The United States and China are playing trade games as the world watches.
The United States has a trade deficiency of over US$275 billion dollars with China. This instigated the Trump administration to impose fresh tariffs on its imports from China.
Till March this year tariffs stood at 4.1% of the total goods against China. However the Chinese retaliated and imposed counter tariffs on US products.
This year in June President Trump extended tariffs on goods from European Union, Mexico and Canada. This created a silent trade war between nations trading with the United States.
In total up to today, US slapped tariffs on US$250 billion worth of Chinese products, and threatened tariffs on US$267 billion more. China set tariffs on US$110 billion worth of US goods, and threatened qualitative measures that would affect US businesses operating in China.
On the brighter side experts believe that this war would encourage local manufacturing and boosts job creation.
Tariffs are taxes on its own people, so that they choose goods made locally. The move aims to reduce imports. Many products are likely to get more expensive after the tax slab would increase to 25% from 1st Jan 2019, currently tax slab imposed is 16%. This trade war will burn US$9000 dollars more for an average American family.
TV’s, Washing machines, Solar panels, Cars, Beer, Cosmetics, Electronics and Clothing sectors would face the brunt. Companies importing steel and aluminum may incur additional expenditure.
Dozens of American companies announced that its consumers might have to see a price rise, among which were apple and harley davidson. The consumers might see the impact of these tariffs immediately.