China Trade

Question 1

What are tarriffs?

Answer 1

Tax on imports

Question 2

1. Why are some US businesses hurting as a result?
2. Which companies in particular are hurting?

Answer 2

1. They rely on materials from China, and those materials are becoming more expensive.

Other countries, China/EU, are enacting tariffs on American products, thus hurting sales of American products exported

2. Companies that rely on steel/aluminum to manufacture products
   - United Technologies
   - Whirpool
   - Caterpillar
   - Car manufacturers
   - Coors (aluminum)

Question 3

What do tariffs accomplish?

Answer 3

1. Raise government revenue
2. Prevent domestic industries from foreign competition
   a) increases prices of foreign products
   b) punish foreign countires for participating in unfair trade practices
   - subsidizing exporters
   - dumping to gain market share

Question 4

1. At present, what is the total expected future amount of goods from China that will have tariffs enacted?

2, What value of goods does China import from the US?

3. What value of goods does US import from China?
4. What is the range of proposed tariffs?

Answer 4

1. $517b
2. $130b
3. $500b
4. 10% to 25%