Tariffs increase on both sides of Pacific

Sep 6, 2019  | 2 min  | Ep4503

This week, American consumers began paying a 15 percent tariff on $113 billion worth of consumer goods that are manufactured in China. Even as the trade war ratcheted up both sides agreed to another round of talks.

The new American tariffs cover 3,200 product categories manufactured in China, and affect items ranging from smart-watches and flat-panel televisions to virtually all clothing and footwear.

The American consumer has largely escaped paying tariffs on imports from China, but that has now changed. Sixty-nine percent of the consumer goods imported from China are now tariffed. If the additional threatened tariffs take effect in December, $550 billion in Chinese imports will have an additional tax.

China retaliated with $75 billion worth of tariffs on goods originating in the United States. These duties cover agricultural products like fish, nuts, and barley as well as certain metals and chemicals used in manufacturing.

Some analysts believe the now 14-month long trade struggle has pushed both the American and global economy closer to a recession. The two sides have agreed to resume discussions in October. The meeting will be the 13th round of trade talks.

The USDA believes the first round of Market Facilitation Payments are hitting producer’s mailboxes. The payments, intended by the White House to offset the impact of tariffs on American commodities, doled out $12 billion in support in 2018, and may spend as much as $16 billion in 2019.

President Donald Trump: "Last year I gave the farmers 16 billion dollars out of tariffs. The year before that because they were targeted by China, the year before that I gave our farmers 12 billion dollars. And the way we figured that I said how badly have our farmers been hit by targeting from China. And I was told they were hit to the tune of 16 billion dollars. And I made up that 16 dollar for dollar to the farmers. So the farmers are extremely happy and they also know they're warriors. They also know we have to do this with China. We can't let this go on."

For Market to Market, I’m Peter Tubbs

 

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