American Retail Industry Fearful As Trade War Escalates

The trade war initiated by the Trump Administration escalated Wednesday April 4 with China adding tariffs on an additional 106 products worth up to $50 billion annually.

The new tariffs mostly target basic agricultural products, including pork, soybeans, cotton, and wheat, but also include plastics, whiskey, tobacco, and vehicles.
These new tariffs build on an initial list of 128 products announced onApril 2 that targets nuts, pork, steel pipes, and sparkling wine.

The tariffs may make it difficult for Republicans to remain in control of Congress after midterm elections this fall, as many of the products are primarily produced in states where Republicans hold House seats.

The retaliatory moves came after the Trump administration imposed a 25 percent tariff on about 1,300 products from China, including flat-screen televisions, medical devices, aircraft parts, and batteries, on Tuesday.

The American wine industry was hit directly by China’s retaliation, which faces a 15 percent tariff on top of the existing tariffs and taxes going forward. The news was devastating to American winemakers, who have tried hard to market themselves to wealthy Chinese consumers as the country’s appetite for high-end wine has boomed in recent years.

According to a report by the New York Times, Chinese imports of American wine have increased dramatically over the past ten years, with the market reaching $82 million in 2017.

Read More – Jing Daily

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