Source: nationalinterest.org - Monday, August 26, 2019
Salvatore Babones Economics, Asia It might be time to squeeze instead of accommodate. All of these trends are in America’s national interest. And Trump’s trade war benefits America’s allies, too. President Donald Trump is threatening another round of China tariffs, this time 10 percent on the remaining $300 billion in Chinese goods that are not yet subject to punitive tariffs. The new tariffs should go into effect on September 1, barring a change of heart on the part of the president or some real action on the part of the Chinese. Trump’s aggressive push on tariffs has thrown the country’s expert class into a tizzy, with pundits predicting a severe shock to the American economy, blaming the trade war for every blip in stock prices, and warning of the potential for runaway inflation as consumers pay the price for Trump’s tariffs. Meanwhile the economy is employing record numbers of people, inflation is running well below the Fed’s target rate, and stock markets are slightly up since the beginning of the “trade war” in April. The data simply refuses to satisfy the pundits’ appetite for economic carnage. (This first appeared in early August 2019.) With the economy refusing to cooperate with their “gloom and doom” narrative, America’s pundits are now arguing that economic pressure is no way to get a trade deal from China. When a Chinese Communist Party newspaper tells them that “China will never give in to pressure,” they believe it
Source: Breaking News
Salvatore Babones Economics, Asia It might be time to squeeze instead of accommodate. All of these trends are in America’s national interest. And Trump’s trade war benefits America’s allies, too. President Donald Trump is threatening another round of China tariffs, this time 10 percent on the remaining $300 billion in Chinese goods that are not yet subject to punitive tariffs. The new tariffs should go into effect on September 1, barring a change of heart on the part of the president or some real action on the part of the Chinese. Trump’s aggressive push on tariffs has thrown the country’s expert class into a tizzy, with pundits predicting a severe shock to the American economy, blaming the trade war for every blip in stock prices, and warning of the potential for runaway inflation as consumers pay the price for Trump’s tariffs. Meanwhile the economy is employing record numbers of people, inflation is running well below the Fed’s target rate, and stock markets are slightly up since the beginning of the “trade war” in April. The data simply refuses to satisfy the pundits’ appetite for economic carnage. (This first appeared in early August 2019.) With the economy refusing to cooperate with their “gloom and doom” narrative, America’s pundits are now arguing that economic pressure is no way to get a trade deal from China. When a Chinese Communist Party newspaper tells them that “China will never give in to pressure,” they believe it
Source: Breaking News
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