Taipei, Taiwan, May 17, 2019 --(PR.com
)-- Yesterday, Chinese exporters awoke to the unexpected news that US President Donald Trump and his administration had pulled the trigger on escalating tariffs on Chinese goods to the value of $300 billion after China allegedly reneged on several promises it had made during trade talks.
China, in turn, hit back with retaliatory tariffs on US goods valued at around $60 billion dollars targeting a wide range of agricultural products that will have a devastating impact on the earnings of US farmers.
China’s exporters are up in arms about the harsh tariffs imposed by Trump who has escalated the trade war far beyond what anyone initially thought was possible. Analysts at Taipei, Taiwan based Everitt Lawson Group say many Chinese exporters will stand to lose all of their US based business.
When certain products are sold with only a 15 percent profit margin, a 25 percent import tariff will wipe out any profit to be made.
In March, after weeks of optimistic statements from Trump and his administration stating that negotiations with China were progressing well, China’s exports showed signs of recovery with a 14.2 percent rise. This rise was shaken by a 2.7 drop in April and Everitt Lawson Group blame the prolonged trade tensions.
And while Chinese exporters fear that the latest round of tariffs could wipe out their US business, Everitt Lawson Group analysts say China’s retaliatory tariffs could be the difference between life and death for many US companies.