The ongoing trade war with China has not been easy to fix. It is as well, difficult to be able to tell what president Trump plans to do, and what he will do. According to the article, Mr. Trump said his plan was to take all American companies out of China, but looking from an economic perspective, this would not be the best idea. One of our biggest trade partners is China, and with the planned rising tariffs, the domestic prices of goods will increase significantly. On top of that, China is beginning to trade more with other countries in order to replace what we are costing them. This will have a negative downturn on the U.S. economy in the long run. As proven in economics before, trade allows us to reach a potential of efficiency and production much higher than we would on our own without trade. Trump shortly after his statement took it back by saying he only wishes he imposed even higher tariffs sooner. The article states "..American leverage in the trade war is weakened by the president's failure to work with allies in a concerted approach to change China's course." Going off of this, they are right by saying this has had a negative impact because this trade dispute has impacted U.S. allies like Germany.
It appears that president Trump keeps changing his mind and/or perspective on his decisions and his thinking. This has been shown through numerous Twitter posts he has had about what he may or may not do in order to end or win this trade war. With the confusion back-and-forth, it is difficult to tell what will happen in the future regarding this trade war with China. It will be interesting to see how this will also affect prices and other allies of the U.S. as well as China. What do you think the best step forward would be?
https://www.nytimes.com/2019/08/25/world/europe/trump-offers-contradictory-signals-on-china-trade-war.html
5 comments:
Personally, I think the best step forward would be to just get the trade war to end. I believe that whatever point Trump was trying to make in the first place has probably already been made. It has caused numerous problems that were not necessary in the first place, and has caused problems with countries that we have specified in the past to try and avoid having problems with(aka Allies). Again in my opinion, the trade war should be put to an end as abruptly as it was started.
In my opinion, I do not think stopping trade with China is a good idea. Like you said, it will hurt the U.S. economy if we get rid of all American companies in China. I think Trump needs to stick to one stance because China is going to get sick of dealing with the U.S. and go to another country like Germany if he keeps changing his opinion. China is a big part in the global economy and I don't think it would be smart if we take all U.S. companies out of their country.
I agree with the point that pulling American companies out of China would be an awful decision economically. I think it is safe to assume that this is a bluff from President Trump in an attempt to advance trade talks with China. This ongoing trade conflict has certainly put a noticeable dent in each countries economy and globally as well. The quicker a compromise can be made, certainly the better.
Personally, I believe that the best option for the United States would be to pursue a trade deal with China that benefits each economy and alleviates some of America’s concerns, such as intellectual property rights and the trade balance. The trade deal would also incentivize economic growth and investment and increase economic trade between the two states.
I do not believe pulling all American companies out of China would be a smart idea to carry out from President Trump. The trade war between the United States and China has taken a toll on both economies. Instead of an all or nothing plan of action like Trump is threatening, further negotiations would be a better choice. The quicker a compromise can be met, the better for both countries.
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