March 23, 2018

It is how trade wars catch flame. President Donald Trump has proposed tariffs on aerospace, machinery, and information and communications technology products imported from China. Beijing swiftly replied with its own tariffs on U.S. fruits, wine, steel pipe and pork, among other goods.

Here at home, some industries are particularly at risk. That's because companies in these sectors not only import parts and materials from China, but also often export finished products there as well.

There are three primary mechanisms by which U.S. tariffs on China could hurt American companies. Tariffs on Chinese imports would increase the cost of raw materials for U.S. businesses, forcing them to pay more to make the same goods, whether cars, appliances or electronics. China's reciprocal tariffs make U.S. goods more expensive for Chinese consumers, hurting the many businesses trying their luck in the world's largest market.

Read more:

https://www.cbsnews.com/news/trade-war-with-china-u-s-businesses-most-at-risk/