Effect of Tariffs on U.S. and Chinese Economies

Veronique de Rugy, Mercatus Center, and Beth Baltzan, American Phoenix, were on CNBC to discuss the impact that the recent trade tariffs are likely to have on the U.S. and Chinese economies in the future.

Notable points discussed:

  • U.S. President Donald Trump has essentially adopted a Democratic platform regarding trade
  • The recent move by Europeans to waive tariff on cars signals that comments by President Trump could be carrying some weight
  • There’s no space for president to punish U.S. consumers with tariffs in order to force moves from China–protectionism is never a good idea
  • Chinese consumer is ultimately the biggest loser if commodities, such as steel is subsidized by the government
  • China would be one of the biggest beneficiaries of the Trans-Pacific Partnership–it was essentially a back door for China

Related: U.S. Bond Payments Exceed Other Developed Nations

To watch the full interview, click below:

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