The Trump administration increased tariffs on Chinese imports to 25 percent over the weekend, potentially hurting U.S. businesses that have been previously absorbing costs.
With less than a week notice of the hike, U.S. businesses will be severely disrupted as they had limited time and resources to mitigate impact. USA Today reports that the tariffs will affect nearly 6,00 products and parts and greatly reduce jobs.
Some companies have been absorbing the costs when the tariffs were slated at 10 percent, but the increase will have a severe impact on business operations. It is predicted that prices will raise 8 to 12 percent for the consumer, crimping sales and halting investments in emerging technologies.
The tariffs are expected to take a bite out of the U.S. economy, and with the Trump administration threatening to place an additional 25 percent tariff on the remaining $325 billion imported goods from China, it could cost the U.S. 2.1 million jobs and the average family of four more than $2,000 a year, USA Today reports.
However, despite the negative outlook, some industries are still expected to add jobs as some businesses will be forced to buy U.S. made goods.