When corporations move to the Chinese market, they’re likely to be required to pay a steep tariff on products they bring home, as well as on services they provide.
The Federal Trade Commission’s annual study of imports, released on Monday, found that the average tariff rate for goods imported from China was 15.4% in 2015.
That’s higher than any other country, the agency found.
The tariffs on services include labor, food, clothing, textiles and furniture, the report said.
The tariffs on the products are higher than those on automobiles and cars, but not by as much.
In many cases, the tariffs are so steep that businesses won’t be able to absorb them, said Jennifer Cogan, a senior fellow at the Center for Strategic and International Studies think tank.
“The tariffs can be as high as 35% and sometimes as high 50% for some products,” she said.
In some cases, Cogan said, the average tariffs for goods that have been imported are higher because some companies are able to get special discounts for those goods, making it harder for businesses to absorb the tariffs.
“These are going to be more of an issue for businesses that are already in trouble because of what’s going on overseas,” she added.
Trump’s administration has said the tariffs would be imposed to help make U.S. manufacturers competitive in the global market, where many other countries are seeking to buy products made overseas.
Cogan said the study was not conclusive and the tariffs could change over time, but it showed that the tariffs on goods would be higher than expected.
“It would appear that the impact on U..
S.-based businesses would be greater than expected,” she wrote.”
We think this is the kind of thing that would be of concern to the Trump administration.
We also think that the administration could make the case that it was justified in the interest of U.K. businesses.”
Trump has proposed tariffs on U, Mexican and Canadian products as a way to help the United States compete.
Cameron said the tariff is a “fair and appropriate response” to the import crisis in China.