Us China Tarriffs

March 23, 2018
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Number To Know:

$60 billion

Potential amount of Chinese imports to be taxed in U.S. new trade policy.

Are we on the verge of a trade war?

Flip For Why It Matters

Let’s Set The Stage:

  • China = Largest exporter in the world.
  • America = China’s largest customer.
  • We have a trade deficit (we take in more goods than we export); ChinaA has a positive tradeA balance (they export more goods than they import).

What Do You Buy From China?

A little bit of everything, but here’s the top 3 Chinese exports.
You’re likely using one right now.

  • Computers
  • Broadcasting Equipment (TVs, radios, wireless devices)
  • Telephones

Why Tax On China?

WH Wants Change – Says:

  • China cheats & steals from U.S – treats U.S. companies badly.
  • China targets American intellectual property through hacking and unfair business practices.
  • China’s trade policies threaten U.S. national security (for all of the above).

China’s Response

‘China does not want to fight a trade war, but it is absolutely not afraid of a trade war”
Chinese Govt Statement

  • Threatens $3B of taxes on U.S. imports.
  • 128 items potentially on the list including American pork, fruit & wine.

Click: More Details

What Does It Mean For You?

  • You may pay more – not just for imported Chinese goods but U.S. goods if China retaliates with a tax of it’s own.
  • Reminder: We are China’s #1 customer.A Some argue we should leverage our standing. After all,A isn’t the customer always right? But others say this is dangerous.

New White House Advisor

Pres. Trump named Amb. John Bolton as his new National Security Advisor (in April).A What Bolton says about U.S./China relations:
“I just don’t understand why being a punching bag is the right response. I think if you get the attention of some of these violators you might move towards real free trade.”

Watch Now

Perspective

‘We don’t know how this is going to turn out. It could be resolved in a few months, or it could spiral out of control into a broader strategic rivalry.”



Scott Kennedy, Dir – Project on Chinese Business, Center for Strategic and International Studies, Washington Post, March 22, 2018

We will know more in 2 weeks about what goods make theA tariff list. InA the meantime, the Dow plunged 700 points because of nervous investors. Interesting to note some usual critics of Pres. Trump support him – and some of his fellow Republicans disagree. Check it out:

by Jenna Lee,

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