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Commentary: US trade war draws fire against itself
Peoples Daily Commentator
Washington’s trade war not only disrupts the global economy, but also severely harms the interests of the US itself.
Even various groups in US worry about the trade war.
Leading American motorcycle manufacturer Harley-Davidson Inc. was an early casualty of the trade war, as it was forced to shift some of the production of its iconic motorcycles out of US in response to the retaliatory tariffs imposed by European Union on June 25.
As tensions escalate, General Electric (GE) was also quick with both dividend cut and booting from the Dow Jones industrial average, reported Investors.com.
The US’s trade war is tantamount to erecting an invisible wall between international businesses.
The trade war will not only hamper the efficient supply-chain of goods on a global level, but also lead to a corresponding rise in prices and less investment by corporations.
According to a research by Information Technology and Innovation Foundation, a public policy think tank based in the US, a 25% tariff on information-and-technology products will result in a loss of approximately $332 billion in the US economy over the next decade.
In order to counter such measures, major trading partners have to impose $90-billion tariffs on the US, which could threaten employment in the US. A $6-billion loss is likely to take place in the near future when soybean buyers lose their price advantage in the Chinese market due to 600 yuan-per-ton price increase, the American Soybean Association has estimated.
There is no winner in a trade war, as unilateral action to impose tariffs has never been successful strategy. In 2002, the US government imposed tariffs on imported steel products, resulting in a net loss of about 200,000 American jobs. In 2009, the US government placed tariffs on imported tires from China, leading to a net loss of approximately 2,500 American jobs.
Even various groups in US worry about the trade war.
Leading American motorcycle manufacturer Harley-Davidson Inc. was an early casualty of the trade war, as it was forced to shift some of the production of its iconic motorcycles out of US in response to the retaliatory tariffs imposed by European Union on June 25.
As tensions escalate, General Electric (GE) was also quick with both dividend cut and booting from the Dow Jones industrial average, reported Investors.com.
The US’s trade war is tantamount to erecting an invisible wall between international businesses.
The trade war will not only hamper the efficient supply-chain of goods on a global level, but also lead to a corresponding rise in prices and less investment by corporations.
According to a research by Information Technology and Innovation Foundation, a public policy think tank based in the US, a 25% tariff on information-and-technology products will result in a loss of approximately $332 billion in the US economy over the next decade.
In order to counter such measures, major trading partners have to impose $90-billion tariffs on the US, which could threaten employment in the US. A $6-billion loss is likely to take place in the near future when soybean buyers lose their price advantage in the Chinese market due to 600 yuan-per-ton price increase, the American Soybean Association has estimated.
There is no winner in a trade war, as unilateral action to impose tariffs has never been successful strategy. In 2002, the US government imposed tariffs on imported steel products, resulting in a net loss of about 200,000 American jobs. In 2009, the US government placed tariffs on imported tires from China, leading to a net loss of approximately 2,500 American jobs.
