Los Angeles County would Become Epicenter for Financial Hit, says Cheung
June 19, 2018 09:52
(Image source from: NBC Los Angeles)
The port of Los Angeles to the aisles of Walmart, the question is ripping that: will President Donald Trump follow through on a threatened tariff war with China?
The head of the Los Angles World Trade Center Stephen Cheung said Los Angles county would become the epicenter for the financial hit.
"Our largest trading partner is China. There is $150 billion of trade with China and Los Angeles every year," said Cheung.
The trade war promises arduous price hikes on goods the United States purchase from China and vice versa. China's levies on local goods from aerospace parts to California produce could make them so expensive that China's consumers won't buy them.
Not merely local manufactures that would be impacted, rather labor force as well that ships, trucks, and distribute goods going both directions.
"This would directly affect our truck drivers, our logistics services and, even retail," said Cheung.
There is a possibility of China hammering U.S. companies operating within its borders.
Cheung says there are 10,000 Chinese companies based in Los Angeles County including electric bus manufacturer Build Your Dreams in Lancaster. Locally, together they are major employees providing 430,000 jobs.
"We don't want them to feel attacked," said Cheung.
The U.S. exports of more than 800 will be subject to tariffs starting July 6. Cheung says what is giving businesses a stomachache is that they don't know if President Trump is bluffing or not.
From producers, labor, and consumers, Cheung is urging everyone to lobby legislators and urge the president to take his finger off the tariff trigger. So much, he says, is at stake.
"If there is one region that stands to lose on this trade deal, it is us," said Cheung.
By Sowmya Sangam