NEW YORK (CNNMoney) -- Senate Democrats renewed their push to crack down on countries that manipulate their currencies, ahead of a key meeting between Chinese President Hu Jintao and U.S. President Barack Obama in Washington.
A bill introduced Monday by Senator Charles Schumer and two other Democrats, would impose penalties, including possible tariffs, on nations that manipulate their currencies -- particularly China...
What would be the implications/consequences of the economies between the United States and China if the United States were able to enact tariffs in response to China's manipulation of its currency? Would that benefit us or hurt us in short term as well as long term?
3 comments:
i think that it would be bad to impose tariffs on Chinese goods because first of all it will increase the price that we the consumers will have to pay for those goods and it could upset the chinese government to a point where they could retaliate with some sort of trade restriction against the U.S.
Chinese government artificially undervalues its currency in order to bring down the cost of Chinese exports. The problem with this is, it gives an unfair advantage in the international market, and other countries can't compete with Chinese price. However, on the other hand, the low-price products from China increase our standard of living at a large degree. without cheap price goods, we are more likely to spend more money on daily products, and as a result, we won't be happy living without "Made in China".
The biggest issue here is that the value of China's currency is totally BOGUS! If China were to wake up and smell the coffee, so to speak, let their currency drop and rise in value naturally, it would hurt the US and China temporarily. This being said, some other nation will take China's place as the cheap labor producer of goods and services, and China can take on an importing strategy, more like the US.
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