China Tariffs on US Goods
The United States trade business with China has always been a little rocky, but tension is growing due to new tariffs being imposed. A tariff is a tax imposed on items being imported or exported from another country. For example, if someone goes to the store to buy French cheese, it will be far more expensive than buying American cheese because the US wants to encourage citizens to buy American made products to support our nation’s economy. Global trade is key to a healthy economy so countries don’t want the price of their goods to get too high in other countries otherwise they lose business.
China is one of the United States biggest trade partners. Many US businesses sell their goods to China because China has such a big consumer base. The Trump administration started a burning feud with China saying they were planning on imposing tariffs of 25%. China claimed that if the US did this, they would too. China would specifically target high-value American goods such as airplanes and produce.
Although this might just sound like boring politics happening thousands of miles away, it would actually have a huge effect on the state of Washington. Washington is home toBoeing, the top airplane producer in America. If Boeing’s goods get too expensive for Chinese companies to purchase due to the tariffs, they will switch to another airplane company that is cheaper, such as Airbus, in France. This would have an extremely negative effect on Boeing because China is a big part of their customer base. Boeing is a huge company in Washington that employs a lot of people so having these tariffs would end up having a huge effect on everyday people.
Another huge Washington market that would suffer is apples. Apples are one of the biggest exports in the state of Washington. If Washington farmers lose Chinese business, they would have to find a whole new market to sell to.
The US is so reliant on Chinese business that imposing these steep tariffs will be a big adjustment for the American economy.