Contents page 1 — customs policy in the spin cycle page 2 — discussions in the tense atmosphere On a page
Who buys in the USA, a washing machine, is feeling the effects of the trade dispute between the United States and China. About twelve percent more of the cost of new washing machines, since the US President Donald Trump in January 2018, new import tariffs introduced. The calculated researchers at the University of Chicago recently. The higher prices come, because the US government has set an import tariff of 20 percent on imported equipment.
And not only washing machines are more expensive. Since they are sold in the United States, often in cooperation with dryers, have raised the dealer prices for the partner product. The consumers pay the cost of the trade dispute between the United States and China, although Trump promised on Wednesday, in a speech, “they (China) will pay!”
For more than a year, the two largest economies occupy economies in the world and each other with duties. President Trump wants to reduce the high trade deficit with China. This Thursday, the conflict comes in the next round, when in Washington, the meeting of negotiators of both countries to the talks. Before Trump had announced to raise the import duties on products in the amount of 200 billion dollars by now already 10 to 25 percent. Including important Chinese exports such as textiles and electrical appliances. The government in Beijing then threatened with “all necessary counter-measures”.
In the weeks before, the counterparty had reported any progress in the negotiations. However, according to trump’s recent announcements, the signs are again on confrontation. Until the middle of the week, China is expected to have the media under consideration according to reports, even the Meeting to cancel. A day late, the calls start this Thursday. But the mood should be tense. The Skirmishes ahead of the negotiations show that the US government is quite confident in the talks.
Delayed effects
The trade policy of the US government currently has a large backing in Congress. Exceptionally, Trump is not only the support of his Republicans but also the Democrats. Their party leader in the Senate, Chuck Schumer, told Trump to stay with China “hard”. The economic data supports the US President. Many Economists forecast economic collapse due to the protectionist trade policy. In the first quarter of the year, the US economy grew by 3.2 percent, as strong as in the comparable period for the past four years. The unemployment rate is just 3.6 percent, the last time there were lots of 1969, fewer acquisition.
However, the positive overall development could be deceiving. Because in some industries, the negative effects of the mutual duties should occur only after a time delay to the surface.
world trade – Why trade conflicts? The trade dispute between the US and China, the world’s largest economies, has still not been resolved. The Video explains the shutter button and possible consequences. © Photo: Liza workers
especially in the agricultural industry, the consequences of the trade conflict could be felt soon. In 2017, the exported U.S. farmers approximately 60 percent of U.S. soy production to China. In response to Trump’s implemented duties of the Beijing government decided in early July to levy, for their part, customs duties. For soybeans from the USA, a surcharge of 25 percent since then due. Chinese companies accounted for five months all purchases. A disaster for the US farmers have extended cultivation of soya beans because of the lucrative trade with the far East in the last decades.
the losses to mitigate, the Trump government to affected farmers assistance in the amount of twelve billion dollars. Thus, many farmers were able to mitigate their losses in the short term. Nevertheless, the number of insolvent farms rose last year to a ten year. Here, too, the extent of the losses is likely to be more and more visible. Because the support of the U.S. government could end soon. The Ministry of agriculture has expressed in the past few months, contradictory to the question of whether it is ready to support the farmers. Disgruntled farmers can afford the US President. Trump, in turn, is dependent on the support of the American Farmer, in the rural States, an important group of voters.
Also in the spirits industry, the effects of the trade dispute are delayed. Not only China, but also the EU and Canada have introduced in response to the aggressive customs policy of the U.S. government, in turn, import duties, among other things, on Whiskey. Before the entry into force of the tariffs in the middle of 2018, the sales increased, however, because foreign customers spirits to stock bought. So the subsequent losses could be partially offset. In the long-term comparison of the impact of the duties, however. Instead of 16% like in the year 2017, the whiskey exports in 2018 grew by only five percent.
