As a means of “punishment”, President Donald Trump intends on hitting China with
around $60 million in tariffs on imports. The nation’s largest retailers and big-box stores
are warning President Trump of the consequences of imposing such tariffs. Prices will
be raised, causing items such as everyday necessities to be more expensive which wouldn’t
leave customers very happy. This could possibly spark a trade war between China and the
United States, as China has mentioned that they are not afraid of stepping into such a situation.
Products could face duties of up to 25%, but they are willing to negotiate before starting a trade war.
Trump signed an order that is the “first of many” trade actions and could possibly result in restrictions
on Chinese investment in the US and also duties of up to 25%. If the US does not reach a negotiation
with China within a specified time frame, China has warned that they will impose a 15% tariff on
120 goods worth almost $1 billion. Their second move would be to impose a 25% tariff on 8 goods
around $2 billion. This was a direct response to the US’s steel and aluminum tariffs.
around $60 million in tariffs on imports. The nation’s largest retailers and big-box stores
are warning President Trump of the consequences of imposing such tariffs. Prices will
be raised, causing items such as everyday necessities to be more expensive which wouldn’t
leave customers very happy. This could possibly spark a trade war between China and the
United States, as China has mentioned that they are not afraid of stepping into such a situation.
Products could face duties of up to 25%, but they are willing to negotiate before starting a trade war.
Trump signed an order that is the “first of many” trade actions and could possibly result in restrictions
on Chinese investment in the US and also duties of up to 25%. If the US does not reach a negotiation
with China within a specified time frame, China has warned that they will impose a 15% tariff on
120 goods worth almost $1 billion. Their second move would be to impose a 25% tariff on 8 goods
around $2 billion. This was a direct response to the US’s steel and aluminum tariffs.
Discussion Questions:
How will this affect consumers in the US?
How will this affect relations between the US & China?
Do you believe that Trump will come to a negotiation with China or start a trade war? Why?
https://www.yahoo.com/news/think-twice-tariffs-president-trump-cheap-imports-keep-voters-afloat-090013393.html
This is currently a huge problem between the two countries, as it shows that any small issues could build up to become a massive dilemma. US-China relations are already very strained, and the risk of a trade war is very high. If Trump does engage in a trade war, then it will mean skyrocketing prices, and most of the public would be very unhappy, leading to country-wide dissent. I think (at least I hope) that Trump should be wise enough to not follow this route, and seek to figure out a proper way to manage the growing discord. After all, he is a businessman, and should be able to deal with problems such as these.
ReplyDeleteDue to the strained relations between the US and China, there is a great chance of a trade war if any slip from either president occurs. For the public, a trade war would result in expensive prices for items that were recently very cheap. The public will not be willing to pay so much extra for usually cheap items. Trump may not know the best interest for this country because he is signing orders that will likely cause turmoil. China will defend its own trade interests so if the US wants any part in a negotiation Trump needs to step up and compromise with China so we all do not end up in a trade war.
ReplyDeletehttp://www.bbc.com/news/world-asia-china-43525592
I do believe this will spark a trade war with China. Trump has already shown that he has no qualms with establishing tariffs against all advice (ex: the steel tariff that made the Dow plummet). His capricious nature makes it hard to predict how the meeting will go down, but based on his behavior when meeting with other figures of authority (specifically when he met with a board of Dems and Reps on DACA), he will either completely capitulate to China's terms or charge on bullheadedly. I put my bets on the latter, which would spark a trade war.
ReplyDeleteA trade war would only really affect the middle and lower classes in the short term, as it would raise the price of everyday necessities. A family just scraping by would have trouble keeping up. The upper class, though the raised prices associated with trade wars would put a dent in their investments and massive savings, would be find. HOWEVER, a trade war like this would likely be the catalyst for another economic depression, the likes of which usually come around every eight years. The last one was in 2008 with the housing market crash. We're overdue, and a trade war like this would likely tip our already delicate and bubbled economic system.
As for US-China relations, they will definitely deteriorate. Even if the trade war does not go through, Xi will remember that Trump attempted to put a tariff on Chinese goods.
