A Progressive View on the US-China Trade Battle
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FEATURING RICHARD WOLFF – International markets are jittery from US-announced tariffs on Chinese imports and China’s swift response with its own announced tariffs. The battle of tariffs between the world’s top economic powerhouses was initiated by US President Donald Trump who frequently accused China of being a “currency manipulator,” during his presidential campaign.
Earlier this year Trump imposed a 30% tariff on solar panel imports from China and then said during his State of the Union address that, “rivals like China…challenge our interests, our economy and our values.”
Now, after Trump proposed a 25% tariff on Chinese imports like semiconductors and aircraft equipment just days ago, China responded by announcing a similar tariff on US imports including soy beans, beef, cars, and more.
Some commentators have dismissed fears of a trade war as the tariffs only impact a minuscule portion of the economies of both nations. But, what if the war escalates? And, what about the fact that the US has a massive trade deficit with China, and that China owns more than a trillion dollars of US debt?
Richard Wolff, visiting professor at the New School University, New York and professor of economics emeritus at the University of Massachusetts, Amherst, author of a number of books including ‘Democracy at Work: A Cure for Capitalism’, ‘Occupy the Economy: Challenging Capitalism’, ‘Imagine: Living in a Socialist USA’, and ‘Capitalism’s Crisis Deepens: Essays on the Global Economic Meltdown.’ He also hosts Economic Update.