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How New Tariffs Are Impacting US Businesses

Farmer Terry Davidson walks through his soy fields on July 6, 2018, in Harvard, Illinois, the same day China imposed retaliatory tariffs aimed at the US soybean market.
Farmer Terry Davidson walks through his soy fields on July 6, 2018, in Harvard, Illinois, the same day China imposed retaliatory tariffs aimed at the US soybean market.

Rumblings of a trade war between the U.S. and China started in January when President Trump imposed tariffs on solar panels and washing machines.

Since then, things have escalated.

On Friday, President Trump told CNBC that he’s prepared to place tariffs on all $505 billion of Chinese imports. And China, who’s been matching U.S.-imposed tariffs tit-for-tat, might not be able to reciprocate.

How are new tariffs impacting American businesses? According to The Wall Street Journal, it depends on the type of business.

In the auto industry, for example, the idea of tariffs has been met with widespread opposition.

But in states that rely on agricultural exports, public opinion is less unanimous. A Brookings Institution analysis shared by The Washington Post says the 15 states with the highest share of jobs at risk in the trade war are Arkansas, Iowa, Nebraska, Alaska, Idaho, Mississippi, Washington, Kentucky, South Dakota, Alabama, Delaware, Michigan, Indiana, Wisconsin and North Dakota. And according to a Washington Post poll, Trump’s approval rating in those states is 52 percent — up 5 percent since the 2016 election.

— Donald J. Trump (@realDonaldTrump) July 11, 2018

From The Washington Post:

While most economists have urged Trump not to pile on more tariffs because the effects on jobs and the economy could be detrimental, they acknowledge that the impact to date has been modest. The average cost to a family so far is about $80 more a year, according to Mark Zandi, chief economist at Moody’s Analytics. That $80 bump would be hard to distinguish from the normal rise in prices that typically occurs.

The tariffs are thought to likely become more detrimental the longer they’re in place, so how will this economic battle play out for American businesses? And which industries will be impacted most?

Here’s an interactive timeline of the trade war from The New York Times.

*Show produced by Danielle Knight, text by Kathryn Fink*.

GUESTS

Shawn Donnan, World trade editor, covering international economics for Financial Times; @sdonnan

Chad Bown, Senior fellow, Peterson Institute for International Economics; co-host of “Trade Talks” a weekly podcast about the economics of trade policy; @chadbown

Michelle Erickson-Jones, Fourth-generation farmer in Broadview, Montana; president, Montana Grain Growers Association; member, Farmers for Free Trade; @bigskyfarmher

Bryan DeHenau, President, BCD Construction LLC, a licensed building company located in the greater Detroit metropolitan area, Michigan

For more, visit https://the1a.org.

© 2018 WAMU 88.5 – American University Radio.

Copyright 2018 WAMU 88.5

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