How potential trade war with China could affect us locally - Spokane, North Idaho News & Weather KHQ.com

How potential trade war with China could affect us locally

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SPOKANE, Wash. -

Everything from cherries to wine and trash can be impacted by the potential trade war between the United States and China.

China is the top export market for cherries grown in Washington State. Last year they brought in over 33,000 tons of premium cherries. Now those cherries have a 15% tariff on them. Included in large cherry exports are 50 million dollars in Washington state apples and 1.2 million dollars in wine.

For Americans, that means apple and cherry prices could fall. Washington growers may decide to sell more apples in the United States instead of shipping them to China. But long term it might put growers out of business - which would have a lasting impact on Washington's overall economy.

The cost of a flat screen television could also be impacted. Many TV's and their components are made in China. The reason is that labor is cheaper than in the United States. In today's market, an average TV screen sells anywhere between $600 and over $1,000. For example, component parts are 25% more expensive because the tariff raises the cost of the import and at the high end it could push prices well past $2,000.

But back home right here in Spokane, Waste Management is raising the price of collection by 56 cents. While that might sound like pocket change, it quickly adds up.

In a letter to customers, Waste Management says "because of uncontrollable market conditions,"  and they claim in the letter that the cost to process the recyclables has risen rapidly. This announcement comes after China announced a ban on many recycled materials and unachievable quality requirements.

They say that this is a temporary surcharge and will only last 90 days but it depends on the changes in the volatile markets. The surcharge would go into effect starting May 1st, 2018 and could be renewed after each 90 day period and it could be higher or lower.

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