On Aug 23, China anounced that it will impose as much as 10% tariff on around $75 billion goods imported from US. In the afternoon, the President of US strike back that the US would heap another 5% tariff on around $550 bilion goods from China.
Obviously, there will be input inflation. Most of the tariffs will be burdened by the consumers. As the importers pay the import tariffs, the extra cost will be passed on to the consumers.
As US is a democracy country, while China is not. No matter what the hurt the Chinese people get, they can't complain as the CCP controls everything. It's a different story here in the US. The President have big pressure as there are a lot complain. If most US consumers only focus on their own loss during the trade war, then the country will lose the war and most importantly, loss the future. If you always rely on other countries to provide cheaper goods, you are gambling the future on other countries.
Obviously, there will be input inflation. Most of the tariffs will be burdened by the consumers. As the importers pay the import tariffs, the extra cost will be passed on to the consumers.
As US is a democracy country, while China is not. No matter what the hurt the Chinese people get, they can't complain as the CCP controls everything. It's a different story here in the US. The President have big pressure as there are a lot complain. If most US consumers only focus on their own loss during the trade war, then the country will lose the war and most importantly, loss the future. If you always rely on other countries to provide cheaper goods, you are gambling the future on other countries.
Comments
Post a Comment