The looming “List 3” tariff hearings have concluded this past Monday. The discussion, circling the impending decision and deployment of anywhere from 10% to 25% tariffs to be imposed on $200b of Chinese exported products has ended and businesses the world over are awaiting any sign of a final result.
Hearings included major business representation, from the Information Technology Industry Council to the US Retail Federation. According to reports from inside the hearings, responses were mixed. US-based manufacturers enthusiastically supported the proposed tariffs, while others who source raw goods, components or finished items alluded to the potential for far-reaching, deep devastation that could result if the tariffs are deployed.
These hearings followed after China sent a delegation over in the past two weeks to meet with junior staff within The Office of the US Trade Representative. These meetings concluded with effectively no changes or news to report. Individuals close to the hearings and discussions believe that very little will change from the initial proposals.
In financial news, finance experts have become more outspoken of concerns regarding the overall impact to US based corporations. In today’s economy, many corporations operate on a global scale, with sales, manufacturing and revenues being generated from many parts of the world. In the US, some have already begun announcing layoffs as the cost of components or raw materials is already impacting their sales and profitability.
We still have very little in the way of what to expect as September approaches. Hopefully clarity and calm minds will follow soon.