I believe there is a very strong chance of a trade war between China and the US; Trump is very confident in his actions, despite all the warnings he received that this would be the wrong course of action. The US is practically based off consumption of goods, media, etc. The sudden increase in price of goods would almost certainly spark anger, especially in the lower/lower middle class, as they would have a harder time affording necessities. I think Trump needs to reconsider his decisions and take into account all the consequences before continuing on this path to destroy US relations with China.
ReplyDeleteI strongly agree with your comment as Trump's impulsive decision will have the greatest impact on the lower and middle classes, resulting in a lot of backlash and outrage.
DeleteI think this is a poor course of action, not necessarily because of a trade war, but also because China holds trillions of dollars of US debt. If the US decides to do things that China disagrees with, only a few pulled strings could sink the US economy overnight. The tariff decision must be put on hold while the national debt is sorted in order to avoid a diplomatic crisis where China tries to discourage US action by requesting all loans simultaneously.
ReplyDeleteJust like everyone else, I believe that this imposition of tariffs will eventually lead to a trade war between China and the US. This is because China and the US already have tensions between them and their relationship is very strained. So, a problem like this can only lead into a much bigger issue. China also wants to retaliate back by imposing tariffs on the US. China could push back on the US because they are one of the biggest buyers of US crops and China is also the biggest creditor of the US because it owns more US government bonds than any other country. Consumers will probably be unhappy with this issue because Americans buy a lot of Chinese goods and prices will most likely go up due to the tariffs. I think that Trump should come up with a negotiation that is fair and benefits both sides, but I don´t think that this will really happen because in a CNN article it says that, ¨Trump administration officials say fears of a trade war are overblown. And the tariffs are essentially delivering on a campaign promise: Trump told voters he would get tough on China, accusing it of stealing US jobs.¨ I think that Trump needs to act reasonably and think about the impact his decisions can make for the future. One question I have is will these tariffs kill or create more jobs for Americans?
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ReplyDeleteChina and the US have always been in the race for being the ultimate global power, whether it be through means of military power or dominance in global trade. It is essential to understand that Trump’s “America First” policy comes into major play regarding the United State’s foreign relations, especially with China. For the sake of boosting US economy, Trump is willing to make any reform. Yet, with other economic reforms that Trump has made, this will most likely boost the US economy temporarily rather in the long term. Therefore, the result will be inflation. In addition, the schism between the US and China will be even deeper, as countries will start supporting a certain nation over the other as this trade war persists. In terms of negotiations, Trump, being preoccupied with US policy, will be focusing on more reforms rather than alleviating tensions in Sino-US relations.
Similar to everyone else, I believe China and the US will have a trade war. The tensions between China and US have already been extremely tight, so a slight disruption could lead to a trade war. All the products China imports to the United States would probably be priced higher and low income families would struggle supporting their families. It is very controversial on why Trump even imposed tariffs towards China, because it affects the US as much as it does to China.
ReplyDeleteThis will affect consumers because some families might not be able to make ends meet and fulfill their idea of the American Dream. Thus, people will be discontent and even more angry at the government. If the US starts a trade war, not only will it destabilize the economy, but without the support of the public, people will have to suffer unfairly. Also, China would have the upper hand, as they export more to the US than the US does to China, so tariffs on their goods would greatly affect consumers in the US.
ReplyDeleteWhether Trump knows this or not, his tariffs actually impose many contradictions on what his administration has stood for since the beginning of his campaign and the main appeal they used to constituents: domestic economic growth. On a surface level, it seems as if the most logical way to promote growth for the American economy would be to raise taxes on products that are imported from a foreign country to provide an incentive to buy American-made products. But in actuality, so many American companies use overseas investments in their production that in the short-term, it would hurt the American economy. It also hurts consumers because overseas production is much cheaper than domestic production in the United States due to high working standards. Especially in situations like these, where China intends to retaliate with tariffs of their own. A huge export from the US to China is soybeans, and if there were a tariff imposed on this industry, it would be greatly affected and many farmers would be left in financial ruin. In the short-term, this doesn't promote economic growth at all. Not only does it hinder this growth, it also greatly increases tensions between the US and China, at a bad time considering the meetings with North Korea are supposedly soon.
