A simple matter of trade posturing or a full-blown trade war? How ever you try to spin it, the tit-for-tit retaliation isn’t working, and all of the parties involved are shooting more holes in the sinking boat.
The latest comments from the administration may be the worst of all.
Last week, The Wall Street Journal reported that Treasury Secretary Steven Mnuchin suggested that the U.S. government could eventually impose tariffs on all $505 billion worth of Chinese goods that enter the U.S. He thinks the country could get away with it because the national economy has yet to be harmed by trade spats (tell that to domestic agriculture!).
Yikes.
President Donald Trump doubled down the remarks, telling CNBC that he is prepared to “go to 500.”
“I’m not doing this for politics, I’m doing this to do the right thing for our country. We have been ripped off by China for a long time.”
Trump told G7 leaders earlier this month that all nations should eliminate trade barriers. That’s a good idea. Why not adopt that approach and ditch the tariffs?
Import restrictions and levies will only impact the economy and consumers.
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