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.
2018-11-23 09:39:00 Friday ET
Former White House chief economic advisor Gary Cohn points out that there is no instant cure for the Sino-U.S. trade dilemma. After the U.S. midterm electio
2018-06-29 11:41:00 Friday ET
Amazon acquires an Internet pharmacy PillPack in order to better compete with Walgreens Boots Alliance, CVS Health, Rite Aid, and many other drug distributo
2019-05-01 09:27:00 Wednesday ET
Apple settles its 2-year intellectual property lawsuit with Qualcomm by agreeing to a multi-year patent license with royalty payments to the microchip maker
2019-03-17 14:35:00 Sunday ET
U.S. trade rep Robert Lighthizer proposes America to require regular touchpoints to ensure Sino-U.S. trade deal enforcement. America has to maintain the thr
2019-02-09 08:33:00 Saturday ET
Apple provides positive forward guidance on both revenue and profit forecasts for iPhones, iPads, and MacBooks. In the Christmas 2018 festive season, MacBoo
2019-12-28 09:36:00 Saturday ET
Global debt surges to $250 trillion in the fiscal year 2019. The International Institute of Finance analytic report shows that both China and the U.S. accou