Tariffs from the trade war have clearly caused disruption and higher prices for American importers. Meanwhile Chinese exporters have lost customers
the start of trade skirmishes between America and China, America’s economy—and the world’s—seem to be holding up. Are trade wars, as President Donald Trump believes, not so costly after all?
The immediate impact was always going to be hard to spot. Though special tariffs now cover more than half of China’s exports to America, those exports account for less than 2% of American personal consumption and only around 5% of American business investment. Surveys suggest that tariffs are suppressing investment in America, but how much is unclear.As with all taxes, much of the effect is to shuffle costs and resources around.
Lower underlying prices might have helped. But where trade has continued, American firms seem to have gone on paying full whack, in addition to the new levies. Their Chinese suppliers’ margins have been spared. Importers may not have had time to renegotiate contracts, or they may have expected the tariffs to be temporary. In time contracts could adjust, or American firms could find alternative suppliers, further mitigating the economic fallout.
So far, then, tariffs on China seem to have disrupted business and geopolitics more than they have harmed the economy at large. But further escalation would bring rising costs. Mr Trump’s threats are for a tariff of 10% on $200bn of Chinese imports to rise to 25% on May 10th, and for a 25% tariff on a further $325bn-worth “shortly” thereafter. American businesses would find the former tough to handle, and consumers would struggle to escape the latter.
Faced with such harms, policymakers would feel pressure to act. If faltering American growth threatened to increase unemployment or push already-low inflation down further, the Federal Reserve could ease monetary policy. The Trump administration has already given billions of dollars in aid to farmers affected by China’s retaliatory tariffs; it could hand out more. And China’s government, which has already raised spending and cut taxes, could increase its stimulus.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Donald Trump’s trade war hots upAmerica ratchets up the pressure in its trade war with China
Weiterlesen »
Donald Trump’s trade war hots upAs the trade war intensifies, China tries to avoid a full-on fight
Weiterlesen »
Global markets plunge on Donald Trump's shock tariff threat as the US-China trade war escalatesFutures on major US indexes tumbled with shares in Asia and Europe, while Oil dropped after Donald Trump threatened to escalate trade war with China.
Weiterlesen »
Farmers are 'losing their patience' with Donald Trump over China trade deal, GOP senator saysPresident Donald Trump is escalating his trade war with China and introducing further tariffs, but under-pressure farmers are voicing concerns, Republican Senators have said.
Weiterlesen »
Senate Intelligence Committee subpoenas Donald Trump Jr. over Trump Tower Moscow testimonyThe Republican-led Senate Intelligence Committee has subpoenaed President Donald Trump's eldest son, Donald Trump Jr., to answer questions about his claim to have just limited knowledge of an ultimately aborted plan to build a Trump Tower in Moscow.
Weiterlesen »
Melania Trump praises Twitter, Facebook as 'true partners' as Donald Trump Jr. slams their 'political discrimination'“Your work is saving lives and helping children,' Melania Trump said of Twitter, Facebook, Google and other organizations.
Weiterlesen »
Donald Trump’s Pardon of former soldier raises questions about other pending war crime cases“It’s a complete disregard for the judgment of those leaders who were put there to hear all the evidence and decided whether somebody was a murderer or not,” said a lawyer who specializes in U.S. military cases.
Weiterlesen »
Decision to subpoena Donald Trump Jr. sets off a Republican firefightSenators took sides on the propriety of a demand that the president’s eldest son testify again in the Intelligence Committee’s Russia probe.
Weiterlesen »
This is Donald Trump's America'As Trump prepares to run for a second term, he will lean harder and harder into this disgruntlement and alienation among white Republicans. And, if Pew is to be believed, his message will find fertile soil,' writes CillizzaCNN
Weiterlesen »