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Impact of Tariffs on Manufacturing

By Sunderesh S. Heragu

The U.S. and China are the world’s largest trading partners. Almost $439 billion worth of goods were imported by the U.S. from China in 2024. Trade in the opposite direction was valued at $144 billion. The imports from China to the U.S. represent 13.3% of the total goods imported by the U.S.

President Trump announced tariffs on China and 57 other countries recently but announced a pause for 90 days after the bond market spiked and the stock market saw a steep decline. The tariff regime appears to change on a day-to-day basis. It is neither easy to understand the real reasons for them nor predict the end results. As they stand today, tariffs on Chinese products imported to the U.S. will jump to 125%. For all other countries, the new tariffs are set at 10% for 90 days.

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