Trade War Continues, and Does Anyone Would Benefit From It?

On April 12, President Trump said that the U.S. would consider rejoining the Tr a n s – P a c i f i c P a r t n e r s h i p (TPP).  According to the New York Times, “many economists say the best way to combat a rising China and pressure it to open its market is through multilateral trade deals like the Trans-Pacific Partnership, which create favorable trading terms for participants.” The U.S. rejoining the pact is expected to allow farmers to take advantages from new access to markets, especially Japan, and improve the situation of the agricultural industry that is hurt from China’s retaliation in reaction to President Trump’s latest tariffs.

Trump’s administration proposed $150 billion in tariffs on other imports from China after it imposed tariffs of 25% on steel and 10% on aluminum. The New York Times states, “China has responded to Mr. Trump’s threat of tariffs on as much as $150 billion worth of its goods by placing its own tariffs on American pork, and threatening taxes on soybeans, sorghum, corn, and beef.” China is now taking a reciprocal action against the U.S. government, and it would badly hurt the U.S.’ agricultural industry. In addition, China claimed that they could further retaliate with tariffs on American car, chemicals, and other products.

President Trump insisted that the U.S. is not in the trade war with China, but the U.S. government’s recent tariff policy is not consistent with his claim. Peter Navarro, the director of Mr. Trump’s Office of Trade and Manufacturing Policy said:

“What we have here is a situation where every American understands that China is stealing our intellectual property, they’re forcing the transfer of our technology when companies go to China, and by doing that, they steal jobs from America, they steal factories from America, and we run an unprecedented $370-billion-a-year trade deficit in goods.”

This idea supports President Trump’s tariffs plan and reflects that the U.S. would not stop till they achieve what they want, even though many industries in the U.S. including the agricultural industry could be hurt from it. As China claimed that they would not hesitate to immediately make a fierce counter strike, it raises more concern that the situation would last longer and harm the economy of both countries.

DaEun Kim/ Tax Advisors for
Champaign Society (TACS)
Summary
Trade War Continues, and Does Anyone Would Benefit From It?
Article Name
Trade War Continues, and Does Anyone Would Benefit From It?
Description
On April 12, President Trump said that the U.S. would consider rejoining the Tr a n s - P a c i f i c P a r t n e r s h i p (TPP).
Author
Publisher Name
ACT
Publisher Logo