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.
2017-03-15 08:46:00 Wednesday ET
The heuristic rule of *accumulative advantage* suggests that a small fraction of the population enjoys a large proportion of both capital and wealth creatio
2017-09-19 05:34:00 Tuesday ET
Facebook, Twitter, and Google executives head before the Senate Judiciary Committee to explain the scope of Russian interference in the U.S. presidential el
2019-02-03 13:39:00 Sunday ET
It can be practical for the U.S. to impose the 2% wealth tax on the rich. Democratic Senator Elizabeth Warren proposes a 2% wealth tax on the richest Americ
2019-03-29 12:28:00 Friday ET
Federal Reserve Chair Jerome Powell answers CBS News 60 Minutes questions about the recent U.S. economic outlook and interest rate cycle. Powell views the c
2018-04-20 10:38:00 Friday ET
Allianz chairman Mohamed El-Erian bolsters a new American economic paradigm in lieu of the Washington consensus. The latter dominates the old school of thou
2017-10-21 08:45:00 Saturday ET
Netflix stares at higher content costs as Disney and Fox hold merger talks. Disney has held talks to acquire most of 21st Century Fox's business equity.