Summary
Economist Erica York warned that Trump’s 145% cumulative tariff rate on Chinese imports effectively ends most U.S.-China trade.
The increase includes a recent jump from 84% to 125%, plus a 20% fentanyl-related duty.
Despite a 90-day pause on most other tariffs, York said the U.S. remains on its most protectionist path since the 1940s.
In response, China hiked its retaliatory tariffs on U.S. goods to 84%.
JeeBaiChow@lemmy.world 1 week ago
Question: are the Chinese goods still cheaper than their US equivalents, in spite of the 145% tariffs? If so, what does china care? It’s only the us consumer that will pay the price.
duhbasser@lemm.ee 1 week ago
That’s why they care. China sells the US a lot of things and cutting off your biggest consumer isn’t good for your economy. China understands this and is now starting to dump their US debt via bonds so they’re not tied to US based securities. China will find another trading partner because Trumps a fucking moron and the other countries he’s isolating need someone to fill their trading gap.
surewhynotlem@lemmy.world 1 week ago
Raising prices will still affect the demand curve. Fewer people can afford the goods, so fewer people will buy the goods, which means less money overall.