ReplyDeleteThis will negatively affect consumers in the US, as China's 15% tariff would be costly for the average American family, who might already be struggling to maintain their finances. This will create an even greater divide between the US and China, and could lead to hostility. As it is, we do not have the friendliest relationship with China, and should be focused on fostering a healthy international relationship with them, not tearing it down. I believe that Trump is not wise enough to negotiate with Chinese leaders, and the likelihood of a trade war is very high. Trump either does not or fails to realize the important role China plays in the global economy, and this will be consequential to America as a whole.
ReplyDeleteUS consumers will be very unhappy to hear about this situation. Many people would not be able to afford an increase in price. Trump's sudden increase in prices will spark a trade war between China and the US because US (Trump) does not have a fear to start a trade war. US is already at a budget deficit and increasing the price will make China fund even more than it already has been. Currently China is already 10%. We Americans are based on consumption, therefore the increase in price will only anger the people.
ReplyDeleteA U.S. Consumer will likely will not be very happy about the prices rising up. The trade war between the U.S. and China will most likely affect the U.S. because it will be harming the economy. This is because there will be that a lot of consumers that use a product that China makes and sends to the U.S. If stores don't have or are seen as expensive, people won't be spending money which, will harm the businesses and the economy. I believe Trump will not come to a negotiate with China because he believes they make bad deals, and believes they are villains and if he keeps on commenting bad things about China. China will continue to get upset and choose not to export materials to the U.S. and will not buy treasury bills from the U.S. which help fund the U.S. dept.
ReplyDeleteI do not believe this will damage relations between the United States and China. Even though a possible trade war is clearly harmful towards both countries, both countries will most likely find a solution eventually, especially due to Trump's love of negotiation. Additionally, Trump has repeatedly attempted to maintain friendly relations with President Xi Jinping. He even congratulated him on removing the term limit and claimed he wanted the United States to follow suit, which is clearly an attempt to pander to President Xi. Since both parties involved are willing to negotiate and are extremely friendly towards each other, relations will most likely not be damaged since no significant actions will end up occurring if this issue is resolved.
ReplyDeleteA trade war between the US and China would severely hurt the US economy. Instead of imposing tariffs on each other, the US and China should negotiate in a more diplomatic way that wouldn't impact their economies as much. The US and China have a big influence on international affairs, and their cooperation is critical to addressing and resolving global issues. If a trade war occurs, countries around the globe that trade with the US and/or China would feel its effects.
ReplyDeleteIf prices on low cost items rise, many low income American families may struggle to purchase them. What used to be cheap will have a heftier price tag, making it more difficult for some families to afford even the smallest things. The rise in prices will definitely impact the American economy. I hope that Trump will find a way to negotiate with China rather than start a trade war, because U.S.-China relations are already tense enough. A trade war would likely not be the best way to reduce the tension between the two countries.
ReplyDeleteConsumers in the US will be upset if there is an increase in price. The consumers in China will also be upset if they have to pay more for things. This will affect consumers in the US more than consumers in China because people in the US consume more products from China than the Chinese do of US products. A trade war would not be good because it could cause poor people to not be able to buy the things they need. A trade war would affect both the US economy and China's economy negatively. I think Trump should and will negotiate to avoid a trade war because a trade war would be really bad for our economy. I think a trade war would negatively affect our relationship with China because it would create tension between the two countries.
ReplyDeleteThis isn’t a good move that President Trump is making. It will drive up the cost of simple mass produced items that could be a lot more expensive if made in the US or other places. This will affect relations with China too, considering they are one of our largest trade partners. Hundreds of thousands of products are made in China and implementing a tariff will just cause more harm than good. Yes, Trump is trying to bring back production to the US, but implementing tariffs on imports isn’t the way to go about it.
ReplyDeleteI don't think that Trump will actually take this far enough for it to develop into a war and he will end up with a negotiation. Trump uses a method of threatening countries hoping they will scare into acting the way he wants them to act but when it comes down to it, he won't follow through with his actions. Besides, he knows how important of a trade partner China is to us so I don't think he would risk that much of an economic and international loss.
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