The prospect of the Trump administration imposing a 60% tariff on imports from the Chinese mainland has raised concerns among economists and business leaders alike. According to a comprehensive analysis that incorporates China's customs export data and the share of Chinese exports in key U.S. industries, such a drastic tariff increase is poised to deliver a severe blow to the U.S. economy.
The Peterson Institute for International Economics conducted a recent quantitative study that underscores the potential ramifications of these tariff policies. The study suggests that a tariff hike of this magnitude would likely trap both the U.S. and China in a tariff-driven trade war, effectively halting bilateral trade between the two economic giants. The suspension of China-U.S. trade relations is projected to exert three major negative impacts on the U.S. industrial production and overall economy, with repercussions that could last for years.
One of the most immediate and severe consequences highlighted by the Peterson Institute is the impact on the U.S. agriculture, forestry, and fisheries sectors. These industries would face the most significant and prolonged setbacks, threatening the livelihoods of countless American workers and disrupting supply chains that rely heavily on Chinese imports.
Reference(s):
The US will remain biggest victim of Trump's new tariff policies
cgtn.com
