Opinion: China's reduced tariffs will have positive impact for American businesses
EDITOR'S NOTE: Boris Epshteyn formerly served as a Senior Advisor to the Trump Campaign and served in the White House as Special Assistant to The President and Assistant Communications Director for Surrogate Operations.
WASHINGTON (Sinclair Broadcast Group) - We are now seeing concrete, positive results for American businesses and the economy as a result of President Trump’s recent trip to Asia and the administration’s efforts overall.
As of December 1, the Chinese Ministry of Finance announced a major drop in tariffs. Chinese tariffs on 187 product categories will be drastically reduced - from an average of 17.3% down to an average of 7.7%.
A tariff is a tax that corporations pay to sell their goods in foreign countries.
For example, if an American company sells products in China worth $1000 it used to pay an average of $173 to the Chinese government and will now be paying an average of $77. That’s a huge difference.
As a result of reduced tariffs American and multinational companies will take in more of the sales price, pay more in taxes in the U.S., keep more of the profit and therefore can grow and employ more people.
Here’s the bottom line, while the media was focused on how President Trump fed fish or shook hands in Asia, the president secured real gains for American businesses in their trade with China. This progress is part of a concerted and ongoing effort by the president to make sure America is not taken advantage of on the international arena.