Additional 10% Tariffs

President Trump has announced that the US is slapping additional 10% tariffs on another $300 billion dollars of Chinese goods.

Trump says US will impose 10% tariffs on another $300 billion of Chinese goods starting Sept. 1

How it affects US market?

Heavy industrial equipment company Caterpillar (CAT) product costs increased by $70 million last quarter and are expected to pay $25 million to $35 million in tariffs this year. The company has raised prices for this purpose.
Wal-Mart, the world’s largest retailer, and Macy’s, a department store chain, have also warned of price increases because goods imported from China are subject to tariffs.

A February report by the US Congressional Research Service showed that raising tariffs led to a 12% increase in washing machine prices compared to before the January 2018 tariffs came into effect.
According to a study by the Peterson Institute for International Economics, steel-aluminum tariffs have caused steel products prices to rise by nearly 9% last year, increasing the cost of steel users by $5.6 billion.
Research by the Federal Reserve Bank of New York, Princeton University, and Columbia University, US companies and consumers pay an additional $3 billion in monthly taxes on taxes on goods imported from China and steel imports from the world. In 2018, the company also suffered an additional cost of $1.4 billion due to reduced efficiency.

According to US Treasury data, in the first half of 2019, tariff revenues soared 73% year-on-year to $33.9 billion. The analysis believes that this part of the tariff is partly borne by US companies.

Under the chain reaction, US companies not only pass on tariff costs by increasing the price of local consumers, but other strategies include accepting lower profit margins and cutting costs – including US employees’ salaries and jobs, and postponing potential salary increases. The whole country is affected.