The beginning of July, the United States placed tariffs on trading partners around the world. These tariffs range from 10 percent on imported aluminium to 25 percent on steel. As a result, the European Union, Canada, China and Mexico have all implemented retaliatory tariffs on American goods that concentrate on agricultural, food and beverage products. Broken down, what do these tariffs look like?
Thus far, the European Union has placed 25-percent tariffs on $3.4 billion worth of American goods. Many of the E.U. tariffs are for food and beverage items (e.g. denim, orange juice, tobacco, whiskey and peanut butter), most of which are not generally purchased online from U.S. sellers. Because of this, the E.U. tariffs are not expected to have a significant impact on U.S. ecommerce vendors who sell to E.U. countries.
The Canadian government has imposed tariffs on nearly US$12.5 billion of American exports. Over 40 U.S. steel products are taxed at 25 percent, and a 10 percent tax has been levied on around 80 other American items (maple syrup, coffee beans, jam, etc.). These tariffs will have a limited direct effect on ecommerce sales, from Canadian consumers to U.S. merchants.
Mexico has also joined the E.U. and Canada in placing tariffs on U.S. products. As of now, there are 20 percent tariffs on almost $3 billion worth of U.S. products in retaliation for increased U.S. tariffs on Mexican steel. The Mexican government took action on June 5, eliminating preferential tariffs established under NAFTA on some products (e.g. pork, whiskey and potatoes). Other agricultural items like apples, cheeses and cranberries have also been added to the list.
The majority of tariffs the U.S. has placed on China – $34 billion worth of Chinese exports – is in the B2B market. In response to President Trump’s threat to impose tariffs on another $200 billion in Chinese exports, China has placed 25 percent tariffs on agricultural goods like pork and soybeans. President Trump has also expressed his willingness to tax all of the $505 billion in goods that Chinese companies sell to the United States (as of 2017).
Has your business been affected by the current trade war? Experts are saying that any escalation in the tariff war that results in more goods being taxed will raise overall consumers prices; thus, dampen both ecommerce and brick-and-mortar sales. Now, it is more important than ever to make the consumer experience as positive as possible.
One way you can accomplish this is by making sure your ecommerce business offers the best in payment processing options. Customers today expect to have convenient and multiple payment options. Consider the many merchant provider reviews – like worldpay review – that Best Payment Providers has to offer.
Author Bio: Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of the industry and worldpay review has helped thousands of business owners save money and time.