It was no celebratory Cindo De Mayo for consumer tech companies.
President Donald Trump said Sunday (May 5) that he will be raising the tariff on $200 billion worth of Chinese goods from 10 percent to 25 percent as of Friday (May 10), and the tariff on another $325 billion of goods “shortly.” Consumer tech companies warn those tariffs are a tax that hurts workers, savers and retirees.
The good news is that consumer-connected devices–phones, tablets, etc.–were removed from the final list of the $200 billion. The bad news is it still included routers, circuit assemblies and networking equipment the escalation of prices for which that tech groups say could slow the rollout of 5G and closing the digital divide.
See also: Trump Postpones 25% China Tariff Again
That is according to tweets from the president, who had delayed the promised escalation of taxes during talks with China he has said were going well.
For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars….
— Donald J. Trump (@realDonaldTrump) May 5, 2019
….of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!
— Donald J. Trump (@realDonaldTrump) May 5, 2019
The Consumer Technology Association, which was no fan of the 25 percent tariff on high tech imports, or for that matter on tariffs as trade policy, was not pleased, signaling to a president fond of tax cuts that tariffs are the opposite.
“The president is seeking a better trade deal with China,” said CTA president/CEO Gary Shapiro, “[b]ut he must understand the Chinese don’t pay for these U.S. tariffs — American families, workers and companies pay for tariffs. Tariffs are taxes. And implementing these 25 percent tariffs on just five-days’ notice would roil our markets, damage U.S. businesses and do serious harm to Americans’ retirement funds and pensions.”
