Found 39 article(s) for author 'Tariffs'

Trump’s Mercantilist Mess

Trump’s Mercantilist Mess. Robert Barro, September 5, 2019, Opinion, “When US President Donald Trump boasted that trade wars are “easy to win” in March 2018, it was convenient to dismiss the remark as a rhetorical flourish. Yet it is now clear that Trump meant it, because he genuinely believes the bizarre and anachronistic macroeconomic theories underlying his approach.Link

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Trump Is Losing the Trade War With China

Trump Is Losing the Trade War With China. Jason Furman, August 19, 2019, Opinion, “President Trump’s China strategy is failing. His tougher approach has yielded no meaningful Chinese concessions but is increasingly damaging the U.S. economy. Today China is more integrated with the rest of the world while the U.S. is more isolated. To combat China’s unfair, statist economic practices effectively, the U.S. must change its approach, enlisting allies and international institutions to advance a more focused set of demands.Link

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The currency manipulation game is afoot – but that’s better than a trade war

The currency manipulation game is afoot – but that’s better than a trade war. Jeffrey Frankel, August 13, 2019, Opinion, “The trade war between the United States and China is heating up again, with U.S. President Donald Trump abruptly announcing plans to impose a 10-per-cent tariff on the US$300-billion worth of imports from China that he had so far left untouched. The Chinese authorities then allowed their currency, the renminbi, to fall below the symbolic threshold of seven yuan for every U.S. dollar. The Trump administration promptly responded by naming China a “currency manipulator” – the first time the U.S. had done that to any country in 25 years. Pundits declared a currency war, and investors immediately sent global stock markets lower.Link

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Can Global Rules Prevent National Self-Harm?

Can Global Rules Prevent National Self-Harm? Dani Rodrik, June 11, 2019, Opinion, “Most policy mishaps in the world economy today – as in the case of US President Donald Trump’s tariffs – occur as a result of failures at the national level, not because of a lack of international cooperation. And, with the exception of two types of cases, countries should be allowed to make their own mistakes.Link

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Tariff Passthrough at the Border and at the Store: Evidence from US Trade Policy

Tariff Passthrough at the Border and at the Store: Evidence from US Trade Policy. Alberto Cavallo, Gita Gopinath, May 2019, Paper, “We use data collected at the border and at retailers to characterize the impact of recent changes in US trade policy on importers, consumers, and exporters. We start by studying the tariffs on imports of steel and Chinese goods that were imposed during 2018. We find little difference in the “at-the-dock” ex-tariff price levels and stickiness for otherwise equivalent goods that were affected and not affected. This nearly complete passthrough of tariffs to the total price paid by importers suggests the tariff incidence has fallen largely on the US. We simultaneously estimate exchange rate passthrough and find the response to be far more muted. Next, in-progress analyses of retail prices preliminarily show more heterogeneity, with the higher cost of imports passed through to consumers for some goods, such as washing machines, but absorbed by lower retailer profit margins for others, such as many from China. Finally, in contrast to imports, US exports subjected to retaliatory tariffs exhibited declines in their ex-tariff prices relative to equivalent but non-targeted goods.Link

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The Real Cost of Trump’s Tariffs

The Real Cost of Trump’s Tariffs. Jeffrey Frankel, May 23, 2019, Opinion, “Whereas winners tend to outnumber losers when trade is liberalized, raising tariffs normally has the opposite result. US President Donald Trump appears to have engineered a spectacular example of this: his trade war with China has hurt almost every segment of the US economy, and created very few winners.Link

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There’s a revealing puzzle in the China tariffs

There’s a revealing puzzle in the China tariffs. Lawrence Summers, May 14, 2019, Opinion, “On Monday, China announced new tariffs on $60 billion of U.S. exports, and the United States threatened new tariffs on up to $300 billion of Chinese goods. These actions were cited as the principal reason for a decline of more than 600 points in the Dow Jones industrial average, or about 2.4 percent in broader measures of the stock market. With the total value of U.S. stocks around $30 trillion, this decline represents more than $700 billion in lost wealth. This was not an isolated event. Again and again in the past year, markets have gyrated in response to the state of trade negotiations between the United States and China.Link

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Chinese slowdown impact: Here’s what experts have to say

Chinese slowdown impact: Here’s what experts have to say. Kenneth Rogoff, March 8, 2019, Video, “The Chinese Premier Li Keqiang, China’s second most powerful man, next to Xi Jinping, this week warned his country’s highest lawmaking body that the country will face a more complicated environment and grave risks and challenges. Addressing the National People’s Congress, he set the country’s economic growth at 6 to 6.5 percent this year, just a shade lower than the 6.6 percent it achieved in 2018. He also promised lower taxes and fewer burdens on the private sector. So, should the world read this warning as an indication of deeper troubles for the Chinese economy or should one be confident that China can deliver a 6 percent plus growth this year? And what does a slightly slowing China mean to the world economy?Link

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Will the US Capitulate to China?

Will the US Capitulate to China? Martin Feldstein, February 25, 2019, Opinion, “The most important problem that a bilateral deal between the United States and China needs to resolve is Chinese theft of US firms’ technology. Unless the Chinese agree to stop stealing technology, and the two sides devise a way to enforce that agreement, the US will not have achieved anything useful from Trump’s tariffs.Link

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