US tariffs on Chinese goods to take effect Midnight on Thursday
The tariffs on thousand of Chinese goods by the US Government will take effect by midnight on Thursday.
The move is expected to cause a trade war between the World’s leading economies, as China has announced it will respond in kind should the tariffs take effect.
This is part of Trump’s campaign promise to curb the excesses of countries like China who he believes are treating the US unfairly when it comes to trade.
Even without the dispute that is likely to take place should the tariffs go into effect, the American Economy is already being affected by it as there are now punitive measures in place foe steel and aluminum which is resulting in high prices for these commodities. Some companies are also beginning to lay off staff for the same reasons. Mid-Continent Nail Corporation in Missouri has already laid off workers and has threatened to even shut down operations immediately.
The US plan initially involved 25% tariffs on goods worth $50 billion. But the list was trimmed down $34 billion after some companies requested exemptions. The tariffs will hit Chinese goods like Passenger vehicles, radio transmitters, aircraft parts, and computer hard-drives.
China has said it would retaliate in kind. The country plans to place tariffs on nearly $30 billion in US goods, which will also take effect on Friday. It plans to hit food products like soybeans.
Trump has also threatened to jack up the tariffs to goods worth $450 billion – almost the total of Chinese export to the united states, should China retaliate. The administration has also threatened to increase its scrutiny of Chinese products and businesses.
This has a potential of not only derailing both economies, but the global as well, as it can result in protectionism and many countries barring imports generally. Many American businesses have also raised their voices against the move as they believe it would only hurt indigenous companies in the country.