Gaps in the product line or supply chains due to any tariffs can be filled by US businesses with the help of cash free grants or zero interest loans from banks to get stauff into the market and stop inflation.
Economists say tariffs on Chinese imports could lead to lower global inflation.
From the media
Trump warned before this month’s election that he would slap tariffs of up to 60% on China and up to 20% on other US trade partners.
Trump, wearing a blue suit and red striped tie, stands by an American flag
Trump vows to impose tariffs as experts warn of price hikes and angry allies
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However, Dhingra said the “textbook” impact of the world’s largest goods importer imposing such a large tariff on products from the world’s biggest exporter would be for global goods prices to fall.
Chinese firms would respond to tougher trade barriers by attempting to find buyers in alternative markets, which could lead them to lower their prices to sell similar volumes, including in the UK, she said.
“It takes a massive amount of demand out of the world market. The way exporters, say in China, would respond to that would be to respond with prices, world prices, as they don’t want to lose market share,” she said.
Economists have warned Trump imposing punitive import tariffs on US trading partners will drive up inflation in the world’s largest economy, as the costs would be borne by US consumers. However, it would also affect the wider global economy.
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