Trump’s ac­tions may not have a happy end­ing

China Daily (Latin America Weekly) - - Views -

The war of words be­tween the United States and China has es­ca­lated rapidly over the last few days. On Thurs­day, US Pres­i­dent Don­ald Trump upped the ante in the trade bat­tle with China, sug­gest­ing fur­ther tar­iffs on $100 bil­lion of im­ported goods from China, on top of the $50 bil­lion an­nounced on Tues­day.

Cu­mu­la­tively, the $150 bil­lion of threat­ened US tar­iffs rep­re­sent 30 per­cent of to­tal im­ports from China and roughly 5 per­cent of to­tal US im­ports. And the $50 bil­lion of threat­ened Chi­nese tar­iffs rep­re­sent nearly 40 per­cent of to­tal Chi­nese im­ports from the US.

If China re­sponds to these $150 bil­lion of threat­ened US tar­iffs in kind, the cu­mu­la­tive loss of GDP in 2018-19 could reach 0.3 per­cent in each econ­omy with the US po­ten­tially loos­ing more than 300,000 jobs. Im­por­tantly though, these threat­ened tar­iffs will be sub­ject to ne­go­ti­a­tion, and there­fore shouldn’t be con­sid­ered as fi­nal.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.