U.S. Will Impose 25% Tariffs on $50B of Chinese Goods After All
With respect to economic considerations, China and the United States of America, as the world’s most and third-most populated countries, always figure to merit distinction as “frenemies.” The tumultuous relationship between the superpowers has compelled many observers to declare that they are headed for an unbridled trade war, and those worried watchers of global affairs are concerned that such a conflict could occur in earnest beginning June 15. On that day, the U.S. appears poised to announce the list of imports subject to 25 percent tariffs on $50 billion worth of Chinese goods, with that looming date’s likely repercussions leading to immense backlash from China over the weekend.
That move follows and cancels out a May 21 announcement that the tariffs would be put on hold, which itself followed months of speculation as the White House played a game of high-stakes economic chicken with China.
This past weekend, Beijing served as the setting for discussions between an American delegation and Chinese negotiators, with the latter releasing a statement that promises “all the economic and trade benefits negotiated by both sides are not going to take effect” should our federal government craft any trade sanction measures, “including the imposition of tariffs.” The weekend gathering builds on last month’s White House vow to President Donald Trump that Chinese officials would look to reduce the trade gap between the lands by importing more American goods.
President Donald J. Trump is Confronting China’s Unfair Trade Policies ⬇️ https://t.co/E5adtSt5Zx
— The White House (@WhiteHouse) May 29, 2018
A CNN piece on the uneasiness could one moment make a reader feel optimistic about the exchanges between the nations and then send that individual into a panic over the possible outcomes of their talks, owing to the circumstances surrounding a deal. With Commerce Secretary Wilbur Ross leading the American contingent and Vice Premier Liu He taking up the reins for the Chinese government, one could expect for the next 11 days to be quite an interesting time.
As the U.S. imports a vast variety of goods from China, it will be interesting to see which will incur tariffs, as no matter the amount of negotiating that American and Chinese brain-trusts do, it seems highly likely that some sort of tax will soon apply to the imports, as there is no way Ross would describe meeting with He and his contemporaries as “friendly and frank” if the latter were not at least somewhat cognizant of their need to bridge the gap that Trump is adamant about addressing.
While PPAI has pushed back against the tariffs, calling them "harmful" legislation, other industry sources aren't so sure how much they'll ultimately affect promotional products companies. For now, as has been the case for most of this process, there's not much the promo industry can do but wait and see.