Trade War: How it affects the average American

A steel factory in Dalian, China
A steel factory in Dalian, China

·         Statement by the President Regarding Trade with China

“In light of China’s theft of intellectual property and technology and its other unfair trade practices, the United States will implement a 25 percent tariff on $50 billion of goods from China that contain industrially significant technologies.  This includes goods related to China’s Made in China 2025 strategic plan to dominate the emerging high-technology industries that will drive future economic growth for China, but hurt economic growth for the United States and many other countries.  The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices.”

·         Upping ante, Trump threatens new tariffs on Chinese imports

“China’s Commerce Ministry on Tuesday criticized the latest threat of tariffs, saying it was an “act of extreme pressure and blackmail that deviates from the consensus reached by both parties after many negotiations, and is a disappointment to the international community.”

“If the U.S. becomes irrational and issues this list, China will have no choice but to adopt strong countermeasures of the same amount and quality,” the ministry statement said”

·         Trump ignites trade war with China, officially announces tariffs on $50 billion worth of Chinese goods

“The first section will be implemented on July 6 and apply to 818 goods with a total value of $34 billion. The second set, which includes 284 goods equal to $16 billion worth of imports, would come later and be subject to additional public comments.”

·         Trump threatens all-out trade war with China, tariffs on $200 billion worth of goods

“…Trump directed the US Trade Representative’s office to draw up a list of $200 billion worth of Chinese goods to subject to an additional 10% tariff… new tariff would go into effect if the Chinese government did not lower recently announced tariffs on US goods and failed to address the theft of US intellectual property by Chinese companies.”

  • Auto stocks slide as Trump threatens even more taxes on Chinese imports (F, GM, FCAU, TSLA)“depend heavily on imported raw materials including some that, after an announcement last week, are set to be taxed at a rate of 25% beginning July 6. Automobiles and industrial machinery are also in line for that tax.”

China remains the largest vehicle market in the world, with US companies exporting $10.2 billion worth of passenger cars to the country in 2017…”

·         Elon Musk sides with Trump on trade with China, citing 25% import duty on American cars

“The auto executive (Musk) said China puts a 25 percent import duty on American cars, while the U.S. only does 2.5 percent for Chinese cars. He added that no American car company is “allowed to own even 50% of their own factory” in the Asian country, but China’s auto firms can own their companies in the U.S.”

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