Extra Tariffs on China Is Not Going To Cover the Cost Of Trade War

Extra Tariffs on China Is Not Going To Cover the Cost Of Trade War

BUSINESS

The trade war has taken the country’s economy down. Now experts are saying that tariffs on China are not going to make trade war more profitable. President Trump, who started this trade war with China so far, did take lots of bold decisions. One of them is putting a considerable amount of taxes on Chinse goods. Still, the cost of a trade war which the US is suffering from is far higher than these taxes, and it’s not going to make America great again. China is famous for being one of the largest buyer and supplier to the USA. However, since trade war is becoming more political, it’s affecting both countries businesses.

Recently Trump decided to collect a higher amount of taxes on Chinese goods worth $250 billion. Experts think it’s still not going to solve the problems of local farmers, manufacturing retailing companies which are more dependent upon China. According to the latest report from US officials, the government managed to collect $20.8 billion of taxes on Chinese imported goods. Trump has already committed to paying the farmers a sum of $28 billion who have suffered losses because of a trade war. Trump already announced a helping package to farmers in last month under which all farmers are going to receive the compensatory money from the government.

However, now a more significant question arises how trump is going to collect this money to pay to the farmers. The answer is not by putting more tariffs on Chinese goods. China has already started to do the same on US companies, big tech giants. Now Apple, Google, Tesla is trying to shift their production house form there. Even though Trump and Xi Jinping met together at the G-20 Summit, nothing positive has so far come out of it. Still, Analysts think trump administration is now in the mood of ending trade war because of the upcoming elections.