Monday, November 9, 2020

Economics: How Donald Trump Lost His Trade War


(Drivebycuriosity) -  Donald Trump`s trade war against China has a new
casualty: Donald Trump himself. The trade war cost him voters and changed the balance in favor of Joe Biden. Why that? Trump`s massive tax hikes on Chinese products and his blockade of Chinese imports and companies (Huawei) did a lot damage to the US economy and pissed off many potential Trump voters. Eventually the trade war slowed economic growth in the US since 2018 and made the Covid-19 recession even worse. 

Imports from China, including apparel, hardware, furniture and toys, got more expensive, hurting families with low incomes. Higher prices for many imported products, including Aluminum & steel, harmed US car producers and other industries, which rely on cheap primary products, and sucked money out of consumer`s wallets, reducing the purchases of US products. US farmers lost markets because China bought less corn, wheat & fewer pork from the US as a retaliation. The trade war also disconnected complicated supply chains. As a result the trade war destroyed American incomes & jobs, not helpful in an election. There is hope that Trump`s successor will end the suicidal trade war soon.


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