U.S. TRADE

 The 10% tariff on all Chinese imports into the U.S. took effect on February 4, covering broad categories of goods including consumer items like electronics, clothing, and shoes. Trade groups like the American Association of Port Authorities (AAPA), have warned that the tariffs will slow supply chains and raise costs for U.S. consumers.

China responded with a 15% tariff on imports of U.S. coal and liquefied natural gas. It also imposed a 10% tariff on imports of crude oil, agricultural machinery, large cars, and pickup trucks. The measures will be implemented starting February 10.

Approximately $20 billion in U.S. exports are affected by China’s tariff and around $450 billion in Chinese exports are impacted by the U.S. tariffs. China has also launched an antitrust investigation into Google and has restricted the exports of five key minerals used in defense and tech manufacturing.

U.S. steel prices are already rising, with estimates of a 10-15% increase if more tariffs take effect in March. This could raise the costs of newbuilds and ship repair projects within the U.S. Meanwhile, imported packages from China valued under $800 are no longer exempt from U.S. customs duties. Further, the small retail imports shipments from China – up to three million parcels daily – now require full customs paperwork.

The tariffs on Canada and Mexico which were scheduled to go into effect on February 4 have been paused for 30 days following talks between the nations.