Free Daily Headlines :

  • COVID-19
  • Vaccine Info
  • Money
  • Politics
  • Education
  • Health
  • Justice
  • More
    • Environment
    • Economic Development
    • Gaming
    • Investigations
    • Social Services
    • TRANSPORTATION
  • Opinion
    • CT Viewpoints
    • CT Artpoints
DONATE
Reflecting Connecticut’s Reality.
    COVID-19
    Vaccine Info
    Money
    Politics
    Education
    Health
    Justice
    More
    Environment
    Economic Development
    Gaming
    Investigations
    Social Services
    TRANSPORTATION
    Opinion
    CT Viewpoints
    CT Artpoints

LET�S GET SOCIAL

Show your love for great stories and out standing journalism

Conn. companies brace for new fallout from U.S.-China trade war

  • Money
  • by Ana Radelat
  • May 13, 2019
  • View as "Clean Read" "Exit Clean Read"

Washington – The U.S. trade war with China has already taken a toll on Connecticut companies and threatens to take a bigger bite out of a wide swath of state businesses – from dairy producers to manufacturers like Stanley Black and Decker.

On Monday, China announced it will raise tariffs on $60 billion in U.S. goods in retaliation for the Trump administration’s latest decision to increase duties on $200 billion worth of Chinese products.

The U.S. stock indexes plunged as the trade war between the world’s two largest economies intensified.

But President Donald Trump says a tough line is necessary because the Chinese government is ripping off American consumers and businesses by unfairly subsidizing Chinese companies, forcing technology transfers from U.S. firms and flooding global markets with cheap goods.

Even before the latest escalation, the impact of the trade war had been felt in Connecticut. On Monday, state companies were trying to assess the impact of the latest trade battle.

“It’s a fluid situation,” said Joe Budd, spokesman for the Connecticut Business & Industry Association.

China is Connecticut’s sixth largest export market, purchasing $943 million in commodities from state companies in 2018. France is the largest purchaser of goods made in Connecticut, followed by Germany and Canada.

As of June 1, some of those goods made in Connecticut will become more expensive – and less attractive – to Chinese consumers as Beijing imposes new tariffs on them. The tariffs would range from 5 percent to 25 percent.

Meanwhile, the imported steel and aluminum Connecticut manufacturers rely on has become more expensive as the U.S. imposed tariffs on those metals earlier in the trade war.

New Britain-based Stanley Black and Decker told investors last month that tariffs had increased the “headwinds” that have buffeted the company.

CEO James Loree said his company raised prices to help offset steeper input expenses. But even that did not make up for the higher cost of material, he said.

“If the tariffs go away, that’s a pretty significant reduction in headwinds,” Loree said.

But now instead of relief, the company may feel stronger headwinds. Stanley Black & Decker plans to update investors on Thursday on the impact of the new volleys of tariffs between the United State and China.

Another Connecticut company, Groton-based Garbo Lobster, lost a significant portion of its business since China doubled tariffs last year on live U.S. seafood in retaliation for U.S. levies on Chinese imports. Garbo Lobster was forced to close its facility in January.

Meanwhile, Connecticut’s dairy producers benefited as U.S. sales to China increased 17 percent in the first half of 2018, helping to raise the price of milk and cheese.  But those sales dropped 33 percent in the second half of the year after the Chinese imposed retaliatory tariffs on American dairy products.

China said on Monday it would target American agricultural products when it imposes its new levies on June 1, provoking concern in the nation’s dairy industry.

“You hate to see the uncertainty of trade conflicts cloud a brightening horizon,” said Alan Bjerga of the National Milk Producers Federation.

Connecticut’s aerospace industry, which includes helicopter maker Sikorsky, jet engine manufacturer Pratt & Whitney, and dozens of smaller companies that make airplane components, is also anxiously awaiting  China’s next step.

“Global industry would be best served by a prompt, negotiated end to this dispute rather than a delay in reaching a resolution, which risks triggering ever-escalating retaliatory tariffs,” said Dan Stohr, spokesman for the Aerospace Industries Association. “We urge both sides to come together in good faith negotiations to reach an agreement that best serves the goal of free, fair and sustainable trade.”

Connecticut consumers will also feel the impact of the trade war, as hundreds of Chinese-made imports – from dog collars to computers – become more expensive as the cost of the tariffs is passed along to consumers.

“The costs of U.S. tariffs have fallen entirely on U.S. businesses and households, with no clear reduction in the prices charged by Chinese exporters,” Goldman Sachs analysts wrote in a note to investors Monday.

Trump on Monday tweeted that the United States is winning the trade war.

“The unexpectedly good first quarter 3.2% GDP was greatly helped by Tariffs from China. Some people just don’t get it!,” the president said.

The president also warned China against imposing retaliatory tariffs as it “will only get worse!”

The Trump administration may not be done trying to punish China. Trump has threatened to put 25 percent tariffs on $325 billion in Chinese goods that remain untaxed.

Sen. Chris Murphy, D-Conn., predicted both parties will come to an agreement, although it’s not clear when that will be.

“My guess is that Trump and the Chinese will likely save face and get a deal,” Murphy said. “But it will be a small deal that Trump will falsely over-hype, and it won’t offset the damage that’s already been done to US consumers.”

Sign up for CT Mirror's free daily news summary.

Free to Read. Not Free to Produce.

The Connecticut Mirror is a nonprofit newsroom. 90% of our revenue comes from people like you. If you value our reporting please consider making a donation. You'll enjoy reading CT Mirror even more knowing you helped make it happen.

