The article discusses the impact of recent tariff increases implemented by the Trump administration, specifically a 170% tariff imposed on goods arriving from China. Business owner Itay Sharon faces a dilemma on whether to absorb these costs or pass them on to consumers, amid uncertainty surrounding future tariffs. The article highlights the broader implications of the U.S.-China trade war, with a temporary truce reducing tariffs to 30% following negotiations, illustrating the volatility of international trade relations and the challenges faced by businesses amidst changing policies.
When Itay Sharon's $3,500 worth of goods arrived at a U.S. port on May 13, the shipment was subjected to a staggering 170% tariff, or close to $6,000.
The uncertainty makes doing business very difficult, Sharon tells TIME. "Trump stunned leaders, economists, and businesses around the world when he rolled out a slate of so-called reciprocal tariffs."
Just a week later, however, he announced a 90-day pause on the higher tariffs to allow for trade deal negotiations, temporarily reducing every country's rate to 10% for most goods.
But following talks in Geneva last weekend, the U.S. and China reached a truce: beginning May 14 and lasting for 90-days, U.S. tariffs on most Chinese goods would be brought down to 30%.
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