Question

what are some impacts of moving tariffs on products imported from China in overall Business Strategy in the California agriculture industry. how could this effect california

Answer 1

California agriculture industry was the hardest hit by the China-U.S. trade disputes, with the biggest fall in exports to China. Tariffs and potential tariffs have caused an alarm for California's agricultural sector. As Trump moving tariffs on products imported from China, China also retaliated by cancelling purchases of agricultural products, one of the biggest U.S. exports to that country. Most of agricultural products have been subjected to a rise in import tariffs in the tit-for-tat maneuvering between Chinese President Xi Jinping and Trump. The U.S government could develop subsidies to negate tariffs effect; but these subsidies will come out of the pockets of consumer’s. The cost of tariffs on Chinese products by America exclude the expense of subsidies to farmers across the U.S. paid by the Trump administration, including California and the Valley for making up for their potential sales lost to China. The tariffs on agricultural goods have lead to a very negative impact on California. Moreover the tariffs add to the cost of foreign goods coming into a country. It means that U.S. exports to China would become more expensive for Chinese consumers, while U.S. consumers pays higher prices for goods imported from China.