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    Current page location: Home > Answers > After declaring a trade war with China, which major products are currently scarce in the U.S. due to their decreasing number of imports as a consequence of higher tariffs?
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    Siyu Song
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    After declaring a trade war with China, which major products are currently scarce in the U.S. due to their decreasing number of imports as a consequence of higher tariffs?

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    • Time:2018-11-05 11:23:05
    After declaring a trade war with China, which major products are currently scarce in the U.S. due to their decreasing number of imports as a consequence of higher tariffs?
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    Krise Wu
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    Go into any average Walmart some time and survey where products are made! China will come up on the top of the list.

    Because American manufactures so few things domestically, most of the things being tariffed have no substitutes and thus demand is inelastic - companies are still buying the same things from China but passing on the tariff in the price, and consumers of those products generally have no choice to not buy the items also so they pay them and merely have less left over for other things.

    In the long term, the tariffs may force more products to be manufactured in the US again but it will take many years of tariffs for that to happen. This is because it takes a long time to build factory again that were torn down, to obtain the manufacturing equipment required (much of which is manufactured in China), to train up Americans to run the equipment and finally to compete and win consumers over to what is likely to be prices at least as high as the tariffed Chinese products.

    #1Floor 2018-11-05 16:53:00 Reply(0)
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