2018-09-19 12:38:00 Wed ET
technology antitrust competition bilateral trade free trade fair trade trade agreement trade surplus trade deficit multilateralism neoliberalism world trade organization regulation public utility current account compliance
The Trump administration imposes 10% tariffs on $200 billion Chinese imports and expects to raise these tariffs to 25% additional duties toward the end of this year. These new tariffs arise on top of prior punitive duties that the Trump administration enacted earlier in mid-2018 on $50 billion Chinese goods and services. Now U.S. tariffs hit more than half of Chinese imports to America.
China can choose to retaliate against American tariffs in several ways. First, China may impose tit-for-tat tariffs on $60 billion U.S. imports. This retaliation, however, stretches limits on the narrow scope of bilateral Sino-American trade negotiations. Second, China has the open option to offload its ownership of U.S. Treasury bills and notes. Such foreign investments help finance the perennial U.S. budget deficit. If the Chinese government decides to engage in large-scale U.S. government bond sales, the likely yield curve inversion adversely affects American economic output and employment. Third, China produces low-cost products for the typical American household. U.S. tariffs may thus inadvertently boost the costs of both household consumption and firm production in America. Higher inflation induces the Federal Reserve to accelerate its hawkish interest rate hike. Overall, these concerns shed skeptical light on the Sino-U.S. trade war that the Trump administration uses as a tactical solution to relentless bilateral trade negotiations with China.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-05-11 10:28:00 Saturday ET
The Trump administration still expects to reach a Sino-U.S. trade agreement with a better mechanism for intellectual property protection and enforcement. Pr
2025-06-21 10:25:00 Saturday ET
Former New York Times science author and Harvard psychologist Daniel Goleman explains why emotional intelligence can serve as a more important critical succ
2019-11-05 07:41:00 Tuesday ET
The Trump administration expects to reach an interim partial trade deal with China. This interim partial trade deal represents the first phase of a comprehe
2019-03-03 10:39:00 Sunday ET
Tech companies seek to serve as quasi-financial intermediaries. Retail traders can list items for sale on eBay and then acquire these items economically on
2024-02-04 08:28:00 Sunday ET
Our proprietary alpha investment model outperforms most stock market indexes from 2017 to 2024. Our proprietary alpha investment model outperforms the ma
2019-12-30 11:28:00 Monday ET
AYA Analytica finbuzz podcast channel on YouTube December 2019 In this podcast, we discuss several topical issues as of December 2019: (1) The Trump adm