US-China trade war could soon pose a serious economic threat
WASHINGTON Seeking better-skilled workers, Cedar Electronics decided last year to return some of its manufacturing to the United States from the Philippines, only to run smack into a worsening U.S.-China trade war.
Cedar makes radar and laser detection systems. When it shifted the assembly of those machines to Westchester, Ohio, it provided jobs for 30 people. Yet with President Donald Trump escalating his tariffs on Chinese imports, Cedar must now pay hefty taxes on critical imported parts tariffs it didn't have to pay when that manufacturing was done overseas.
"We're effectively being penalized for bringing back that product manufacturing from the Philippines to the U.S.," said Chris Cowger, the Chicago-based company's chief executive. "If we had known this time last year, we most likely would not have brought those jobs back."
On Monday, Trump intensified his trade war with China by announcing tariffs on an additional $200 billion of Chinese goods, including antennas and other electronic components that Cedar incorporates into dashboard cameras, CB radios and its detection systems. That followed tariffs on $50 billion in goods that Trump had already imposed on Beijing, which retaliated in kind.
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