Trade War: Impact and Prospects for U.S.-China Ties
The U.S.-China trade war has now lasted three years, but many studies showed that it has failed to achieve the major policy goals originally stated by the U.S. administration. Speaking at the Chamber’s Americas Committee webinar on 22 July, Oxford Economics’ Lead Economist Alex Mackle said that the tariffs were damaging to the U.S. economy, leading to higher consumer prices, delayed and cancelled investments, and supply chain disruption. The trade tensions had also hurt the manufacturing sector, as well as other key sectors of the economy such as agriculture and energy.
Mackle also explored some of the possible scenarios for future U.S.-China trade and economic relations. To sum up, he said tariffs and other restrictive measures imposed by the U.S. administration come with an economic cost. However, U.S. multinationals – and increasingly, financial corporations – are continuing to invest heavily in China, and policymakers will likely want to avoid the economic cost of extreme decoupling.
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