Proposed Tariff on China and its Effects on Small Businesses

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Running head: PROPOSED TARIFF ON CHINA
Proposed Tariff on China and its Effects on Small Businesses
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Author’s Note

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PROPOSED TARIFF ON CHINA
Proposed Tariff on China and its effects on Small Businesses
Introduction
Tariffs have emerged as one of the biggest topics in the news almost on a daily basis. As
the United States, china together with several other countries have been fully dragged into a
number of debates on quite a number of trade deficits together with certain conditions of trade
related disagreements (Adelzadeh, 2017). Whatever one thinks of tariffs when it comes to it
being right or wrong, it is clear beyond any reasonable doubt that they have put much focus in
their headlines where both the united states and china have clearly come on board to enact new
tariffs that appear to be punitive, this is set to act against each one of them. Moreover, the impact
of the tariffs goes far beyond newspapers and has been able to have a real world effect on various
types of businesses. Moreover, tariffs can be best defined as specific taxes that are directed on a
certain group of imports and are normally implemented with an intention of hurting a wide range
of imports and exports originating from a particular country within a particular industry (Bai,
Law & Wen, 2016). The proposed tariff was brought on board with an intention of adequately
solving a wide range of issues within the market platform. Moreover, it also focuses much on
subjecting the entire business sector to a wide range of conditions as far as their operations are
concerned. In addition, it is something that has greatly captured the attention of a wide ranges of
personalities together with organizations most so the ones who are attached to different types of
businesses (Baker & Sinkula, 2016). Most of them have been able to come on board with various
complaints pertaining how negatively they have been affected in terms of accomplishing a wide
range of their future goals and objectives. A trade war between the US and china is something
that has been heating up throughout this year with the US government levying tariffs of
approximately $250 billion of all the imported goods from china. Quite a number of economists

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PROPOSED TARIFF ON CHINA
together with several other business groups have been able to clearly come on board to warn that
higher prices that tend to originate from the tariff is geared towards hurting a huge number of
small businesses together with consumers known to be existing within the market platform (Xin
& Pearce, 2016).
Literature Review
On September 8th, China was able to announce a total of $60 billion US dollars in the
retaliatory tariff following the announced intention of the United States to add tariffs on
additional $200 billion dollars attached to various goods. The tariff is known to have indirect
and unintended consequences and at the same time, it is capable of impacting on a wide variety
of small businesses (Yang, 2015). In China alone, small businesses make up to about 90% of
employer companies and an approximation of 48% of the private workforce. Due to this, their
collective well-being is known to have a huge effect on the economy in terms of employment,
wages together with growth of various aspects. In other words, their economic values appear to
be one of the most significant (Lockwood, 2015). One of the major examples associated with the
unexpected consequences of the tariff in terms of affecting small business could be seen in a
small business like the bakery business. For instance, that regulatory purchases various types of
products which normally include things like pie tins and whipped creams. A bakery being one of
the small business that is very far from various businesses that are found in the steel or even the
aluminum industry, The odds are that the relevant companies that are known to have the
capability of making either pie tins or whipped cream will adjust their prices to greater levels in
order in order to fully reflect on the new costs. Due to this, the small bakery that is an example of
small business known to be operating on a razor thin margin ends up obtaining a good portion of
the new costs from a wide range of suppliers thereby leading to the emergence of serious