https://www.nytimes.com/2019/02/24/us/politics/us-china-trade-truce.html
There has not been an official agreement between China and the States as of yet, but Trump is delaying the tariff deadline. The meeting will take place elsewhere in the near future. The impact of the tariff would definitely affect many industries that require materials and manufactured goods, hence this could give some time for firms to be prepared for the price fluctuations.
However most are skeptical of the tariff being cancelled, because the agenda of China and the States are bound to clash. The communist party of China is fortifying their authorities by imposing policies that are very much socialistic. It is not only economic but towards the internet, foreign policies, etc. They have been undercutting the American workers and the restrictions towards foreign firms were strengthened recently. What Trump wants is to catch up to the Chinese economy, by adjusting the currency values. Hopefully the treatment becomes more equal towards foreign companies in China, but if Trump uses tariff as leverage, American imports and its consumers might get hurt. Also his black & white approach towards trade deficit may bring more loss than gains. Tariffs would help to tip the scale towards America, and hopefully the agreement is met with minimum amount of clashing ideas.
2 comments:
Delaying the tariff deadline does indeed lead us to believe that there is a deal coming. The possible cancellation that people are skeptical of, would lead to some pain felt by US consumers. US consumers would feel this tariff heavily as chinese made products are generally cheaper than domestically produced goods. It is funny though, because you hear people say we should buy US made products but their actions dont actually back up their words. In this way, it'll be extremely interesting to see the effect on the US consumer of this ongoing tariff issue.
The trade wars between the US and China has been interesting to follow. The outcome will undoubtedly impact the globe. You mentioned, however, what trump wants "is to catch up to the Chinese economy, by adjusting the currency values." I am curious as to what you mean here. The US economy, by accounts such as GDP and GDP per capita, is ahead of China. Moreover, the current exchange rate between the US dollar and the Chinese Yuan is 1 to 6.69, respectively. I will say though that China's GDP growth has been higher than the US, for what its worth.
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