Sep 10, 2018 (China Knowledge) - US President Donald Trump has announced to increase tariffs on Chinese imports from 10% to 25%. The proposed tariffs will take effect next month after the public comment period to weigh the decision on whether the Trump Administration should go ahead with the decision.
Four U.S. tech groups, Cisco, Dell, Hwelett Packard Enterprise and Juniper Networks have issued a joint appeal to the Trump Administration to protect key technological products from being included on the list of USD200 billion tariffs on Chinese imports, just before the end of the comment period.
The joint letter, addressed to U.S. trade representative, Robert Lighthizer, has emphasized the backlash companies will face if the tariffs were to be implemented. The tariffs imposed on technological products such as networking equipment will increase cost of production for the companies, increasing prices for the consumers, and reducing the capabilities of the companies to invest.
The loss in competitive advantage in capturing the market shares due to higher prices, might potentially led to more job losses in the U.S. Furthermore, the tariffs imposed on multiples components and finished products key to the development of a strong digital infrastructure, will impede the progress the U.S. in its cloud computing, data or even the development of 5G development.
Besides these four tech companies, many business owners have also voiced their concern over the proposed tariff as they import materials needed for production comes from China. Any increase in cost, will affect their cost of production, forcing them to increase the price. This will put them in a disadvantaged situation, which might be worse than the period before the tariff was imposed.
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