What Will China’s Tariff Retaliation Mean?
China hits the U.S. with 15% tariffs … Trump wants more drilling and lower oil prices – will he get it? … “financially strained” U.S. shoppers … buy AI Appliers
Chinese tariffs are a go.
This morning, a 10% levy on Chinese goods took effect.
China is already hitting back. A 15% tariff on U.S. coal and liquefied natural gas will begin on February 10. Meanwhile, a 10% levy will be put on American crude oil, farm equipment, and select autos.
These moves appear to be mostly symbolic and strategic.
For example, part of China’s response included news of an investigation into Alphabet over alleged antitrust rules. However, Alphabet pulled Google’s search engine services to China back in 2010. So, this isn’t exactly an economic A-bomb. The moves appear more intended to give China some poker chips for leverage at the negotiation table.
That doesn’t mean the situation won’t devolve into something far worse, but for now, this is a relatively tame reaction.
We’ll keep you updated.
Oil isn’t getting the spotlight it deserves
It’s a key variable on Trump’s economic chessboard. The President wants and needs lower energy prices, but that’s going to be a hard sell to the groups on the other end of the negotiating table.
President Trump campaigned on the slogan “drill, baby, drill.” More U.S. oil at lower prices is critical for Trump’s vision for a few reasons:
One, more U.S.-sourced energy will have a downward effect on prices at the pump. History shows that this is a big issue for voters, improving sentiment toward the economy.
Post Comment