In a halt to what seemed like months of trade war progress, a 10 percent tariff on $200 billion worth of Chinese goods imported to the United States is expected to jump to 25 percent on Friday.
U.S. Trade Representative Robert Lighthizer confirmed the tariff would rise at 12:01 a.m. Friday, according to several media reports. President Donald Trump issued a threat to jump to 25 percent over the weekend, halting months of trade negotiations.
The tax hike could further impact local businesses who have been working to adjust to the 10 percent tariff, with many having to raise prices to cover some of the costs. Bikes at the Kettering Bike shop increased 5 to 8 percent.
Other companies have also had to adjust their pricing, including Morris Furniture. CEO Larry Klaben previously told the Dayton Daily News that at the end of last year he was going to have to raise prices to make up for the increase suppliers are charging him for the mechanical parts in recliners and steel materials.
Other stores like Dollar Tree that can’t pass on the costs to consumers because of its promise to stay under $1 have had to limit their assortment of products.
“Tariffs are taxes paid by American businesses and consumers, not by China. A sudden tariff increase with less than a week’s notice would severely disrupt U.S. businesses, especially small companies that have limited resources to mitigate the impact. If the administration follows through on this threat, American consumers will face higher prices and U.S. jobs will be lost,” said David French, senior vice president for government relations at the National Retail Federation.
Trump said the duties are meant the halt China’s theft of U.S. technology and coercion of American companies to surrender their trade secrets in return for access to the Chinese market.
China’s retaliatory tariffs on the United State have caused already low soybean prices to sink for area farmers. Now farmers are struggling with a wet spring that could reduce harvest along with the threat of tension building in the trade war in a yearslong price slump.
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