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Saturday, October 27, 2018

Tariffs and Trade Wars with China, Why Not Do The Same to them?

A tariff is a tax levied on the import and exports of goods in international trade. The U.S. currently trades over $590 billion in goods with China every year. In 2015 China exported $466 billion worth of goods to the U.S. and imported $123 billion worth of U.S. goods. The 2015 China - U.S. trade imbalance of 344% is a new world record. During the 2016 Presidential race, Donald Trump proposed levying a 45% tariff on China and any other U.S. trade partner which violates trade deals through currency manipulation and illegal export subsidies. So I ask why not us do the same here, we can manipulate our dollar though lowing interest rates, instead of a trade war? Why cannot we make our products desirable to other countries? This is where government and business must work together to compete in a global economy, Tariffs and trade wars do not solve the problem. Most of America's low income brackets shop at Walmart, Target and Dollar Trees. Proponents of tariffs argue that China breaks trade rules by subsidizing its exports, manipulating its currency and stealing intellectual property from the U.S. and other western countries. Opponents argue that tariffs will cause a dramatic rise in the cost of goods, create inflation and raise interest rates. But again, it might destabilize China into a new revolution in breaking up communism, if things get bad in China. 

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