Re:China announces 25% tariffs on $16B worth US goods
by friedman23 on Wednesday August 08, 2018 @12:15PM
(#17717141)
>1) Given the current balance of trade between the US and China, each $1 of retaliatory Chinese tariffs has a larger impact as a percentage of trade flow than each $1 of US tariffs.
That doesn't benefit China. What you are saying is that China has less total trade that they can tariff than the US.
>2) The Chinese economy is much more nimble and diverse than the US, and – especially with government intervention – may have an easier time developing domestic alternatives to US goods.
Source? It's common knowledge that the US has the most largest and most diverse economy in the world.
Re:China announces 25% tariffs on $16B worth US goods
by fisherjeff on Wednesday August 08, 2018 @12:53PM
(#17717417)
On (1), I mean that $16B worth of goods is 12% of US->China exports, whereas it is only 3% of China->US exports, meaning that if this continues to escalate in this manner it will disproportionately affect US->China exporters.
I will concede (2) was not well expressed. I just find it much much easier to imagine – due to differences in labor forces, natural resources, environmental regulations, etc. – a suddenly growing Chinese motorcycle industry than, say, a resurgent US steel industry.
1) Given the current balance of trade between the US and China, each $1 of retaliatory Chinese tariffs has a larger impact as a percentage of trade flow than each $1 of US tariffs.
2) The Chinese economy is much more nimble and diverse than the US, and – especially with government intervention – may have an easier time developing domestic alternatives to US goods.
On an unrelated note, it's interesting that they're implementing a tariff on recyclables. That could be a devastating blow to the already struggling US recycling market.