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Tariffs have a diverse impact on trade heavy Washington State

Economy

Tariffs have a diverse impact on trade heavy Washington State

Economy

Washington State, one of the country’s most dependent states, is facing some difficult issues due to the trade war between the two leading economic countries US and China. However, polysilicon plant employees located at central Washington hopes that the trade war between US President Donald Trump and China might be the best time to stay employed. The polysilicon plant is estimated worth $1.7 billion.

US-based REC Silicon is ineffective to compete with Chinese industries due to the imposition of government subsidies and heavy tariffs and currently suspending its services, the firm used to manufacture products that were used in solar panels. The company consists of around 500 employees in total, and out of these employees, 200 workers will be kept on the payroll for the period of 6 months. This decision is considered hoping that pressure from the US President will allow China to sign a trade deal. However, the possibilities are unclear.

The supply of Washington products such as dairy, seafood, apples, soy, and wheat to foreign countries has declined. China has even signaled out that it could order a few of Boeing planes from the US, and this particular sector accounts to a large portion of the state’s export.

Robert Hamilton, Trade adviser of Washington State Governor Jay Inslee said few companies had appreciated the work of US President Trump, but most of the companies need to digest high costs or needs to increase the price to their customers. Most of them had various investment plans but now their exports are suddenly declining, and they are not sure of investing in the financial sector

While on the other side, for some industries, the President’s administration policies are like complicated medicines and are revealing the difficult impact in the Washington State- one of the dependent states of the nation.

The well-known fishing boat firm of US has noticed cancellation of orders and subsidiary of Northwest dairy farmers had to find other international markets. Another firm that is noticing difficulty is electric bike company of Seattle, Rad Power Bikes, which has restricted its expansion plans.

 Washington alone has exported goods of worth more than $70 billion in 2018, out of which American goods of worth 5 percent were exported and US goods exported to China accounted to 14 percent.

According to Robert Hamilton analysis, the imposition of administration traffic and retaliatory tariffs by US President on countries like Mexico, China, and Canada has driven out more than 15,00 jobs in Washington.

Reports of Washington Council on International Trade say that around 40 percent of jobs are connected to foreign trade.

In 2014, the US had imposed high traffic on the solar panels of China; China countered the US by imposing heavy tariffs on Polysilicon of US. China banned REC from the Chinese market, Francine Sullivan- Business development Vice President of REC stated.

Darigold’s Chief Executive, Stan Ryan informed that the company was expecting of expanding its business in China and in summer it had inaugurated its office in Shanghai, during which the Chinese government imposed tariff hike on dairy products to 25 percent from 10 percent, due to US tariff hike on Chinese goods. The company faced a huge loss, and customers found other suppliers.

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