As the United States continues to stand by a 10 percent tariff on imports from China, some industries are beginning to feel the effects.
Businesses have not been able to ignore the increase in cost, and some have had to adjust how they operate. Here are some of the industries most affected by the U.S.’s trade war:
Automotive
Not only are raw materials like steel and aluminum becoming more expensive, but auxiliary items such as tires have also begun to climb in cost as well. Ford estimates that the tariffs on Chinese steel will cost the company $1 billion in total. The company has ditched manufacturing some smaller-sized cars in the United States. It has shifted focus, choosing instead to create trucks and SUVs.
Agriculture
Crops like soybeans have already risen in price, creating unease in farmers. The cost of crops means less room for error, as well as creating more expensive feed for cows, pigs and chickens. Farmers may have to pass these added expenses on to customers. This could slow down sales of not only soybeans but meat and poultry.
Retail
Stores like Amazon and Walmart rely on inexpensive products from China. Tariffs affect everything from barbecue grills to HDMI cables. As the retailers begin seeing higher costs for basic goods, they will have to increase prices. Walmart and other companies have warned that raising prices will slow customer spending. This will have a ripple effect on the entire economy.
The United States shows no sign of letting up on these trade tariffs and companies are getting nervous. The 10 percent tariff is set to increase to 25 percent by the beginning of 2019. It remains to be seen how such a massive increase will impact not only different industries but individuals as well.
If you have questions around handling business in both China and the United States, an attorney skilled in international business law can help.