Who’s Getting Hurt By U.S. And Chinese Tariffs?

Who’s getting hurt by U.S. and Chinese tariffs?In a recent survey carried out, on the increase in U.S. and Chinese tariffs, 74.9% (almost ¾ths) of the survey respondents, claimed that because of these tariffs, there was a negative impact on their businesses. Around 1 in 5 of these survey respondents claimed that because of these tariffs, there was an increase in the amount of inspections and clearance by customs was much slower. Plus, as a result of these tariffs, there was also a decrease in the demand for products, as well as an increase in the costs of manufacturing.

The Impact Of U.S. And Chinese Tariffs

On May 10^th, tariffs on Chinese goods worth $200 billion, were hiked from 10-25%, by the US. China retaliated by levying duties on U.S. goods worth $60 billion, in the range of 5-25%.

According to a survey carried out by the American Chamber of Commerce in China,

“The negative impact of tariffs is clear and hurting the competitiveness of American companies in China.” The American Chamber of Commerce in China represents over 900 US companies that operate in China.

What Analysts Are Saying

Analysts have a lot to say on the U.S. and Chinese tariffs. According to Rutgers University economics professor, Thomas Prusa, “Increased regulatory enforcement, greater inspection of U.S. shipments, preferential treatment with respect to procurement, etc., can cause significant losses to U.S. businesses. Most observers underestimate the leverage China has with these other tools of trade policy.”

He further states, “Trump’s trade war is turning the world’s most productive farming sector into a giant welfare state as U.S. farmers will apparently receive (for a second consecutive year) massive government subsidies in order to stay in business.”

What China Has To Say

China declared that it would retaliate against U.S. tariffs and impose its own levies on goods of the US. On its official WeChat account, China’s Communist Party posted a bright red message that read, “This, is China’s attitude! Negotiate, sure! Fight, anytime! Bully us, wishful thinking!”

Hu Xijin, Editor-in-chief of The Global Times, a state newspaper with editions in Chinese and English, says on Twitter, “China’s decision to raise tariffs and US stocks’ fall have inspired Chinese society.”

The End Result Of U.S. And Chinese Tariffs

Oxford Economics, chief Asia economist, Louis Kuijs says, “The existing tariffs imposed on the US and China’s imports will not be lifted any time soon. The chance of further deterioration of bilateral relations has increased, with both sides planning further restrictions targeting each other’s companies.”

Wharton School, International Management Professor, Mauro Guillen says, “The Chinese domestic market will be much bigger than the U.S. market soon.”

What Does Donald Trump Have To Say?

This is what US President Donald Trump Tweeted on Twitter,

“I am a Tariff Man. When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so. It will always be the best way to max out our economic power. We are right now taking in $billions in Tariffs. MAKE AMERICA RICH AGAIN.”