https://www.forbes.com/sites/sarahsu/2017/09/12/rising-u-s-protectionism-may-hurt-chinas-economy-and-begin-a-trade-war/#30172801a326
Trump has requested to look into the national security implications of China expanding their steel and aluminum trade with the U.S. The implications of China supplying the majority of the steel and aluminum used in the U.S. would weaken America's ability to engage in a military conflict if we were unable to quickly manufacture our own on a domestic basis.Trump is also concerned about the impact of China's trade policies on intellectual property. If it is determined that this is harming U.S. interests, Trump can implement a trade sanction to solve this through section 301 of the 1974 Trade Act.
Obviously, the President of China, Xi Jinping expressed his dislike for the protectionist policies being discussed. He stated “any attempt to cut off the flow of capital, technologies, products, industries and people between economies, and channel the waters in the ocean back into isolated lakes and creeks is simply not possible... Pursuing protectionism is like locking oneself in a dark room. While wind and rain may be kept outside, that dark room will also block light and air." If this comes to actualization, many are predicting a trade war between the two countries.
China has been opening up some industries as free trade zones (FTZ's). Not only will this hurt China, but if China decided to institute retaliatory tariffs against U.S. exports, this could also have a major negative impact on the U.S.'s exporting industry.
1. What do you think about the national security implications of the steel industry and tariffs?
2. Do you feel Trump is acting in the best interest of the U.S. in threatening to impose tariffs?
3. Can trade wars be avoided?
2) Tariffs are very polarizing as they help out some groups and hurt others. If a tariff were to be implemented, it would help American steel companies a great deal as they would be the only place US consumers could buy steel. This would deliver a nice boost to the economy and protect jobs. On the other hand US companies often charge more for products than foreign companies so anything made with steel will cost more. If Trump were to implement these tariffs he would need to be extremely careful as to who he wants to help and who can be pushed aside.
ReplyDelete2) Trump has expressed his intention to impose tariffs on China throughout his whole presidential campaign. With Trump it is difficult to determine whether he wants to impose sanctions because he feels like it or because he believes it will benefit the whole country.
ReplyDeletePutting aside the intentions for the tariffs, according to the Forbes article, the implementation of the tariffs themselves would not be in the best interest for the United States. For instance, the percentage of U.S. imports subject to special tariffs would almost double- from to 3.8% to 7.4%.
Protectionism will negatively effect China's exports and may invite China to retaliate against the United States in the form of a trade war. This would improve conditions for nobody.
2. Though I understand that if a tarriff was implemented, it could potentionally help the U.S., forcing us to solely rely on ourselves and our goods, the main issue is that we receive so much more than just steel from China. China is our largest trading parter. We give them things like agriculture, and exchange goods with them valued at something around 400 billion dollars. Although this might help us boost our own economy, the economy is doing fine as it is at the moment, so there is no reason to put an end to trading with not only one of the largest and most powerful countries, but the country we trade the most with. Finally, if Trump were to impose these tariffs, he would need to be extremely cautious with finding other countries to do business with.
ReplyDelete1. In terms of national security as well as the general wellness of the United States, I think that the tariffs would be very harmful. The US benefits greatly from the exports and technologies of other countries, and without the ability to take advantage of it, we would have weaker military technology and equipment and not be up to date with the other countries that do not have these tariffs and can trade more openly. The tariffs would also lead to less of certain other materials in the US that may cause us to fall behind other countries materialistically and technologically.
ReplyDelete3. I don't believe that a trade war 'must' occur by any means. I do believe that there are times when a trade war is the correct course of action, some might even say inevitable, but there are other times where it is not. In this case, I do not believe it will happen, even if it seems it might, and I do not believe it to be the correct course of action. This is because a trade war will serve only to further our debt, as Chinese manufacturers will remain sole producers for many other countries that America has less control over.
ReplyDeleteTrade wars can be avoided however I do recognize that there are situations in which it is the best course of action. This, however, does not seem to be that situation.
ReplyDelete1. I think that the tariffs would be harmful because the United States benefits from exports and imports. In terms of national security, they would not necessarily be harmful.
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