U.S.-China Tariffs Hit 145% Amid Signs of De-escalation
On Thursday, the U.S. administration clarified that tariffs on Chinese imports now total 145%. This figure includes a base 125% tariff, along with an additional 20% “fentanyl tariff” applied to select Chinese goods.
In response, China announced on Friday that it would raise tariffs on American products to 125%. President Xi Jinping commented that China “is not afraid,” reinforcing the country’s firm stance amid growing trade tensions.
However, there may be signs of relief on the horizon. On CNBC last night, your humble editor heard the President indicate that he does not anticipate any further tariff increases on Chinese goods. The Wall Street Journal echoed this sentiment Friday morning, reporting that “Beijing signaled it wouldn’t match any further increases by Washington.” This suggests the current cycle of retaliatory tariffs could be coming to a close, potentially paving the way for future reductions on both sides.
Meanwhile, EdisonReport has confirmed a price increase from Keystone, influenced by the current trade climate.
During the show I ran into Dan Kohnen, President, OCL Architectural Lighting, Dan said, “It’s hard to run a business when you don’t know what is coming next.”
Last night, I discussed these latest developments with Charles Stone, Principal of Fisher Marantz Stone (FMS). He offered several insightful observations on the long-term implications of tariffs, which you can read about here.