by Levi Schelhaasfirstname.lastname@example.org
Chinese President Xi Jingping raised new tariffs on American products on May 20 of this year to 25% during the U.S./China trade war, increasing the trade deficit between the two countries. According to the Council Of Foreign Relations, “In 2018 the United States exported $2.500 trillion in goods and services while it imported $3.121 trillion, leaving a trade deficit of $621 billion.” For this reason President Trump is now on the verge of raising tariffs on Chinese products to 30% from the origianl 25% that was issued on May 10.
President Trump is doing this on his belief that Americans will now spend more money on local products, not on imported goods. “…trade wars are good, and easy to win,” tweeted Trump on May 2, 2018 “Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!”
A report from Tariffs Hurt the Heartland found that an increase in duties on Chinese goods would cost a U.S. family $767 annually. In addition, citizens of the U.S. would pay extra taxes for the American farmers because of lost markets to China.
Tariffs don’t just affect soybeans, but also motor vehicles and electronics from the States. “If China retaliates by imposing new tariffs on American goods,” PCHS Business teacher Keith Anderson states “U.S. companies could be forced to reduce domestic production or move it outside of the U.S. to avoid the tariffs.¨ Our president has a tough decision to make because when we increase these tariffs it hurts the U.S. citizens as a whole.