President Donald Trump announced via Twitter the plan to impose a ten percent tariff on $300 billion of consumer electronics manufactured in China, in effect on the first of September on August 1st, 2019.
The tweet from President Trump reads as follows; “Trade talks are continuing, and during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country…We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!” Since the initial statement, a small quantity of details involving the tariff have changed.
The date to put the bulk of the tariff in effect has now been pushed back to December 15th, based on a statement from the Office of the United States Trade Representative. Alongside that, some specific goods from China have been removed from the tariff due to concerns for national security, health and safety. Within the statement, a generalization of the taxed goods reads as follows; “Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing”. Arguably the most important detail of the tariff is the group of products that will be under a twenty-five percent tariff, rather than the base ten. It’s unsure what products fall under which category at this time, but more details should be disclosed in the coming weeks/months.
With the establishment of the taxes applied to Chinese imports, consumers and companies who rely on consumers’ funding are concerned for the increase in prices and how they’ll affect sales. One company in particular, Apple, will see further price jumps on their products, despite the already hefty tag on most of their devices. However, US tech companies can relax for the moment and properly prepare for the tariff, given the additional few months before it’s implemented.