President Donald Trump thinks that his trade war against the European Union, Canada, Mexico and China. However, statistics just does not square with the presidents dislike of global trade is going to cost consumers more money when they go to the store and it will cost many people their jobs.
According to a report by the Associated Press China will fight back against the latest wave of tariffs put forth this week by the Trump Administration. The tech industry will be hard hit by the China backlash and the smart phone industry will be the hardest hit area along with those who build all types of electronics from earphones to HDTV’s.
“Just about any wireless accessory made for a phone is going to be affected,” JLab CEO Win Cramer said. “We are going to have to start charging retailers more, and my guess is they can’t afford the haircut either. So at the end of the day the consumer is going to pick up the tab.”
If JLab passes along the entire cost of the tariffs, a pair of sports earbuds listed on its site at $149 could end up costing $163.90.
That might not sound like much, but Cramer says every dollar counts in a fiercely competitive audio market. JLab could suffer if one of its main rivals, Beats, doesn’t also raise prices. Beats is owned by Apple, whose enormous iPhone profits could easily cover the cost of tariffs on Beats headphones. “I don’t have anything else to lean on,” Cramer said.
Meanwhile, according to a New Republic report this week South Carolina is just one state the will take a double hit, one from China and the other from the EU.
Elements Electronics, a TV-maker, is letting go of the employees. In a letter to the South Carolina Department of Employment and Workforce, Element wrote “the layoff and closure is a result of the new tariffs that were recently and unexpectedly imposed on many goods imported from China, including the key television components used in our assembly operations in Winnsboro.”
Volvo wanted to hire 4,000 employees for a new plant in South Carolina but the tariffs is likely put that promise made by the Swedish on hold for at least a year if not longer.
Both BMW and Mercedes do business in South Carolina and even Trump Administration U.S. Commerce Secretary Wilbur Ross conceded that there is a problem. He said the tariffs could jeopardize 45,000 S.C. jobs, including 10,000 at its Spartanburg plant and 35,000 at BMW suppliers.”
A little further south in Alabama their freshman Democratic Sen. Doug Jones was quick to point out that his states booming auto industry would take a big hit.
“I can’t just sit by while the president’s, I believe, shortsighted proposals threaten (jobs) in Alabama,” Jones said. “The proposal is going to hurt Alabama, plain and simple.”
U.S. car makers will also be forced to lay people off as soon as this fall. The U.S. auto industry relies a great deal on parts made in Canada and Mexico.
Industry giants like G.M. Ford and other industry leaders are caught in the middle of an escalating trade war that has prompted retaliation from the European Union, Mexico, Canada and China.
Yes, you can buy Ford’s and Chevy’s in Canada, Europe, Mexico, and tariffs will drive their prices up outside our boarders.
So, fighting a trade war that was created by the Trump Administration is a losing hand. Things just might start to sink in just about November when the 2018 midterms are slated to take place.