Businesses are bracing for disruptions in sales and supply chains as the U.S. and China hurtle toward levying tit-for-tat tariffs on billions of dollars in automotive products, farm crops and other goods.
As The Wall Street Journal reports, the U.S. is set to impose $34 billion in tariffs on imported Chinese machinery, auto parts and medical devices on Friday. Barring a last-minute reprieve, China has said it’s prepared to respond immediately with equivalent tariffs on U.S. products including soybeans and sport-utility vehicles.
The battle threatens to disrupt commerce around the globe, and the consequences are already being felt.
Take American cheese makers, for example. The Wall Street Journal also reports those that rely on foreign sales are suffering as China and Mexico raise tariffs on U.S. mozzarella and provolone.
BelGioioso Cheese Inc., a second-generation family company in Wisconsin, has seen sales to Mexico drop since officials there implemented tariffs of up to 15% in early June on most U.S. cheese. The levies were a response to tariffs the U.S. placed on Mexican steel and aluminum.
Mexico is slated to raise its levy on most U.S. cheese today to as much as 25%.
“It’s a nightmare,” says BelGioioso President Errico Auricchio.
U.S. dairy exports hit a record in April, according to the U.S. Dairy Export Council. Nearly a fifth of milk produced in the U.S. leaves the country, and dairy exports have nearly doubled from a decade ago.
Read the full story on Chinese tariffs, and the full story on American cheese makers.
