Some anonymous sources, which are close to President Trump have revealed some worrisome news. According to the sources, President Trump is thinking about imposing tariffs on up to $60 billion in Chinese imports. Out of this, the telecommunications sector will be most affected. Chinese tech giants, Vivo, Xiaomi, Huawei, OnePlus will have a hard time entering into American markets if the news is true.
Lately, Trump had been in the news for not allowing Broadcom to buy the smartphone chips manufacturing giant Qualcomm. Apart from this he also announced tariffs on Aluminium and steel, in an effort to force American industries to get these metals from other American companies only.
Well, there are a lot of reasons behind taking this step and a lot of consequences as well, which will be a problem for different markets of both the countries. China already has imposed a lot of restrictions on companies in case they want to sell their products in China. The same will be imposed by Trump but only for China, to which China could retaliate in different ways. Either it will take down some of its restrictions or by refusing to work with American companies that use China’s workforce for manufacturing and labor. Following this, the American economy will also be likely to take a massive hit, as basic necessities like clothing would get higher prices.
One of the reasons of Trump taking down the Broadcom and Qualcomm deal was Broadcom’s association with China. It will be interesting to see whether America will retaliate against China’s retaliation.