Editor’s Note: Can the U.S. Win the Trade War With China — and at What Cost?
Although the Trump administration has argued that newly imposed tariffs on China are necessary to curb its abuse of global competitors, industry leaders are saying the tariffs are disrupting their supply chains and adding costs that they will need to pass on to consumers.
Q2 2019
What does this mean to U.S. businesses and consumers? An analysis from the Tax Foundation finds that the administration’s 25 percent tariff on $200 billion worth of Chinese goods amounts to a $50 billion tax increase and would reduce GDP by 0.21 percent and eliminate more than 161,751 jobs. This is because the cost of new tariffs is being passed on to U.S. companies, affecting their decisions and ability to grow and increase hiring. And many companies say they’ll have to pass on the extra costs of tariffs to consumers of their products.
Columbia Sportswear CEO Tim Boyle calls the tariffs “very disruptive” to his company’s supply chain and said in a Bloomberg TV interview Columbia will pass on the costs to consumers if it has to. According to Boyle, “The big issue is really the uncertainty we face in trying to grow our business; we’re spending way too much time worrying about Mr. Trump’s trade war as opposed to selling our products.”
Yet, there are those who would say these tariffs are necessary because China has taken advantage of its global competitors by ignoring trade agreements and illegally appropriating foreign technology. Getting China to change will require severe financial penalties, according to Michael Collins, president of MPC Consulting, which focuses on the challenges faced by small and mid-size manufacturers. He believes we need a “short-term sacrifice to avoid long-term collapse” of our economy.
The question remains — can we win this trade war and at what cost?
Project Announcements
Western Smokehouse Partners Plans Mexico, Missouri, Manufacturing Operations
11/02/2024
Ridgenet Network Group Expands Pulaski County, Kentucky, Manufacturing Operations
11/02/2024
BENTELER Automotive Corporation Expands Duncan. South Carolina, Operations
11/02/2024
Graham Packaging Expands Tangipahoa Parish, Louisiana, Production Operations
10/30/2024
OmniaBio Plans Hamilton, Ontario, Manufacturing Operations
10/30/2024
Northern Hardwoods Lumber Upgrades Houghton County, Michigan, Operations
10/30/2024
Most Read
-
Top States for Doing Business in 2024: A Continued Legacy of Excellence
Q3 2024
-
The Role of Rail in Industrial Development
Q4 2024
-
Cold Storage: The Next Big Thing in Industrial Real Estate
Q3 2024
-
Which AI Tools Work for Job Recruiters?
Q3 2024
-
Exploring the Dynamic Landscape of Industrial Packaging Solutions
Q3 2024
-
Permitted Power Capacity Foreshadows Health of Regional Economies
Q3 2024
-
What If the Longshoremen's Strike Had Persisted? Examining the Potential Economic Fallout
Q4 2024