U.S. President Donald Trump’s China tariffs took effect on September 1, and its impact is being felt by different industries.
Reports show that more than $100 billion of about $300 billion in new U.S. tariffs on Chinese imports are already in place. The rest will gradually come by December.
About $550 billion worth of total goods imported from China will be taxed by the Trump’s administration. This will be paid for by American companies that import them.
Trump increased the tariffs despite the letter sent by the Americans for Free Trade Coalition, a gathering of the country's biggest trade associations, asking him to postpone U.S. tariffs on Chinese imports.
U.S. companies have began cutting costs, shelving investments, and spending more to secure their inventory which will be affected by Trump's China tariffs. Deutsche Bank analysts reveal that companies are holding off their plans to build factories. Some companies are, according to a Goldman Sachs survey, "rerouting supply chains and relocating production to mitigate exposure to the trade war.”
The five major industries that will absorb the impact of the China tariffs are retailers, food and agribusiness, manufacturers and suppliers, technology and telecommunications, and clothing and footwear.
Trump's China tariffs that took effect on September 1 will hit televisions, smart watches and headphones, Best Buy CEO Corie Barry told Wall Street analysts. Around 60% of Best Buy’s total cost of goods sold comes from China, according to Barry. She revealed that many of their vendors are moving manufacturing out.
Meanwhile, China has cut off imports of U.S. agricultural products like soybeans and corn. The trade war has already reached agricultural items like lobsters, nuts, and wine.
The American Apparel and Footwear Association reported that some 92% of apparel in the U.S., including 68% of textiles and 53% of footwear, were subject to the September 1 tariffs.
