With almost a year left to the next presidential election, many economic practitioners have been focusing on the trade war between the United States America and China. The impact of the trade war in America is enormous, and all a person can think of is what changes the next administration will bring to end the trade war.
The trade war, which involves the imposing of rigorous tariffs, has severely affected the natural stone market. If one intends to install a natural stone countertop for either their bathroom or kitchen, there is a need for them to follow the events of the trade war, and learn its effects on the prices. As a homeowner, one has to be aware of the changes in costs; this way, they will work with the right budget estimate.
First of all, one needs to understand why the natural stone market in China is very crucial for American homeowners and the benefits it offers.
Importance of China to American Natural Stone Market
China plays an influential role in the supply of natural stones. Even though America possesses an enormous amount of natural stones from marble to soapstone, they still need the Chinese market for the following reasons.
To begin with, China does not have strict environmental laws regarding the mining of natural stones. It gives Chinese companies the freedom to extract their fill of natural stones from the earth. This is different in America; where there are firm rules and regulations regarding the mining of natural stones. From restricting companies from accessing natural stone productive areas to giving them a targeted amount of natural stones they can extract.
China also boasts of a large natural stone reserve. This is essential for homeowners and home renovation companies as they provide them with natural stones to deal with the rise in demand in America. The booming American economy has put money into ordinary people’s pocket. With their new-found wealth, most homeowners have opted to renovate to their homes; hence the rise in demand for natural stones.
Lastly, China has enough unused land for obtaining natural stones. This way, it helps satisfy the growing demand in America. Unless there are extreme changes in the economy, China is the best bet for dealing with the expanding market of natural stones.
Summary of Trade War Between the United States and China
Early 2019, the American government declared intentions to exact a series of charges on more than $200 million of goods from China. This was believed to be in response to the Chinese government subsidizing the production of goods serving almost 6,000 product sections. The United States government tariffs affect a wide range of products, which include all-natural stones. Granite received one of the highest tariffs, with many home renovation experts wondering how much it was going to cost to conduct a home renovation.
What to Expect
The fact that the trade war between the United States and China started politically, politics will determine the direction it takes. Recent developments indicate that the American government wants the tariffs to take effect no later than the fall of 2019. The government is also considering adding more products to the already long list of goods. This will, in turn, affect natural stone alternatives such as laminates making home enhancements even more expensive.
Effects of The Trade War on Natural Stone Prices
A slab of natural stone currently goes for an average price of between $25 to $1,200 per square foot. The trade war has led to a rise in the price of natural stones.
Granite is one of the most popular natural stones. Because of this, the trade war has affected the granite price immensely. Granite countertops go for about $35 per square foot when installed. However, the price rises to exceed $100 per square foot for rare versions of the stone. With the trade war still on the resurgence, the value of granite is expected to rise to $200 by the year 2020. The rate at which it rises depends on the results of the trade negotiations between China and the United States.
Quartz is another of the natural stones that the trade war between China and the United States will affect. The magnificent natural stone has an already high price of between $60 to $100 per square foot and with the trade war still on the price is likely to be unreasonable soon. If this is the case, then there will be a reduction in the usage of quartz countertops.
With its price currently being between $70 and $200 per square foot, Limestone cannot bear to get more expensive. This is what will likely happen with the resurgence of the trade war. It will probably bring to an end the usage of limestone countertops, which will be an immense setback to homeowners and home renovation companies.
Marble is another common high-end natural stone that could be affected by the trade war. The price exceeds $100 per square foot, which means one will likely spend between $1,500 to $3,000 to install a new countertop in their kitchen. Overall the price of natural stones is likely rise-so it would be advisable for one to renovate their home as soon as possible before the prices become unbearable.
Final Thoughts
There is a reason why most economic enthusiasts have lately been focusing on the trade war between the United States and China. It has an immense impact on the economy more so to the prices of commodities. An excellent example is an increment in the cost of natural stones, which has made it expensive for homeowners to improve their homes.
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Nikki Kingsley is a writer and an editor. She is from Bergen County in New Jersey and she graduated from Montclair State University in 2014 with a Bachelor’s degree in Business Administration. She enjoys writing about architecture, home decor, home remodeling and do-it-yourself projects. She has a passion for environmental preservation and animal rights. In her spare time, she likes to read fiction and relax with her two dogs, Lucy and Ricky.
