• Trump’s tariffs on China could cost the US in its fight against the coronavirus

    14 Apr 2020 | Economic News


U.S. tariffs on imported medical equipment, particularly from China, have added to the struggle in America’s fight against the coronavirus outbreak.


The U.S. and China have been embroiled in an escalating tariff war since 2018. Across multiple rounds, tariffs were levied on essential medical supplies from China including medical protective clothing, personal protective equipment (PPE), CT systems and disposable medical headwear.


Meanwhile, the fast-spreading coronavirus disease has led to cases growing at a rapid pace throughout the world including the U.S., which is now the country with the highest number of reported cases and deaths. There are currently more than 555,000 reported cases, and over 22,000 deaths in the U.S., according to the latest data by Johns Hopkins University.


Compared to other countries with a “more flexible” approach toward importing PPEs, imposing tariffs has “further undermined U.S. preparedness and response to the outbreak,” Yanzhong Huang, senior fellow for global health at the Council on Foreign Relations, told CNBC in an email.


Without tariffs, the U.S. would be in “a better position in this bidding game” with so many countries scrambling to import critical medical products from China, he added.


States across the U.S. have reported that the number of intensive care unit beds are running out, while New York City Mayor Bill de Blasio has warned that respirators could run out soon as the city’s hospital resources are stretched.


With the outbreak intensifying in large cities and states, health-care workers have also been scrambling for protective gear and struggling with a shortage of medical equipment as the number of cases surge.


Some $3.3 billion in imports of critical health care products still face 7.5% tariffs, while $1.1 billion of imports bought that could potentially treat Covid-19 remain subject to Trump’s 25% tariffs, according to data from the Peterson Institute of International Economics.


“The administration’s tariffs on Chinese medical products may contribute to shortages and higher costs of vital equipment at a time of nationwide health crisis,” wrote PIIE’s Chad Bown in a report dated March 13.


Reference: CNBC


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