A trade war between the U.S. and China officially started last week as the Trump administration has followed through with its threat to impose tariffs on $34 billion worth of Chinese products.
This story originally appeared in Trade Only Today.
Chinese steel (25 percent tariff) and aluminum (10 percent) have already been attracting import duties, but now so are dozens of other products used for building boats and marine engines. The list includes such items as DC and AC generators, propellers and other components. Trade groups such as the NMMA have warned for months that the tariffs will hurt U.S. boat and equipment manufacturers.
After months of talk, the escalation of the trade war into reality is expected to disrupt global supply chains while raising costs for businesses and U.S. consumers. Chinese officials, according to the New York Times, said the country would retaliate by levying $34 billion in tariffs on U.S. exports such as pork, soybeans and automobiles.
The Trump Administration said it plans to place tariffs on another $16 billion worth of Chinese products by August and has warned China it could eventually levy tariffs on as much as $450 billion worth of goods.
The tariffs on imported steel and aluminum have caused prices to rise as much as 30 percent across the board, as domestic producers have raised prices to match the tariff-added imports. Recent cases by the International Trade Commission will place additional duties on Chinese-imported aluminum from some Chinese firms of more than 200 percent.