IF you attended the economic outlook conference last night you understand we may be at a turning point in the economy. Ian Sheldon, who gave his outlook on the international economy, told us that we might as well be shooting ourselves in the foot with the tariffs we imposed on China as it is doing tremendous damage to our economy. I for one do not think we should be poking the economy with a workforce of over 1.4 billion people but should instead be actively negotiating with them. These tariffs could really come around to bite us in the butt especially if we are the only ones who experience an economic pullback in the coming years. I don't believe we will be the only ones because when the US hurts everyone hurts, but I do believe that China will have a bad taste in their mouths when it comes time to begin building our economy back up and that could be a trillion-dollar problem for us in the US.
What is your prediction on the outcome of this trade war?
At this point it doesn't seem that China is doing much to meet the demands of the President Trump (Regarding intellectual property protections and forced technology transfer.) I don't see Trump budging much on his tariff acts unless they do so but they have hurt our economy immensely. Business investment has fallen significantly and will continue to as this conflict persists. Both economies have suffered so hopefully they realize the sooner both parties configure a solution the sooner economies can begin recovering.
ReplyDeleteOur trade war with China has severely hurt business investment due to trade uncertainty and potentially higher taxes. Ian Sheldon expects the problem to worsen and prices of imports to raise exponentially. I believe this issue is somewhat political and Trump will come to an agreement with China around election time.
ReplyDeleteThe trade war has caused so many problems inside our economy as well as in the global economy. I agree that by continuing the trade war will only make it harder to fix it, especially when you think about how much business goes on between the two countries. The trade war will be the main discussion for a long time to come even after it does conclude..
ReplyDeleteAt the moment, it seems like the United States and China believe they are caught in a “zero-sum” game. This has created a situation where each country is unwilling to compromise on its core principals and beliefs. Due to these beliefs, neither side will want to negotiate a deal that could potentially favor the other side, so China and the United States will have to negotiate a deal that is mutually beneficial to both countries.
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