Monday, October 29, 2012

China-U.S. trade war would hurt California

 A trade war between the US and China would really hurt California because it exports the most goods to China out of all the states.  They exported $14.2 billion in goods and services to China last year.  California is also the nation's leader in solar jobs.  The International Trade Commission is making a decision whether or not the US solar cell manufacturers is hurt by the imports from China.  There are already tariffs of up to 250 percent on Chinese made solar cells.  The tariffs, however, only protect 2 to 3 percent of the jobs in the solar industry.  California companies have already lowered prices to compete with other energy forms such as natural gas.  They will be hurt even more by punitive tariffs.

http://www.sfgate.com/opinion/openforum/article/China-U-S-trade-war-would-hurt-California-3976011.php

1 comment:

  1. With a tariff of "250 percent on Chinese made solar cells that only saves 2 to 3 percent of the jobs in the solar industry", it would be pointless to increase the tariff. The tariff obviously does not help out the solar companies in California. It would also most likely cause China to retaliate with there own regulations on imports from the U.S.. As we discussed in class this could end up canceling out the U.S. tariff anyway. Because California exports so much to China it would be in there best interest not to have a trade war with China. Even if the trade war helped a few solar industries in the U.S. it would ultimately hurt both China and the U.S. as a whole; not just California.

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