Predictably, the effect of Trump’s tariffs on Chinese goods, most of which haven’t even gone into effect yet but soon will, has been to reduce American products exported to that country, especially soybeans. It’s also reduced Chinese exports to the US, of course, but that just means lower economic activity overall that is threatening not only our economy but the global one as well.
China’s trade with the United States is falling as the two sides prepare for negotiations with no signs of progress toward ending a tariff war that threatens global economic growth.
Imports of American goods tumbled 22% in August from a year earlier to $10.3 billion, customs data showed Sunday. Exports to the United States, China’s biggest market, sank 16% to $44.4 billion…Washington imposed 15% tariffs on Sept. 1 on $112 billion of Chinese imports and plans to hit another $160 billion on Dec. 15. That would extend penalties to almost everything the United States buys from China.
Beijing responded by imposing duties of 10% and 5% on a range of American imports. More increases are due on Dec. 15 in line with the U.S. penalties.
U.S. tariffs of 25% imposed previously on $250 billion of Chinese goods are due to rise to 30% on Oct. 1.
So it’s already reducing trade enormously and that’s with only a small portion of the tariffs actually taking effect. It will get much worse if the future tariffs announced do get put in place because they will end up covering almost everything traded between the two countries. Between that and the pending brexit situation in the UK, there is a serious risk that the global economy could be pushed over the edge and back into a deep recession like we had in 2008 and 2009. And you can be sure that it will be everyone’s fault but Trump’s, according to him and his followers, who refuse to hold him accountable for any action he takes.