On August 24, the United States announced that it would raise tariff rates on about $550 billion of Chinese imports to the United States, claiming that it would require American enterprises to leave China. The move triggered market turmoil and strong dissatisfaction from all walks of life in the United States.
This is a big mistake.
American business circles have sharply criticized the U.S. position, warning that the escalation of economic and trade frictions will damage U.S. enterprises and the broader economy, while claiming that requiring U.S. enterprises to leave China poses a new threat to U.S. multinationals.
As bankruptcies and delinquencies increase, people are increasingly disappointed.
Jeff Fischer, head of the Golden Planet Apparel Company, told reporters in this newspaper that it was absolutely a lie for the US to claim that the tariffs already imposed were paid by China. It is also a lie that tariffs encourage importers to produce in the United States, thereby creating jobs in the United States. Tariffs will not only have a negative impact on American consumers at higher prices, but may also have a devastating impact on workersemployment. Brett Cleveland, executive director of the Fashion Jewelry Trade Association, told our reporter that tariffs are a tax paid by American consumers. For decades, we have been working to develop our relationship with factories in China. It is not easy to replace these factories. Fashion jewelry industry is hard to absorb the cost of tariff increases. Goods shipped in September were purchased four to six months ago, but now they have to pay higher tariffs or cancel purchase orders, which will cause losses to importers and eventually pass the burden on to consumers.
For American farmers, the pain of economic and trade frictions is increasing every week, the American Agricultural Industry Organization Farmers for Free Trade said in a statement. Most of the agricultural areas feel the outlook is bleak and anger is spreading. As bankruptcies and defaults increase, people are becoming more and more disappointed.
Damage to domestic and global economic growth in the United States
Recently, the view that the United States may fall into recession because of protectionist policies and economic and trade frictions has been frequently seen in the major media in the United States. Many economists say that raising tariff rates on Chinese goods imported to the United States may raise the purchase prices of various goods, from mobile phones and video game consoles to clothing and shoes. Meanwhile, there are signs that U.S. economic growth is slowing, including declining corporate profits and job creation. Paul Ashworth, chief US economist at Kaishou Macro, argues that the additional tariff on Chinese imports of about $550 billion is equivalent to a tariff of about $27 billion on American consumers. The greater threat is that fears about when and whether economic and trade frictions will end have caused great panic.
A recent report from J.P. Morgan Chase argues that the U.S. tariff imposed on some Chinese imports since last year will cost American households an additional $600 a year on average. If tariffs continue to be imposed, the average additional burden on American households will increase to about $1,000 a year. CNN commented, The United States is playing with fire by raising tariffs on a range of consumer goods, including video game consoles, television and clothing. For small businesses, which account for half of the U.S. economy and labor force, trade frictions are undoubtedly a greater risk.
American importers and consumers are bearing the burden of tariffs. Gita Gopinat, chief economist of the International Monetary Fund, said recently, Tariff increases are unlikely to solve the overall trade imbalance in the United States. On the contrary, they may undermine corporate confidence and investment, disrupt global supply chains, increase costs for producers and consumers, and consequently damage the domestic and global economy of the United States. Economic growth.
Source: Liable Editor of Peoples Daily: Liu Song_NBJ9949