By Farrah Khan
The United States and China tariff war is still in full effect. The recent negotiations between China and the United States have moved President Donald Trump to increase tariffs to $200 Billion worth in goods imported from China and extract concessions to the contract. This was a complete surprise to China and to the industries most affected by the tariff increase.
The new tariffs are to be in effect Friday, May 10th at 12:01AM. Targeted exports’ tariffs will be increased from 10-25% depending on the industry. The new tariff prompts reproach from China given the already intense negotiations taking place by both parties.
Companies and consumers on the other hand are worried about price increases on goods that come from China. Apple, who is known for escaping tariffs on their China-assembled phones will be greatly affected by the new tariff and will need to cater for the loss in cost savings. Industries such as Agriculture, Automotive and American Apparel and Footwear will be affected by the new tariffs as well, highlighting the very possible increase in prices for consumers to purchase these items.
Although both parties are eager to come to an agreement, there is a chance that these tariffs may be in effect for much longer and even set the tone for the US economy and its challenges.
Read the full article on CNN here.