The tariffs President Donald Trump is expected to set will be around 10% and they intend to provide leverage for the U.S during the high-level discussions that will take place in Beijing.
China allegedly demands that American companies turn over technology if they plan to do any business within the country and The White House is picking up the pace at counteracting that the only way it knows how. At a time when China’s economy seems to be slowing down, the tariffs will definitely hurt its export industry.
To say that this will do no good to the already existing trade tensions between the two countries would be an understatement, and China is not expected to give in to Trump’s attempts to pressure it.
Trump’s solution was to tell companies within the U.S to start producing more of their goods within the country, blissfully unaware of how difficult that is and the many things it involves – more often than not, the companies source China in order to take advantage of the country’s natural resources and skilled component makers.
There have already been 25% tariffs imposed on Chinese goods and China has, so far, matched them to the cent, promising to return the favor with another $60 billion of U.S exports that include meat, furniture and auto parts. Prices for Fitbit trackers and circuit boards are also expected to increase, along with other Chinese tech.
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