IM­PACT of trade war on the US

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Trump has threat­ened ad­di­tional 10% tar­iffs on an­other $200 bil­lion in Chi­nese goods if Bei­jing pro­ceeds with its own re­tal­ia­tory tar­iffs.

Econ­o­mists have warned that a full-blown trade war, es­pe­cially if it drags on for more than a year, could slow the U.S. econ­omy.

But the in­dus­try wants more. Tex­tiles -- like fab­rics and yarns -- are the ma­te­ri­als used to make ev­ery­thing from cloth­ing to seat belts. And du­ties on end, or fin­ished, ap­parel and other goods from China would help do­mes­tic man­u­fac­tur­ers com­pete bet­ter on price with Chi­nese com­pa­nies and gen­er­ate more or­ders for U.s.-made tex­tiles, in­dus­try lead­ers say. Trump, how­ever, largely avoided tar­get­ing con­sumer prod­ucts for fear of up­set­ting vot­ers who could face higher prices at the mall.

Due to the im­pos­ing of new tar­iff lines on Chi­nese goods by the US, the re­sult will be sig­nif­i­cant for the ap­parel and footwear in­dus­tries. There will be a gen­eral in­crease in price all through the sup­ply chain. There is ex­pected to be in­fla­tion on con­sumer prod­ucts in the US Un­for­tu­nately, this has to be paid only by the Amer­i­can con­sumers. It is es­ti­mated that more than 84% of the US travel goods are im­ported from China. This will po­ten­tially af­fect the ap­parel, footwear, and ac­ces­sories brands for be­ing ex­pen­sive and strug­gle in the US mar­ket for be­ing ex­pen­sive. The items un­der the ap­parel sec­tion were added in the lat­est round of tar­iffs.

On the other hand, re­tail­ers are not happy with Trump’s lat­est tar­iff move. They think that this crazy strat­egy would ac­count for $200 bil­lion worth of China prod­ucts sub­jected to a tar­iff that could po­ten­tially hit back to harm US fam­i­lies and work­ers. Again, the Chi­nese re­tal­i­a­tion could de­stroy ‘mil­lions of US jobs, hurt farm­ers, a lo­cal busi­ness­man, and en­tire com­mu­nity’.

A study from the Na­tional Re­tail Fed­er­a­tion (NRF) and the Con­sumer Tech­nol­ogy As­so­ci­a­tion con­cluded that im­pos­ing tar­iffs of $50 bil­lion on Chi­nese im­ports could re­duce U.S. GDP by nearly $3 bil­lion and elim­i­nate 134,000 U.S. jobs an­nu­ally.

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