After declaring a trade war on China on March 1st, president Trump is moving full steam ahead with his tariffs on consumer electronics' components imported from China. The list of Chinese products that will be taxed includes several essential elements that are found in smartphones and various popular gadgets that are sold in the United States.
According to Timothy Sturgeon, a senior research affiliate at MIT’s industrial performance center, the taxes will eventually make consumers pay more for various products “That’s how companies work” He added. In the first stage, Trump imposed a 25% import tax on goods from China, valued at $34 billion, and will continue with the tariffs.
"This week, the President has directed that I consider increasing the proposed level of the additional duty from 10 percent to 25%. The 25% duty would be applied to the proposed list of products previously announced on July 10," stated US Trade Representative Robert Lighthizer.
In the next stage, Trump will reportedly impose a 25% tax on $200 billion worth of goods from China, that was initially set to be 10%. The taxed components include parts that are used for wireless technologies and consumers are expected to pay for the rise in taxes on imported goods.
It is unclear how long the trade war will continue but in the meantime consumers and businesses are starting to feel its effects with rising prices in various products.