Title: U.S.-CHINA TRADE DISPUTE: Understanding the Conflict - Livingston International
Headings: U.S.-CHINA TRADE DISPUTE
UNDERSTANDING THE CONFLICT

U.S.-CHINA TRADE DISPUTE UNDERSTANDING THE CONFLICT
What are the Most Recent Developments?
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Why is this Happening?
Response to Proposed Tariffs
Economic Impact
Supporting our customers’ needs

Content: Response to Proposed Tariffs
Trade actions against China have been cause for concern among many industry groups – outside of the technology sector – for which China has become a critical manufacturing base and/or integral link in their international supply chains. These include apparel, consumer packaged goods, agriculture and several others. The application of the tariff would force businesses in these industries to dramatically increase the landed costs associated with their import practices, forcing them to raise their prices or become less competitive in the international market. China’s retaliation has been equal cause for concern, particularly in the U.S. transportation and agricultural industries, which rely heavily on exports to China. Economic Impact
While views vary on the degree to which these trade barriers will impact the U.S. economy, many economists argue the imposition of tariffs by the U.S. and/or by China will only serve to destabilize the economy and cause speculation in financial markets. Few believe tariffs will effect change with respect to China’s intellectual property practices and will only serve to drive up costs for businesses on both sides and disrupt the global supply chains on which American multinational businesses rely to remain competitive in international markets. The initial list of $34 billion in tariffs will primarily affect finished metal goods, machinery, electrical equipment and industrial goods. The subsequent list – should it resemble the balance of the initial list of 1,300 products announced by the USTR – will affect medical supplies, pharmaceuticals, agriculture and agricultural machinery and textiles, among others. Supporting our customers’ needs
Livingston will continue to monitor the progress of discussions and will continue to provide updates. If you have any immediate questions, please contact 1-800-837-1063.