How far will the trade relationship between the United States and China crack? Will it recover? With the announcement of tariffs on some Chinese products today, it is clear that the situation is getting worse between the two countries with the world's largest economy.
Starting June 15, the United States reimposed a 25% tariff on Chinese-made PC components such as graphics cards, motherboards and frames made in the country. Tariffs were introduced during the Donald Trump administration before being stopped by Joe Biden. But with elections due to take place next November, it has been suddenly re-enforced.
These tariffs will increase costs for American consumers and businesses because the majority of PC components are imported from China. It not only impacts personal computer users but also data centers that require computer server racks.
Just a few weeks ago a new tariff of 100% was imposed on EVs, 25% on iron and aluminum and 50% on Chinese-made semiconductors imported into America. Worried that the same tariff will have an impact on Tesla, Elon Musk is now rejecting the action of imposing a tariff on China's EVs while he is among those calling for it to be imposed.
