The tariff scares have continued to boil under the Trump administration. Now, they are threatening a 145% Tariff on all goods from China. This would make it so that essentially no trade can be done with China. Certain companies may find substitutes or ways around it. While he raised the tariffs for China, he decreased them to 10% for most other countries for 90 days. This makes the average tariff rate higher than it has been since the 1940s. Economists believe that it is sending us in a very poor direction as an economy. The estimated federal tax this year would be $171.6 billion, which is higher than it has been since 1993. On Thursday, China put a retaliatory tariff on our goods to 84% from 34%.
https://www.cnbc.com/2025/04/10/trumps-triple-digit-tariff-essentially-cuts-off-most-trade-with-china-says-economist.html
3 comments:
I'm intrigued to see if this is just a game of chicken. The Trump administration doesn't want to back down, and neither will China. I think Both countries probably know what will happen to the international economy if they don't trade, but I wonder if this will just be a way of trying to assert their power on the other.
It is important to note that the administration announced that items such as smartphones, computers, and semiconductors are exempt from the new reciprocal tariffs, so trade between the US and China is not completely cut off, but the impact of the reduced trade levels that result from the tariffs should have a significant impact on the global economy.
At some point China and the Trump administration will have to figure something out having that they are the two biggest economies in international trade. Either that or countries may seek to establish new trade partnerships or strengthen existing ones to mitigate the effects of U.S.-China tariffs.
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