China has announced new tariffs of 10-15% on select US imports, effective March 10th. These tariffs will target key US exports such as chicken, wheat, corn, and cotton, further escalating the ongoing trade tensions between the two nations, reports The Economic Times.
Increased Tariffs
China has announced increased tariffs on a range of US agricultural products. Chicken, wheat, corn, and cotton imports will face an additional 15% tariff. Sorghum, soybeans, pork, beef, seafood, fruit, vegetables, and dairy products will have a 10% tariff increase.
Concurrently, China added 15 US companies to its “unreliable entities list.” This designation could restrict these companies from participating in China-related import/export activities and from making new investments in the country. Bloomberg reported that the Ministry of Commerce indicated at least 10 of these companies are involved in defense work. The 15 firms added to the list include defense contractors General Dynamics Land Systems and Skydio Inc.
Trade War Rekindled?
The US implemented significant new tariffs on imports from China, Canada, and Mexico just after midnight on Tuesday. These actions raise US tariffs to historically high levels and are causing concern among businesses and foreign governments. The Trump administration imposed a 25% tariff on all imports from Canada and Mexico and increased existing tariffs on Chinese goods by an additional 10%.
The White House stated that these tariffs are part of a strategy to restructure US trade relationships. President Trump suggested that companies could avoid tariffs by relocating production to the United States. However, experts warn that these measures could disrupt global supply chains and increase costs for American consumers.
Economic Impact
Analysts warn that the newly implemented tariffs could severely impact economic growth in North America. Cornell University public policy professor Gustavo Flores-Macías emphasized the potential for lasting negative repercussions, noting that while the US economy is larger, simultaneous trade conflicts with its three main trading partners will negatively affect everyone involved.
The manufacturing sector is already experiencing strain. Brian Bryant, President of the International Association of Machinists and Aerospace Workers, criticized the tariffs, saying they will disrupt integrated supply chains and harm workers on both sides of the border. Gary Shapiro, CEO of the Consumer Technology Association, echoed this concern, stating that tariffs are ultimately taxes on American consumers and businesses, not foreign entities.
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Source: The Economic Times
