The temporary lowering of tariffs may compel some U.S. businesses to order goods that they had held off buying after President Trump raised them to 145 percent.According to The New York Times, the recent temporary reduction of tariffs may prompt some American businesses to finally purchase goods that they had previously held off on buying due to President Trump’s steep 145 percent tariff. For weeks, Jay Foreman, a toy company executive, had halted all shipments from China in order to avoid paying the high tariff, resulting in a buildup of Care Bears and Tonka trucks at Chinese factories. However, as soon as Mr. Trump announced the 90-day tariff reduction, Mr. Foreman immediately contacted his suppliers and instructed them to start shipping merchandise. This could potentially lead to a surge of goods entering the United States. While experts believe that the shipping industry and ports can handle the increased volume, they also warn that the constant changes in tariff policies are causing stress and disruption for companies involved in global trade. The Trump administration lowered tariffs on many Chinese imports to 30 percent, while China reduced its tariffs on American goods to 10 percent. However, if a deal is not reached within 90 days, the tariffs could go back up, although Mr. Trump has stated that they will not return to 145 percent. Some importers may choose to wait and see if tariffs will be lowered even further before placing orders from China.
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