threatened to retaliate with an additional 10 percent tariff from the first day of September.
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In his tweet, Trump said, “We thought we had a deal with China three months ago, but sadly, China decided to renegotiate the deal prior to signing. More recently, China agreed to buy agriculture product(s) from the US in large quantities, but did not do so.”
Our representatives have just returned from China where they had constructive talks having to do with a future Trade Deal. We thought we had a deal with China three months ago, but sadly, China decided to re-negotiate the deal prior to signing. More recently, China agreed to…
— Donald J. Trump (@realDonaldTrump) August 1, 2019
He continued by saying, Trade talks are continuing and during the talks the US will start, on September 1st, putting a small additional tariff of 10 percent on the remaining 300 billion dollars of goods and products coming from China into our country.”
…during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%…
— Donald J. Trump (@realDonaldTrump) August 1, 2019
Trump proposed a 25 percent tariff on these same Chinese goods. A lot of tech companies will be affected by this tariff. This is because consumer tech companies depend largely on Chinese manufacturing.
Meanwhile, this 25 percent tariff has been estimated to add $70 to the cost of every cell phone entering into America from China. iPhone will also be left vulnerable as most of its products are produced in China.
Sony has also warned that it will have to raise the price of Play Stations if the tariffs are imposed. It already looks like the consumers will be on the receiving end of the tariff.
However, the details of how the tariffs will be implemented are yet to be made clear.
