Thursday, July 5, 2018

The US-China Trade War is About to Get Real

US tariffs on China will take effect Friday and target more than 800 different items, including industrial machinery, medical devices and auto parts. Beijing plans to fire back by hitting 545 American products such as SUVs, meat and seafood.

The US measures are expected to take effect first, shortly after midnight ET on Friday. That's around midday in Beijing, and the Chinese government will wait until then to retaliate, as it "will never fire the first shot but will be forced to strike back," Chinese Commerce Ministry spokesman Gao Feng.

This Trump anti-trade policy will result in more expensive goods for Americans, thus lowering their standard of living.

It is all based on Trump's long ago discredited mercantilist perspective.

Open trade is always good even if it is unilateral.


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