Here’s how hard the tariff fight could hit the economy, by William Watts.
The U.S. early Friday increased tariffs on $200 billion of Chinese goods to 25% from 10% and President Donald Trump threatened to extend levies to other goods from the country in an attempt to ratchet up pressure on Beijing as trade negotiations continue. Beijing on Monday said it would retaliate, lifting tariffs on $60 billion of U.S. goods as high as 25%.
It’s going to be a little painful, but how else can China’s cheating be stopped?
For the first time in quite a few years, the U.S. government is standing up to China’s authoritarian regime. China has been a bad actor for a long time–stealing intellectual property, engaging in unfair trade practices, bullying its East Asian neighbors. The markets are skittish about the current trade impasse, but I think most Americans understand that trade is the lever we can use to deter Chinese misdeeds.