Trump slaps new duties on China and Vietnamese packing products

Donald Trump just slapped some rather significant duties on two countries that will impact just about everyone in this country.

Trump is targeting cheap food containers from China and Vietnam that many restaurants in this country use for their to-go containers.

The new duties range from 260% to 540%.

Tariffs Will Buoy the Economy

When Trump took office, and I saw his tariff plan, I warned everyone that this was going to be a long process in terms of making pricing more affordable.

First, Trump was going to use tariffs as leverage for better trade deals.

Second, Trump was going to use them to ignite domestic manufacturing, but it could be years before that aspect of his plan pays off, as factories are not built overnight.

Trump stood by his plan, though, claiming “jobs and factories will come roaring back into our country.”

Economic Growth

When reports came in this month, they were better than expected, and Trump claims that his tariffs get all the credit.

He stated, “The TARIFFS are responsible for the GREAT USA Economic Numbers JUST ANNOUNCED…AND THEY WILL ONLY GET BETTER! Also, NO INFLATION & GREAT NATIONAL SECURITY. Pray for the U.S. Supreme Court!!!”

There was inflation, but it was far less than the experts had predicted, which was really good news for Trump.

But there is a concern, that being what happens when all the pre-tariff products run out and the products with tariff charges start to hit the shelves of stores, and we are getting close to that point.

Tax Them

Restaurants are already facing some major challenges, especially with the rising cost of beef, but now we could see an impact on pricing due to massive penalties being attached to disposable food containers.

Yohai Baisburd of Cassidy Levy Kent, counsel to the American Molded Fiber Coalition, celebrated the new duties against foreign suppliers, stating, "America continues to thrive when fair competition occurs. The Trump Administration is using every tool in the toolbox to enforce U.S. trade laws and cheaters beware because they are coming after you."

He later added, "U.S. workers/companies can compete against anyone, anywhere. What they can’t do is outcompete Chinese and Vietnamese government subsidies that violate U.S. trade laws. The duties allow U.S. manufacturers to reinvest in their workers, operations, technology, because they can now compete on a level playing field.”

It will level the playing field, and it will help American companies, which I am all for. My concern here is how it will impact restaurants and their “to-go” business once those higher prices are incorporated into the menu pricing (which will more likely be an additional fee for to-go orders to help pay for the more expensive containers). The pricing will get passed on to consumers because restaurant margins are very tight, so the jury is out, as we have to wait to see just how much this impacts businesses and consumers.