The effects reach far beyond soy beans and tennis shoes
For more than a year, President Trump has been waging an intense trade war with China, culminating in both sides increasing their tariffs on imported goods. With 25 percent tariffs levied on $200 billion of Chinese goods, Trump is “still threatening to slap duties on another $325 billion of goods,” reported CNBC. The fallout has been considerable. According to the business news outlet, more than 50 U.S. companies are reportedly pulling their production operations from China.
And it’s not just U.S. companies that are shifting their manufacturing from China; it’s also a “handful of Chinese companies” that are reconsidering their production base. Citing a report in Nikkei, CNBC noted that “Chinese multinational electronics company TCL is moving its TV production to Vietnam, while Chinese tire maker Sailun Tire is transitioning its manufacturing line to Thailand.”
The rippling effects of the trade war have also been felt for some in the U.S. cannabis market. Julia Jacobson, CEO of Oakland, California-based Aster Farms, a sustainable cannabis company, said that because most of her company’s packaging is produced in China, they are being hit with 25 percent taxes on their orders. “Our custom tins for our pre-roll pack were finished, but not shipped when the tariffs first kicked in,” she related. “It resulted in our shipment being delayed for two months and was only released after we paid an additional 25 percent.”
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