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The trade war with China did not contribute to the growth of industrial production in the United States


Oktober, 26 2020
watermark Economic news

The trade war with China, unleashed by US President Donald Trump, did not achieve its main goal (a return to the growth of industrial production in the country), despite the introduction of duties on the export of Chinese goods.


The tariffs helped narrow the US trade deficit with China in 2019, but overall, the US trade deficit peaked last year and has continued to widen. In August 2020, the deficit of foreign trade in goods reached a record $84 billion due to the fact that American importers began to buy cheaper products from other countries.


At the same time, the Trump administration notes that the introduction of duties forced Beijing to agree to the conclusion in January 2020 of the first phase of a trade agreement, according to which China must increase the volume of purchases of American goods. Presidential advisers also argue that persisting duties on Chinese exports totaling about $370 billion a year continue to put pressure on China and, over time, will force Beijing to abandon non-competitive practices, as well as help the United States to restore manufacturing activity.


US Trade Representative Robert Lighthizer shared another factor supporting the introduction of duties. He said the tariffs were helping to bring back industrial jobs to the US, citing labor market statistics from 2016 to 2020, before the pandemic began. However, experts note that the two-thirds increase in the number of jobs during this period occurred even before the United States introduced the first round of duties on Chinese goods in July 2018. And by early 2020, even before the United States faced the pandemic, industrial employment growth had stalled.


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Pertukaran wang asing amat spekulatif dan kompleks, dan mungkin tidak sesuai untuk semua pelabur. Perdagangan forex boleh menghasilkan keuntungan atau kerugian dalam jumlah yang besar. Oleh itu, adalah tidak digalakkan untuk melaburkan wang sekiranya anda tidak bersedia untuk menanggung kerugian. Sebelum menggunakan perkhidmatan yang ditawarkan oleh ForexMart, sila fahami risiko yang berkaitan dengan perdagangan forex. Dapatkan nasihat kewangan bebas sekiranya perlu. Harap maklum bahawa prestasi masa lalu atau ramalan bukan petunjuk yang boleh dipercayai untuk hasil di masa hadapan.