Other Companies will also be affected by Trump’s Tariffs at Chinese Companies

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The Trump administration said that the U.S administration is hoping to strike a blow against long-standing abusive trade practices by the Beijing government after imposing tariffs on 34 billion U.S dollars worth of Chinese imports that took effect Friday. Now, the blows are threatening to land hardest on non-Chinese companies like New Jersey-based Snow Joe/Sun Joe. The CEO Joseph Cohen said that the company selling some 700 home and garden products is expected to face tariffs on the tillers and cultivators it makes in China and imports into the U.S. The cost to the company is likely to be significant. He added that they are going to do everything in their power to maintain our cost to our retailers, and ultimately the retail price.

But, 25 percent’s a really big number. He referred to the amount of the tariff. The company’s plight illustrates one of the unintended consequences of the tariff war now brewing between the United States and its trading partners. Most of the companies that will feel the tariffs’ impact are not Chinese but foreign firms that do part of their manufacturing in China, says Mary Lovely, an economics professor at Syracuse University and nonresident senior fellow at the Peterson Institute for International Economics. A number of manufacturing these days relies on vast, interconnected supply chains that may cross borders several times. For instance, the United States manufactures elevators using some low-tech parts that are made in China, which are then brought back into the U.S. for final assembly and sold all over the world, she says. Much of the public knows about the vast number of consumer goods now imported from China into the U.S., such as televisions and clothing.