Like cheaper electronics? This article is an opinion piece from the NY Times.
Tariff: a tax on certain imported and/or exported goods.
A Smart Deal to Cut Tariffs on Tech Products
More than 50 countries agreed on Friday to eliminate tariffs on a wide range of technology goods like medical devices, navigation equipment and advanced semiconductors in a trade agreement that should benefit American manufacturers, consumers and the global economy.
Signatories to the Information Technology Agreement, which covers 201 product categories, include the United States, the European Union, China, South Korea and other members of the World Trade Organization. International trade in those goods totals about $1.3 trillion a year, or about 7 percent of all trade.
Negotiators say this agreement is the most significant deal struck at the W.T.O. in almost two decades. Completion of the much more substantial agreement known as the Doha Round, which began in 2001 and includes all 161 W.T.O. members, has been delayed by disagreements between countries like the United States and India.
Given the slow progress on the Doha Round, some countries have sought to reduce trade barriers through bilateral, regional and sector-specific trade deals. Under sector-specific deals, countries agree to eliminate tariffs on a list of goods. Some W.T.O. members, including the United States, are negotiating a similar deal on environmental goods like solar panels.
Sector-specific deals tend to benefit the whole world even though they are not signed by the entire W.T.O. membership because signatories agree to charge no tariffs on the listed products even if they are exported by nonsignatories. By contrast, the benefits of bilateral or regional pacts are reserved for countries that are party to them.
Sector-specific deals are focused on eliminating tariffs and do not cover contentious issues like labor, intellectual property and environmental standards. Those issues are big components of the regional trade pacts that the United States is currently negotiating — the Trans-Pacific Partnership, which includes 12 Pacific Rim nations, and the Transatlantic Trade and Investment Partnership with the European Union — which is why they take years to negotiate and can face significant opposition.
The tech trade deal will require markets like China and the European Union to eliminate tariffs, which are as high as 35 percent on some goods, between 2016 and 2019. With the United States exporting about $100 billion a year in products covered by the pact, businesses and workers could see big benefits if lower costs to foreign consumers create higher demand for American products.
China has really high tariffs obviously to protect their domestic businesses. China is also in-demand because they can provide cheap labor for the other countries mentioned in the article. It’s great to buy the electronics that you want/like for less cost, however, I wonder how much tariffs make up the nations mentioned’s budgets because of this cut in income.
These little plastic and metal things are in a lot of goods, like cars. I saw a short video recently where it was possible for people to hack cars and you know what bad things can happen with hacked cars. [Side thought: Russians are such terrible drivers that so many accidents occur each day. In addition, almost all cars there have cameras to capture those accidents to prove one side didn’t cause the accident, to get the license plate, and the other driver(s). Go on youtube and find some]. A lot of cars are sold and plenty of other tech toys, so a lot of money will not be floating around.