Increased tariffs imposed on China have resulted in reduced imports from the country to the U.S according to the Wall Street Journal. The move has also affected the kinds of goods America sources from China.
US tariffs now cover goods worth $250 billion a year, a significant drop from $370 billion recorded in 2018 and 2019 as US companies turn to other countries for imports.
Communication tools and computer parts were the most affected by the tariffs leading to a decline of about $15 billion for each from their highest in 2018.
The levy imposition has led to a decline in tariff revenue to the U.S from $76 billion in 2020 to $66 billion in 2021.
In 2018-19 Trump administration imposed taxes on China making its products more expensive to enable U.S factories to thrive.
Biden’s administration has hinted at reviewing the tariff policy, but has not given sufficient clues that he will remove the duties.
The dollar is currently gaining against the Yuan. USDCNY is up 0.33%
