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Tensions grow in Ohio over the impact of a trade war

As China considers tariffs on more than 100 U.S. products, several Northeast Ohio businesses are feeling anxious about the future.

The Chinese have fired back at President Donald Trump’s proposed tariffs on their steel and aluminum by suggesting tariffs on more than 100 U.S. products, mostly in food and agriculture.

The ripple effect is surprising.

That is because with just 15 employees, places like Cleveland Whiskey could soon pay the price.

The distillery uses American ginseng in some of its products which are popular in China. With a new tariff on ginseng, however, that could make the whiskey too expensive for the Chinese to buy.

“It’s like ‘Whoa now wait a second,’” said Tom Lix, Cleveland Whiskey CEO, “If we buy this from you, by the time it gets to us, the price may be a lot higher because of the tariff. So, it’s stopped everything.”

From hog farms in North Carolina to soybean growers in Iowa, there is now a new fear on Main Street.

China also proposed tariffs on wine, fruits, and aviation parts, and it may just be the beginning.

“The glass that we get for our bottles, most of that is made here in the U.S.,” Lix said. “But China also imports glass into this country. Who knows if glass starts getting involved?”

The move comes just a few years after President Barack Obama toured the distillery and praised it, and just a few days after President Trump visited Northeast Ohio to talk about job growth.

Lix said the tariffs will not mean an end to him, but others may not be so lucky.

“It’s a problem,” he said.

Bloomberg reports Eaton Corp., once based in Cleveland, could see as much as a $50 million increase in raw material costs because of the tariffs.

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