…When you plant your trees in another man’s orchard, don’t be surprised when you pay for your own apples…
President Trump has instructed U.S. Trade Representative Robert Lighthizer to execute Round Two of tariffs on Chinese imports. The first round applied to $50 billion in products. The current round applies a 10% tariff to $200 billion (effective Sept. 24, 2018), until January 1st, 2019, when the tariff increases to 25%.
The list of products is particularly focused, and happily we note it includes almost all Chinese processed food imports.
Chinese food processing is sketchy, and China has refused to comply with most international food safety programs. However, President Trump spared smart watches from Apple and Fitbit and other consumer products such as bicycle helmets and baby car seats.
In a statement announcing the Round-Two tariffs, President Trump warned China if they take retaliatory action against U.S. farmers or industries, “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.” That would hit Apple and all consumer good imports. Here’s the announcement and the list of products:
Washington, DC – As part of the United States’ continuing response to China’s theft of American intellectual property and forced transfer of American technology, the Office of the United States Trade Representative (USTR) today released a list of approximately $200 billion worth of Chinese imports that will be subject to additional tariffs.
In accordance with the direction of President Trump, the additional tariffs will be effective starting September 24, 2018, and initially will be in the amount of 10 percent. Starting January 1, 2019, the level of the additional tariffs will increase to 25 percent.
(more…)
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