CNBC on July 28th indicated US ports as the frontline in the trade war with China. Citing interviews with port managers, the CNBC article claims imposition of more duties (estimated to total over $200 billion worth of Chinese goods) will result in cancelled shipments, less container traffic and lost jobs.
One port director from Long Beach believes further duties will impact the port, the state and the nation as a whole. The LA/LB port handled $173 billion in Chinese imports last year and account for 1/3 of all the shipped goods from China to the US.
Last year, $505 billion in goods arrived from China last year with about $130 billion in US goods to China. This difference in the goods arriving versus leaving is part of the $375 billion trade deficit President Trump vowed to lower while on the campaign trail in 2016.
There are currently in place tariffs on $34 billion in Chinese goods that resulted in China also imposing an equal $34 billion in US goods to the mainland. If List 2 and 3 become effective, the tariffs would cover around $200 billion more in Chinese goods.
The port director in Long Beach claimed the import business supports a million jobs throughout Southern California and slowdowns in China trade could result in layoffs, leading to loss of local and state tax revenues generated by business impacted by a slow down in trade.
If you have any questions how the tariff lists will impact your business, or for a free consultation on whether your goods are on one of the three lists, contact experienced trade attorney, David Hsu at 832.896.6288 or by email at: email@example.com.