Impact of the increase in tariffs on imports of chinese products - Personal opinion

josevas217 (79)modin Project HOPE • 7 months ago

Hello friends of Project HOPE, today I would like to share information with you about an issue that I consider important, because it will have an impact on many things, in many aspects, and I am talking to you about the states, like the United States, that are raising tariffs. to Chinese imported products.

Considering that China is considered the world's factory, and that practically all the countries in the world buy many things from it, not only at a technological level, but in any area one can imagine, it is logical to think that if the cost of tariffs rises, this It will raise the prices of everything, however, what will happen is not only negative, there are some aspects that I would like to highlight below.

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The recent decision to increase tariffs on imports of Chinese goods has generated significant debate about its possible consequences. This measure, driven by the intention to protect the local economy and reduce the trade deficit, has both positive and negative implications for the country. Although in particular I must say that it seems to me rather that it is a political decision, since it is an election year in the US.

*There are some potential benefits that we could highlight from this measure, as I understand it:

One of the main benefits of increasing tariffs is the protection of domestic industry. As imported products become more expensive, an incentive is created for consumers and companies to look for local alternatives. This can boost national production, generating more employment and strengthening the domestic economy. Furthermore, local companies could see an opportunity to expand and increase their competitiveness in the market, reducing dependence on foreign products.

Another positive aspect is the possibility of reducing the trade deficit. By reducing imports, we seek to balance the country's trade balance. This adjustment can be crucial to improve the economy in the long term, reducing external debt and stabilizing the local currency.

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Logically, there are also non-beneficial aspects, for example, the increase in tariffs also carries a series of negative effects. One of the most immediate is the increase in product prices. all of us, consumers, will be forced to pay more for goods that we used to purchase at lower prices, which can affect the purchasing power of the population, especially of those with lower incomes.

This increase in the cost of living can generate social unrest and pressure on the government to find effective solutions. So in this aspect, it may have its non-beneficial aspect on the political level.

In addition, companies that depend on imported components or materials for their production will also be affected. The increase in import costs can translate into an increase in production costs, which could reduce the competitiveness of these companies both locally and internationally. This could even lead to a reduction in production and, in the worst case, the closure of some companies.

As you can see, raising tariffs on imports can have its negative effect, which if you don't know how to handle it, can be more harmful than you think, don't you think?