Useful information
Prime News delivers timely, accurate news and insights on global events, politics, business, and technology
President Donald Trump last week I took social truth to promote a new tentative commercial agreement with China, although it only takes things to the starting point and leaves the rate of rates against Beijing at historically high levels.
“We are obtaining a total of 55% of tariffs, China is obtaining 10%,” Public to the social reading of truthWith a subsequent publication that adds: “President XI (Jinping) and I worked in close collaboration to open China to US trade. It would be a great victory for both countries!”
According to this new agreement, if it is, the United States tariff rate against China will be established in 55%, which is actually an increase in the 30% rate established when the two countries declared a truce in May at the beginning of their negotiations. Apparently, he is putting the rate in line again with what Trump first announced in April in the so -called “day of release”, which saw the rate against China established at 54%.
That initial announcement was followed by multiple rounds of climbing, which saw that import taxes against China rose to a rate of 145%. As part of this new agreement, Trump said that the United States will have access to Rare Minerals of China, including vital ones for the production of technology such as smartphones, while in return, Chinese students will be able to attend American schools and universities.
During his first term, Trump’s commercial war with China saw the average rate rate against China increased to approximately 20%, which remained largely unchanged during the presidency of Joe Biden. Given how much the United States of China has traditionally imported, the increase in tariffs on the goods there will have a much greater impact on the cost of goods than tariffs against other countries.
It is not clear at this point when this 55% rate would enter into force. The previous rate of 30% was supposed to remain in force until August while the negotiations continued. Nor is it clear if this rate will affect all imports from China in the same way, or if some will be saved.
What do these prices tariffs do?
As I have touched widely here in CNET, a tariff is essentially a tax placed in imports from a certain country. Therefore, at a tariff rate of 55% in China, therefore, it means that any company or entity that seeks to import goods there will be charged 55% of the cost of the order to do so, think that a shipment of $ 100,000 now costs $ 155,000.
Now, you, an average consumer, may not make much import in the bulk of construction materials or cheap t -shirts from China, but that additional cost for importers is very likely that it affects it anyway. To compensate for tariffs, companies almost always transmit their highest import costs to the final consumer, which causes houses made with these construction materials or those shirts to now be sold in a more expensive important chain. This type of phenomenon is the reason why many economists and finance experts have characterized Trump’s tariffs as A new important tax in the working class.
