Trade war’s wounded: Com­pa­nies im­pro­vise

The News Herald (Willoughby, OH) - - Nation + World -

WASH­ING­TON » In New York, a maker of fur­naces for semi­con­duc­tor and so­lar com­pa­nies is mov­ing its re­search and de­vel­op­ment to China to dodge Pres­i­dent Trump’s im­port taxes — a move that threat­ens a hand­ful of its 26 U.S. jobs.

In Cal­i­for­nia’s San Joaquin Val­ley, the CEO of a com­pany that makes pre­ci­sion parts for the bio­med­i­cal and chip mak­ing fields jokes bit­terly that he’s run­ning “a non­profit” and might have to cut jobs.

Trump fre­quently boasts that the taxes he’s im­posed on im­ports — steel and alu­minum and nearly half of all goods from China — have show­ered the U.S. Trea­sury with new­found rev­enue.

Yet tar­iffs like Trump’s ac­count for barely 1 per­cent of fed­eral rev­enue. It’s ac­tu­ally com­pa­nies like Lin­ton Crys­tal Tech­nolo­gies in Rochester, Accu-Swiss Inc. in Oak­dale, Cal­i­for­nia, and Clips & Clamps In­dus­tries in Ply­mouth, Michi­gan, that are pay­ing the price for his trade wars.

Tar­iffs tend to swell the cost of these com­pa­nies’ ma­te­ri­als and leave them at a com­pet­i­tive dis­ad­van­tage to for­eign ri­vals un­bur­dened by im­port taxes.

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