Introduction
President Trump's approach to trade policy — using import tariffs and other punitive measures as leverage when negotiating international agreements — is forcing many companies to restructure their global supply chains, which often took decades to develop. International trade rules established after World War II, combined with technological breakthroughs such as robotics, cloud computing and software, have resulted in intricately connected worldwide supply chains that have cut costs and boosted profits. The shifts also have cost thousands of U.S. manufacturing jobs. Trump says his strategy will change that, but many companies and economists say imposing tariffs at levels unseen since the 1930s will not rein in rivals such as China, the world's second-biggest economy and America's biggest trading partner in 2018. As U.S. companies scramble to find non-Chinese suppliers and brace for lower profits, they warn that the cost of the tariffs eventually will mean higher consumer prices. And China has retaliated by imposing its own tariffs on U.S. goods or halting purchases of American farm products, triggering fears of a prolonged “cold” trade war between the two countries.
President Trump holds a chart of examples of unfair tariffs during a 2019 White House meeting. Many U.S. manufacturers are scrambling to find alternative sources for parts, labor and supplies after Trump imposed tariffs on imports, especially from China. The president says he wants to combat unfair trade practices. (Getty Images/Bloomberg/Alex Edelman)
|
|
|
