Trade is the backbone of a thriving economy. The US economy is likely to receive significant negative impacts due to the recent US-China trade war. This is due to increased tariffs levied on goods imported from China, thus causing a retaliation from the latter on half of the exports from the United States of America. This leads to an increase in the price of goods since imported goods become more expensive due to the taxes imposed. In turn, domestically produced products will also be sold at higher rates even though manufacturers do not have to pay the tariffs.
Will Truck Drivers Be Affected?
It is important to note that Chinese imports are more than half of the containers received at the US ports. A hefty increase in tariffs could cause a dent in the US economy as well as the loss of a lot of jobs in the transport and logistics sector. These are the people who are responsible for moving imports from China from the ports to distribution areas.
Effects on Nationwide Transport
Although trade restrictions have been happening for a while, it is important to note that the relationship between imports and GDP in the US economy has remained constant in years past.
However, the following is more likely to happen:
- Companies that handle large international shipments will have a somewhat bitter experience. This is because it would take a longer time period for trade to filter into other countries.
- An increase in tax would threaten auto transportation since the transport sector would see an increase in the price of fuel. This would cause unrest since repayment will remain unchanged regardless.
- This would consequently result in a decrease in demand for transportation services.
Some people give support to the government’s initiative arguing that in the long run, this would be a solution since trade practices haven’t been fair to them for a long time. They believe the tariffs could level the playing field for a better trading platform.
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