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Trump Tariff Hurting US More Than They Are Hurting China

01 Aug 2019 Wadsam Afghanistan Business News

Trump’s former chief economic adviser, Gary Cohn, said the

battle has had a “dramatic effect” on US manufacturing and capital investment.

Mr. Cohn resigned from the Trump administration in March

2018, and was the former president of Goldman Sachs bank. He was a very unusual

hire for Trump since he was a democrat in a Republican administration.

Trump and Cohn had different mentalities; Cohn focused on

economic internationalism whilst Trump focused on economic nationalism. Cohn

resigned from the National Economic Council after Trump decided to impose

import tariffs on steel and aluminum.

Cohn stated that the “Chinese economy is driven by credit

and credit availability. Credit and credit availability are determined by the

central government. And they can turn it on and they can turn credit off.”

Cohn warned that everyone loses in a trade war, and tariffs

will not benefit the United States economy, even though Trump believes it will.

Cohn stated that US’s economy is 80% service-based, and the

80% is doing well because it is not being tariffed. The tariffs have made it

expensive for the US to import vital products from China, which offsets effects

of Trump’s tax cuts where designed to help the US economy.

There is a low percentage of manufacturing job creation in

the US as the equipment needed to build factories in the United States are

expensive now due to the tariffs.

The trade wars have also created geopolitical uncertainty,

according to Mr. Cohn. Investors and businesses do not want to invest in the

United States now that there are trade wars between China and the United

States. Henceforth, it is obvious that the trade wars are hurting the United

States.

The post Trump Tariff Hurting US More Than They Are Hurting China appeared first on Wadsam.

Original Link: https://wadsam.com/international-business-news/trump-tariff-hurting-us-more-than-they-are-hurting-china/

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