Revised Tariffs Against China Hit Non-Chinese Supply Chains Even Harder

President Trump’s revised tariffs to protect US technology and intellectual property—announced June 15, 2018 and scheduled to be implemented in two phases starting July 6, 2018—would mostly miss Chinese companies and instead hit non-Chinese multinational corporations operating in China. Compared with the originally proposed tariffs released April 3, 2018, the revised set of tariffs affects an even higher share of products from non-Chinese corporations, especially for transportation equipment and chemicals. The tariffs are aimed at patent-intensive industries that rely on global supply chains, disadvantaging American producers and harming US allies operating in the region.

This PIIE Chart is adapted from Mary E. Lovely and Yang Liang’s Policy Brief, Trump Tariffs Primarily Hit Multinational Supply Chains, Harm US Competitiveness, and updates a previously published PIIE Chart with new data.