From the U.S. standpoint of this trade-war against China, if
China does not come to terms with negotiating, the US government will raise
tariffs on imports 10% to 25% on China.
This would impact China negatively due to the fact that it would raise
prices for China consumers. Many spectators
of this trade-war believe, on each side of the spectrum, that the war isn’t about
just trade but about economic and technology dominance as these two countries
are torn by pride. From China’s
standpoint they are creating higher tariffs on imports of US companies; Apple
and Dell, which in turn would create higher prices for consumers in the
US. Basically, this trade-war, is for supremacy
and is hindering each other’s economy while they could be advocating their own
and others countries’ economies by stopping this trade-war through creating a
partnership.
As you state, pride is a huge factor in this trade war. Neither country wants to look weak and give in to the other. It is unfortunate because that will continue to increase prices for consumers in both countries. Do you think the American public would be okay if their pride took a hit in order for prices to decrease? I sure think they'd be okay with that.
ReplyDeleteThis is an interesting take on the trade war Tim. To look at it from China's point of view is especially interesting. I think a lot of U.S. citizens focus solely on the impact this trade war has on them. Would the tariff's rising negatively impact's China's welfare though? That is something I would look a little further into.
ReplyDeleteI agree with the your points that this trade war is taking place because of stubbornness and pride. The countries are just putting tariffs on each other until a solution is eventually sorted. These tariffs are not benefiting each other greatly and they are very much out of retaliation. The sooner a deal is in place, the better, as the countries are forcing each other and the world into an economic slowdown.
ReplyDelete