United States (US) President Donald Trump has levied increased tariffs on Chinese imports amid ongoing negotiations between the world's two largest economies to find middle ground on trade disagreements.
At 12:01 a.m. this morning, the US upped tariffs from 10% to 25% on some $200 billion worth of Chinese products. This increase represents a 15% increase over what Trump levied on another $200 billion worth of Chinese imports last year. China in that time also taxed some $110 billion on US imports. And as Chinese trade negotiators continue to meet with US representatives here in Washington, DC, today, the Trump administration has already signaled that steps have begun to slap another 25% tariff on a further $325 billion of Chinese imports.
China, not being specific, has threatened to respond in kind to this new increase in tariffs.
Factually, as the reality of economics will prove, the eventual victims of increases in tariffs will be consumers on both disputed sides. As US importers of Chinese goods are forced to pay this 25% tariff, ultimately, all those costs will be funneled to consumers, who inevitably will end up paying more for products. Similarly, in China, there will be the same trickle down of costs onto Chinese consumers.
Chinese imports into the US totaled $539 billion in 2018. American imports into China totaled $120 billion. Such robust trade sustains many jobs as it sparks global economic growth. To tinkle and to prolong a trade war between the world's two largest economies will adversely effect international economic well being.
Therefore, it remains in the best interest of the US and the People's Republic of China to find common ground on some type of trade agreement. The notion that one side of the negotiations is in a better position than the other is preposterous. There will be no nation winner - just hundreds of thousands of consuming losers.