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I think the US will find that national economic responses from other nations will drive the response. The US may consume large amounts of the world's resources
by rswail 7y ago
I think the US will find that national economic responses from other nations will drive the response.
The US may consume large amounts of the world's resources, but there are ample markets outside the US. These markets are growing rapidly and are open to Chinese investment.
Tariffs on specific countries is a mercantilist, short sighted, zero sum policy. It is not backed by any reality, other than the effect of the Smoot-Hawley act in the 1930s.
Tariffs on specific products to protect local industry, or subsidies to local industry have some economic sense in some circumstances, particularly as an aid to transition that industry.
But Trump's manner and mechanism of trade policy has achieved very little other than froth. The USMCA is a rewarmed NAFTA, trade policy with the EU is stagnant, the US has withdrawn from APAC in terms of economic engagement.
The world is moving on. The Emperor is naked.