With President Donald Trump’s tariffs aimed at a TV and display technology gear and components, bargain TVs made in China are brewing to become more expensive soon.
The additional duties are foreseen to increase the price of Chinese-made TV brands like those manufactured by Hisense Electric Corporation and TCL Electronics Holdings Limited.
Suppliers from Tianma Microelectronics and BOE Technology Group Company are reported to be affected as well.
The imposition of tariffs on TVs made in the second largest economy may present negative impacts. Even South Korean competitor Samsung Electronics considers rethinking its position because it has a huge production plant in China.
Korea Investment Management fund manager Jung Sang-jin remarked that it would be quite difficult for Chinese TV manufacturers to recuperate from the U. S. Government’s new tax policies.
Though some technology industries from the Korean peninsula may benefit in the near future, Jung said that the long-term impact could affect South Korean firms.
However, Jung stated that the U. S. Government’s imposition of taxes on inexpensive Chinese imports might not be forever.
The Trump administration carried on with its agenda to impose duties on $200 billion more of Chinese products on Tuesday. This maneuver is reported to realize the president’s recent threats to intensify the trade battle with Beijing.
The sudden tax hit struck just as TV manufacturers were primed to reserve display panels in advance for the Christmas shopping season.
A senior official of the U. S. Government described the $200-billion amount as equivalent to the Chinese exports to America. The tariffs will be immediately implemented.
A two-month review process will still go on to evaluate the economic strategy and hearings will take place from August 20 to 23.
The duties list primarily concentrates on products like robotics and IT which are included in the Made in China 2025 agenda. The latter is a strategic scheme aiming to make China a dominant actor in important international industries.
U.S. Trade Representative Robert Lighthizer explained that the US Government has been very lucid to China regarding its issues about the trade.
President Trump has patiently persuaded the East Asian economic giant to halt its unjust practices and to take part in the genuine market competition.
However, Lighthizer said that China did not react. Instead, it started to fight back against American products without any international justification or legal basis. China started imposing tariffs on $34-billion American exports and threatening duties on another $16 billion.