The new tariffs come after a previous wave of tariffs totaling to $50bn worth of Chinese goods. At the time the soy bean industry was the one to take the brunt of the tariffs.
The new tariffs that were part of a wider plan by President Donald Trump to curve China as to what he called was a long-tine exploitation of the former weak American political system.
This time around the tariffs will affect a wide arrange of products-tires, windshields, wipers, baseball gloves, bicycles, snakeskin pants, backpacks, trombone cases, refrigerators, wooden furniture and many other types of products. The list is 194 pages.
The tax is 10 percent on the above mentioned goods and the rest on the list. Apart from these products Trump says that he is ready to impose another $267 billion of tariffs on top of these ones.
The American economy is definitely in a good position and the markets have taken the pending trade war with a grain of salt. China’s yuan has dropped in value relatively to the dollar and that shows that China is in a better position to take on the potential dangers of the tariffs than the US.
Also we must not forget American politics. The Republicans control both the House and the Senate and Trump needs to show victories of his aggressive policy. Otherwise any win by the Democrats could spell disaster for the balance of the American system, which inside a very poisonous atmosphere, at the moment.