📉 Currently, the US imposes tariffs of up to 145% on Chinese goods.
- China retaliates with a 125% tariff on US goods.
- Both sides have almost ceased trade. Prices for goods and production equipment have skyrocketed.
- Some important goods are being tacitly exempted from tariffs by both sides, but official negotiations have not yet taken place.
🇨🇳 Manufacturing activity in China is plummeting.
- The PMI production index for April shows the lowest output since 2023.
- New export orders are at their lowest since December 2022.
📈 Trump praises some positive signals from China regarding tariff negotiations, but emphasizes that negotiations must be fair.
🏭 More than 180 US companies have submitted 1,100 applications for tax exemptions for equipment imported from China.
- Tesla, Ford, Hitachi, and many businesses say there are no alternative domestic production machines.
- For example: lithium battery machines, industrial sewing machines, gas presses... there are no alternative products in the US.
📉 US manufacturing in April saw the sharpest decline since 2020.
- Businesses are hesitant to invest. The supply chain is disrupted.
- Orders are temporarily postponed. Equipment prices are rising. Profits are shrinking.
🧮 60% of imports to the US are components and machinery for domestic production.
- Without equipment, bringing production back to the US is just a slogan.
- Some businesses say: you can't tax machinery and also expect companies to produce in the US.
🦉 In summary:
✅ High taxes will cause businesses to collapse, and citizens will bear the high costs. It must be reduced.
✅ Trump can reduce taxes, but it must be through fair and clear negotiations with China!