Trump on US-China Trade War
Over recent years, President Trump has engaged in somewhat of a trade war with China. He feels that China has taken advantage of the U.S. economy for decades, taking what he claims to be, "a total loss of almost a trillion dollars a year for many years." To counter, Trump has began to raise tariff rates on Chinese goods in attempt to, as he claims, straighten out the biggest of multiple horrible trade deals set between the U.S. and their foreign counterparts.
What kind of effect can these tariffs have on the U.S. economy? And more specifically how could it affect growth of real and nominal GDP?
https://www.cnbc.com/2019/08/25/trump-on-us-china-trade-war-i-could-declare-a-national-emergency.html
If things work out the way President Trump wants them to then both real and nominal GDP should increase. But other countries could not want to do business with us moving forward due to a fear of an unnecessary tariff being slapped on the transaction. I don't think we will see the true affects of the tariffs until closer to the 2020 election where trump will either be able to use them to help himself or create an excuse as to how the democrats screwed up his plan some how.
ReplyDeleteI worry that because of these tariffs US Corporations will being to look for alternatives to China, however I don't see this going smoothly, and, therefore, I think we will see the stock market take a hit as a result.
ReplyDeleteUS trade war with China will affect small business owners who depend on Chinese goods to make income through retail. Also, US-based companies that are trading in china will face some consequences of this trade battle such as a decrease in sales, lower profits, etc. I think stock investors will have some loses in their investment as the stock market will drop tremendously.
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ReplyDeleteThese tariffs on Chinese manufactured goods will effect prices amongst many American consumed goods. The potential raise in tariffs on U.S. imports from China will in turn effect the cost of obtaining these goods by billions of dollars. For example, the cost of attaining telecommunication equipment will be affected by almost $20bn. In turn, products such as cellphones, computers, etc. will continue to raise in price and become more difficult for american consumers to purchase.
ReplyDeleteNothing wrong with doing business elsewhere. America is a powerhouse and people want to do business with us. This is exactly what we are trying to show China. We want to do business with them, but we don't have to do business with them.
DeleteIt seems that Vietnam has done a lot of promotion as a result of this "trade war." It has become that "elsewhere" that manufacturers are looking at to avoid the further taxation. Vietnamese industrial estates are pulling new tenants as a result, especially attracting small and medium-sized factories that make furniture, textiles and electronics in China’s Pearl River Delta and Yangtze River Delta regions, the main export production hubs of China. So it seems that Vietnam has reaped the benefits as the U.S.-China struggle continues.
DeleteIf U.S companies do decide to bring there business elsewhere, Im curious to see which countries would be willing to do business and the time frame it will take to transition.
ReplyDeletei feel like the way that this information is written is biased and speaking from the american perspective. I feel like if it was written from a Chinese perspective the information would be different.
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