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Administration Promises to control the abusive trade practices

Trump administration promises to control the abusive trade practices which have been made by the Beijing government. The strategy is to impose tariffs on Chinese imports which are worth $34 billion and these impositions have already taken effect. However, this blow that was to impact the Chinese companies have done more harm to non-Chinese companies. There is a New Jersey-based company Snow Joe/Sun Joe which has suffered as a result.

The CEO, Joseph Cohen, claims that the company will face tariffs on the account of tillers along with cultivators which are made in China. This company sells almost 700 home and garden products which are imported from China into U.S. Cohen promises that the company will try to maintain similar costs for the retailers yet the retail price might go up ultimately because 25 percent is a big amount. Consumers will also have to pay more as a result because the amount of tariff is a big blow to older prices.

This goes to show that indirectly, the trade tariffs imposed by United States has already started to impact U.S based companies already. Although, according to an economist professor, Mary Lovely, it is anticipated that Chinese and other foreign companies with manufacturers in China will suffer the most. Lovely, who is also a non-resident senior fellow at the Peterson Institute for the International Economics, claims that interconnected supply chains have become essential to manufacturing. For instance, many tech-parts for manufacturing are brought into the U.S from China which is assembled into the final form before they are sold.

She says that the public has knowledge about consumer goods including clothing, television and other products which are imported from China. Moreover, the multinational supply chain is also dependent on 60 percent of trade that takes place between China and the U.S. At first, consumers might not feel the side effects as only the supply chains might suffer. However, with time, consumers will notice the change in prices as well.

There is another Japanese company called Mabuchi Motor which sells medical and auto products along with some other consumer products as well. It provides low-tech motors that are used for rolling down car windows and other such functions. However, these low-tech motors are manufactured in China and then further sold in U.S to automakers, medical companies etc. The treasured of Mabuchi, Anne Hoef, who belongs to Michigan based distribution arm, says that Mabuchi is undergoing tariff imposition as well.

One of the options to avoid tariff imposition is to relocate the manufacturing facilities outside of China which does not sound practical for the company at the moment. It is left with no choice but to pay the extra cost which will also cause the customers to pay more than before. The automakers and medical-device buyers will have no choice but to pay the extra cost. Ultimately, the U.S consumer will be paying more which will take a plight at U.S economy more than Chinese unlike speculations of Trump administration which imposed the trade tariffs.

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