A game changer for American consumers kicks in today

September 24, 2018

 

Today, September 24 of 2018 comes into effect the second round of tariffs on $200 billion worth of Chinese goods. The tariffs begin at 10% and will increase to 25% next January. These will hit thousands of consumer products including but not limited to goods like refrigerators to bicycles, telecom companies that provide gear that powers the internet, mobile networks, data storage and other technology, cell tower radios, modems and other products made and assembled in China and exported to America, according to the New York Times. Some companies even lobbied for some products to be removed from the list and the administration seared a total of 300 products thanks to intense lobbying by Apple and Fitbit.

 

As well as the American automakers and manufacturers, the tech companies like Intel, Dell and Apple shifted a great part of manufacturing to China to take advantage of the low labor costs and tax laws, making the products they sell in America and everywhere, cheaper. The option of moving back or relocating elsewhere is “unrealistic” Intel says, the costs of relocation is too high.

 

Google, Dell, IBM and other technology companies estimate prices to increase and that, as a multiplier effect will damage America’s ability to dominate the next generation technology that would power driverless cars, artificial intelligence and others, and will slow business growth. The goal of Trump is to use these tariffs as a weapon to provoke China to change trade practices because he thinks is unfair, for example, he said last week that some policies oblige U.S. technology companies to transfer technology to Chinese counterparts and China has involved in outright theft of intellectual property.

 

In 2014, electronic imports accounted for 40% of Chinese imports according to the United States International Trade Commission. The telecommunications Industry Association estimates millions of dollars increased costs for companies. Tim Cook, Apple Chief Executive said that the iPhone is assembled in China although a great part is made in the U.S., these tariffs could increase the cost of that product.

 

 

 

 

Share on Facebook
Share on Twitter
Please reload

Featured Posts

Hagamos del 2019 el año de Puerto Rico

January 1, 2019

1/5
Please reload

Recent Posts
Please reload

Archive