Trump tells the Chinese commercial deal: the customs tariff to the first box, is still historically high

President Donald Trump Last week It took the social truth to promote a new initial commercial agreement with China, although this only restores matters to the first box and leaves the tariff rate against Beijing at high levels historically.

“We get a total of 55 % of the customs tariff, China gets 10 %,” Trump Spread the social truth of social readingWith the addition of a later post, “President Xi (Jinping) and I will work closely together to open China to American trade. This will be a great victory for both countries !!!”

Under this new arrangement, if it is, American tariff rate against China It will be determined by 55 %, which is actually an increase of 30 % when the two countries announced that the truce in May is at the beginning of their negotiations. It seems that it appears to be restored with what Trump announced for the first time in April regarding the so -called “liberation day”, which witnessed a rate against China by 54 %.

This initial announcement was followed by multiple rounds of escalation, which witnessed import taxes against China along the road to 145 %. As part of this new arrangement, Trump said that the United States will get access to rare Earth minerals from China – including that vitality to produce technology such as smartphones – while in return, Chinese students will be allowed to attend American colleges and universities.

During his first term, Trump’s trade war with China witnessed an increase in the rate of tariffs against China to about 20 %, which remained largely unchanged during Joe Biden. Looking at the traditional import of China, the increase in customs tariffs on the goods from there will be much larger Impact on the cost of goods From definitions against other countries.

It is not clear at this stage when this is 55 %. The average of 30 % was supposed to remain valid until August, while negotiations continued. It is also not clear whether this rate will affect all imports from China as it is, or if some will be avoided.

What do these definitions do for prices?

He also touched widely Elsewhere here on CNETThe tariff is basically a tax on imports from a specific country. Consequently, the 55 % customs tariff rate on China means that any company or entity is looking to import goods from there will be imposed 55 % of the cost of the request in order to do this – consider a shipment of $ 100,000 now speaks 155,000 dollars.

Now, you, an average consumer, may not do much to import building materials or cheap shirts from China, but this additional cost of importers will reach you anyway. To compensate for definitions, companies always transfer the increasing import costs to the final consumer-which makes homes made with building materials or those shirts that are now sold in a large store in a more expensive series. This type of phenomenon is the reason that many economists and financial experts have described Trump’s tariff as A major new tax on the working class.