US consumers looking to buy a new drone, TV or anything with an electronic heart produced in China are urged to do so sooner rather than later.
The reason for this is the introduction of a new import tax that went into effect on 1st September. This tax will see electronics companies which import goods from China having to pay an additional 15 percent tax to the US government.
This is the latest in a slew of tariffs that have been implemented to discourage US firms from making use of Chinese products. The logic appears to be that these companies should use American made products instead of Chinese alternatives which can be more affordable.
The latest round of tariffs called “List 4a” according to CNBC smartwatches, fitness trackers, desktop computers, cameras and even lithium ion batteries are contained within the list.
While the tariffs are now in effect but its said that consumers won’t see their effect on the price until Black Friday.
This should come as a shock to US consumers who may not have felt the effects of the trade war until now. The reason for this gap in their knowledge is due to the fact that up until now only parts and components have been affected. That having been said, tariffs have cost the industry $10 billion since July 2018.
CNBC goes on to report that come December, US consumers will see more tariffs added to smartphones, laptops and video game consoles among other things.
Companies can apply to be excluded from these tariffs but this process and when it will be made available are unclear as of right now.
While we have been focused on the effect the US China trade-war has on firms like Huawei and Apple, the fact of the matter is that US consumers are the ones coming off worse in this war. Will Trump and his administration ease these tariffs and restrictions? We highly doubt it.[Image – CC 0 Pixabay]