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US–China Tariffs Could Hurt US Companies and Consumers

US–China Tariffs Could Hurt US Companies and Consumers

In theory, tariffs are used to make imported goods costlier than domestic goods in order to encourage consumers to buy domestic goods. The United States imposed tariffs on Chinese (FXI) goods to make American goods cheaper and promote local business. The cheap Chinese labor encouraged most US tech firms to outsource the manufacturing or assembly of their products to China and then import the finished goods to the United States.