YES, I'LL DONATE TODAY

ABOUT THE AUTHOR

Ana Radelat Ana has written about politics and policy in Washington, D.C.. for Gannett, Thompson Reuters and UPI. She was a special correspondent for the Miami Herald, and a regular contributor to The New York TImes, Advertising Age and several other publications. She has also worked in broadcast journalism, for CNN and several local NPR stations. She is a graduate of the University of Maryland School of Journalism.

SEE WHAT READERS SAID

RELATED STORIES
Connecticut House joins national civil rights campaign over Black hair styles
by Mark Pazniokas

The Connecticut House voted for a bill intended to protect Black women from discrimination over their hair.

House approves big municipal aid pledge, tax incentive bills
by Keith M. Phaneuf and Mark Pazniokas

The House approved bills Wednesday pledging $100 million-plus in new municipal aid and offering tax incentives to attract data centers.

CT legislature poised to make early budget pledge to help cities and towns
by Keith M. Phaneuf

The state House is expected to approve more than $100 million in new, annual PILOT grants to municipalities.

Connecticut GOP picks Susan Hatfield as state chair
by Mark Pazniokas

Susan Hatfield, vice chair of the Connecticut Republican Party, will complete the term of the former chair, J.R. Romano.

Senator alleges voter fraud, but no complaint was filed
by Mark Pazniokas

Rob Sampson said a voter in his district was told an absentee ballot already had been cast in her name.

Support Our Work

Show your love for great stories and outstanding journalism.

$
Select One
  • Monthly
  • Yearly
  • Once
Artpoint painter
CT ViewpointsCT Artpoints
Opinion Gas pipeline will threaten water quality, wildlife and wetlands
by Susan Eastwood

The Connecticut Department of Energy and Environmental Protection has granted tentative approval of the 401 water quality certification for the Pomfret to Killingly natural gas pipeline. I urge DEEP to deny the 401 certification, as the proposed pipeline would violate the Connecticut’s water quality standards, and the conditions in the draft certification fail to protect our streams, wetlands, and wildlife.

Opinion Connecticut and the other Connecticut. Which will endure?
by Ezra Kaprov

What comes to mind when you hear the word ‘Connecticut’? Possibly, you think of a 43-year-old Puerto Rican man who arrived here with his family following Hurricane Maria. He works full-time as a machinist at the Sikorsky plant, and he coaches a prizefighter on the side.

Opinion COVID-19 increases urgency for legislature to pass medical aid-in-dying law
by Dr. Gary Blick

The COVID-19 crisis has exposed the profound tragedy of loved ones dying alone, in a hospital or nursing home, without the care and comfort of loved ones surrounding them. This pandemic also demonstrates the fragility of life, the limits of modern medicine to relieve suffering, and has magnified the systemic racial disparities in our healthcare system, resulting in higher hospitalization and death rates for people in communities of color. We must eradicate these disparities, so everyone has equal access to the full range of end-of-life care options.

Opinion Three fallacies and the truth about vaccines
by Kerri M. Raissian, Ph.D. and Dr. Jody Terranova

Connecticut’s Public Health Committee recently heard public testimony regarding HB6423 and SB568 --  bills that would remove the religious exemption (the medical exemption would rightfully remain in place) from vaccination in order to attend school.  The religious exemption allows parents to effectively opt their children out of vaccines. In doing so, these families can still send their children to Connecticut’s schools, daycares, colleges, and camps.  This places other children at risk of contracting vaccine-preventable illnesses, and it is imperative the Connecticut legislature remove this exception.

Artwork Grand guidance
by Anne:Gogh

In a world of systemic oppression aimed towards those of darker skintones – representation matters. We are more than our equity elusive environments, more than numbers in a prison and much more than victims of societal dispositions. This piece depicts a melanated young man draped in a cape ascending high above multiple forms of oppression. […]

Artwork Shea
by Anthony Valentine

Shea is a story about race and social inequalities that plague America. It is a narrative that prompts the question, “Do you know what it’s like to wake up in new skin?”

Artwork The Declaration of Human Rights
by Andres Chaparro

Through my artwork I strive to create an example of ideas that reflect my desire to raise social consciousness, and cultural awareness. Jazz music is the catalyst to all my work, and plays a major influence in each piece of work.”

Artwork ‘A thing of beauty. Destroy it forever’
by Richard DiCarlo | Derby

During times like these it’s often fun to revisit something familiar and approach things with a different slant. I have been taking some Pop culture and Art masterpieces and applying the vintage 1960’s and 70’s classic figures (Fisher Price, little people) to the make an amusing pieces. Here is my homage to Fisher -Price, Yellow […]

Twitter Feed
A Twitter List by CTMirror

Engage

  • Reflections Tickets & Sponsorships
  • Events
  • Donate
  • Newsletter Sign-Up
  • Submit to Viewpoints
  • Submit to ArtPoints
  • Economic Indicator Dashboard
  • Speaking Engagements
  • Commenting Guidelines
  • Legal Notices
  • Contact Us

About

  • About CT Mirror
  • Announcements
  • Board
  • Staff
  • Sponsors and Funders
  • Donors
  • Friends of CT Mirror
  • History
  • Financial
  • Policies
  • Strategic Plan

Opportunity

  • Advertising and Sponsorship
  • Speaking Engagements
  • Use of Photography
  • Work for Us

Go Deeper

  • Steady Habits Podcast
  • Economic Indicator Dashboard
  • Five Things

The Connecticut News Project, Inc. 1049 Asylum Avenue, Hartford, CT 06105. Phone: 860-218-6380

© Copyright 2021, The Connecticut News Project. All Rights Reserved. Website by Web Publisher PRO