US malls are full of Chinese products. Now US President Trump threatens China with further tariffs. The effects should probably soon be felt by consumers.
A Saturday in a US mall, and China is omnipresent: In the shops are found pressure cookers „Made in China“. Just like drills, small heaters, laptops and tablets, clothes of big brands, purses, birthday cards, toys, scooters, crockery. Even shampoo imports the United States from the People’s Republic.
Northwestern University’s Professor Phil Levy fears that customers will soon be struck by the consequences of the escalating commercial dispute: „Consumers will find that trading with China has benefited them, many things they buy, be it clothes or cheap kitchenware, are affordable because they come from China. “ If special duties of 25 percent are due, importers and traders can no longer compensate. „The costs go to the consumers, they have to pay for it,“ said Levy.
Authority submits details on Monday
With talks not progressing, Trump has instructed his Trade Representative to prepare higher taxes for imports that were previously left out of the trade dispute. On Monday, the authority wants to submit details.
Trump finds support in his own party. Although Republicans, such as Georgia’s Barry Loudermilk, would otherwise stand for free trade on every occasion. „It’s right that the president does not give in to the Chinese, he makes decisions to bring the other side to the table, to which others were unwilling,“ said Loudermilk. The trade agreement should be of benefit to the United States and to US producers and consumers. „It is a pity that it had to come to that, but he has to go through this now,“ Loudermilk regretted.
High trade deficit
From the point of view of the US administration, trade with China has the major disadvantage of a trade deficit. This costs the United States $ 500 billion a year. A solution is not in sight. The US accuses China of wanting to delete crucial passages in a 150-page compromise draft.
The president relies on escalation in the situation. It is unclear whether the threat of additional special tariffs will actually make progress, said Professor Levy. He was a trade advisor during the term of President George W. Bush. „For China, it will be very difficult to give in and face at the same time as we look at the threats that are in the room.“ Trump showed almost no intention to waive customs duties, „even if he closes a trade agreement for which he makes himself so strong,“ said Levy.
US hope for China’s pledges
The Trump administration apparently wants to use trade restrictions until it is certain that China is also committed. Should both sides sign an agreement once. Until then, there was an easy way to avoid tariffs on imports, the president wrote on Twitter: „Produce your products in the good old United States.“
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The tweet is likely to be popular with many Americans.
