This article raises the concern that American economy would suffer due to Donald Trump's decision imposing tariffs on China. Both the countries are heavily dependent on trade for economic growth and benefit. Restricting trade would be a huge blow to the US economy as China invested around 600 billions dollars in the US economy last year. Moreover, this can also harm the political reputation of the US in the world while China would benefit politically.
The article suggests that the best solution would be promoting export and foreign investments but Trump is willing to take the negative impact on the economy to prevent the theft of intellectual properties of American companies.
https://www.cnbc.com/2018/04/05/american-chamber-of-commerce-in-china-warns-on-impact-of-tariffs.html
2 comments:
It would be interesting to see the impact of imposing tariffs on the US economy since it is heavily dependent on trade. The political reputation of the US might also be affected globally, and this in turn might affect the long term economic growth.
This trade war that Trump seems to have started by imposing tariffs on steel and aluminum is far from being over. China has already started to think how to respond, and Trump keeps sending accusations to Chinese firms and the Chinese government saying that they are affecting the US economy. This trade war will probably end up hurting both economies, but it seems like political power is more important for Trump. The fact that he is keeping the jobs of many people by not closing factories like steel and aluminum factories, should bring him a lot of voters, but is that really the best for the country?
We will see what happens with this trade war and how the economy gets affected.
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