— “The favorable theory of tariff increase” should be Suspended!
On the occasion of the 11th round of china-U.S. high-level economic and trade consultations, the U.S. announced that it would raise the tariff on $200 billion of Chinese goods imported into the U.S. from 10 percent to 25 percent, causing a serious setback to the China-U.S. economic and trade consultation process. The U.S. even threw out a “Tariff Advantageous Theory” to cover up the serious impact on the U.S. economy. For me, many Americans do not buy this, Americans are strongly against the imposition of tariffs.
Is the “Tariff Advantageous Theory ” an ignorance or a disguise?
From last year’s “trade war is good” to now there is a constant boast that “China is paying huge tariffs to the United States … These huge taxes will go directly to the U.S. Treasury”, which is claimed to bring more wealth to America, even more than the traditional types of amazing deals. In addition, it is easier and faster for “China to slow down significantly, and the U.S. will automatically accelerate” …… to Some of the U.S. officials, the tariff is as if it were a pie falling from the sky, and it will take no effort; There are also those who continue to create the illusion that the U.S. economy is thriving with tariffs. According to the comments of the international media, this is just another case of US willingness to make “victory “.
According to a research report published by the National Bureau of Economic Research, U.S. Tariffs imposed on its trading partners and retaliatory tariffs imposed by the other countries on the U.S. in 2018 have cost the U.S. $7.8 billion. Tariffs cost U.S. consumers and producers $68.8 billion a year. A 25 percent tariff on $250 billion collecting from Chinese goods imported to the U.S. and a tariff on imported steel and aluminum would cost to lose the U.S. 934,000 jobs a year, according to a study by “the Global Trade Partnership”, a U.S. business consultancy. “The Financial Times” recently reported that the US was left frustrated by its determination to impose higher tariffs on Chinese goods exported to the US rather than reach a deal to end the US-China trade war.
The U.S. “Tariff Advantageous Theory” imagines a situation in which imposing tariffs is tantamount to taking money from China’s pockets, and some people in the United States are sitting back and waiting for profits. But the reality is a different scenario: U.S. importers and retailers have limited ability to absorb tariffs, which are reflected in the end consumer. The U.S. government is putting their hope on companies to find alternative sources of imports, but many U.S. business owners are feeling helpless : Chinese goods are cheap and have good quality, they can only be purchased from China, and the cost of raising tariffs can only be transferred to consumers. Economists at the Federal Reserve Bank of New York, Princeton University and Columbia University have found that tariffs cause U.S. consumers and importers lost $4.4 billion a month last year, and that the tariff revenue the U.S. collects is “not enough to compensate for the losses suffered by consumers who buy imported goods.” Take out the money in the pockets of American consumers, claiming that money fell off from sky.” The American consumer’s wallet is shrinking, how can Americans buy it?
In today’s world, no one can do what they want. If the United States wants to impose tariffs on others, others cannot remain indifferent, and they must be fight back. The pain of imposing tariffs on the United States is obvious. Many farmers in the United States are going through “difficult economic times”. The U.S. government announced $12 billion in farm subsidies last year, however, the proportion of losses cause by rising production costs and reduced exports is nothing. “We can’t get through it, ” said many American farmers and business owners. “For 10 months, the United States, not China, has been paying the full price for the trade war. “Tariffs hurt the Heart of America, a group representing more than 150 U.S. retail, technology, manufacturing and agricultural trade groups, said in a statement that “higher tariffs will only punish U.S. farmers, businesses, and consumers.” But U.S. policymakers have been deaf to these calls. ” Tariff Advantageous Theory ” is just fooling themselves. Trying to solve problems by imposing or threatening to raise tariffs is a complete mistake, It will be disappointing to put your hope on it. We advise that if the U.S. is wise enough to guarantee its own interests, it should on the basis of cooperation, respect and equality and mutual benefit with China to solve the problem.
(Today’s People’s Daily, Xinhua News Agency, Beijing, May 14th)