The latest round of tariffs on imported goods are taking effect. This round is the largest yet, impacting $200 billion worth of goods from China. The tariffs will likely lead to price increases on products ranging from pork to plastic fences.
This is the third round of tariffs in what has become a cycle. Each time the U.S. announces taxes on Chinese imports, China does the same to American products. The latest round is a 10 percent tax to be applied to some 200 pages of imports. The Trump administration says the tariff will increase to 25 percent by the end of the year if China does not change its trade policies.
American companies are lobbying to get exemptions. PK Chudgar, president of New York-based LMK International, won an exemption to important ibuprofen from China without the tariff.
“China is not going to get affected. What comes in here now is going to be more expensive because government is putting a tariff on it. Long-term this is not going to help us.”
About 300 companies won similar exemptions which belies a dependence on Chinese goods. President Trump says the trade imbalance means the U.S. has the upper hand. But some analysts worry that China could choke the supplies that American companies depend on.