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Tag Archives: Trade War

On the fallacy that Americans will eventually win big from the tough bargaining of Tariff Man – Publications – AEI

AEI On the fallacy that Americans will eventually win big from the tough bargaining of Tariff Man At Cafe Hayek, Don Boudreaux displays some more masterful economic badassery by responding to the common narrative that because China stands to lose more economically than America from a trade war that Tariff Man is right to wage this war, here’s a slice: The fact that in a trade war the absolute amount of damage suffered by foreigners might exceed that suffered by fellow citizens is...

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Who pays the Trump tariffs?….. – Publications – AEI

AEI Who pays the Trump tariffs?….. ….”We Do, These Americans Say,” according to a Wall Street Journal article by that name written by Greg Ip, here’s a money quote (italics added): David Weinstein, a trade economist at Columbia University, and two co-authors examined the six waves of tariffs Mr. Trump imposed last year and found prices exporters charged to American customers barely responded to the tariff. Once the duty is included, they estimate Chinese imports’...

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Who is most vulnerable in a trade war?

In a recent Bloomberg piece, Tyler Cowen argues that “China is probably in the more vulnerable position” in the current trade war with the US. While the overall argument is plausible, there are a few questionable points that are worth discussing: To see why the full picture is more complicated, let’s say the U.S. slaps tariffs on the industrial inputs (whether materials or labor) it is buying from China. It is easy to see the immediate chain of higher costs for the...

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Peter Schiff Talks Trade Wars

Monday was another rough day on Wall Street as the ongoing trade war weighed on stocks. The Dow dropped 617 points and closed below Friday’s low. The NASDAQ was down 3.4% on the day. The Russell 2000 was also off by more than 3%.In his podcast Monday evening, Peter Schiff said he thinks the bear market rally is over.Long live the bear market. This bear market rally is dead. We are going a lot lower.”China announced it will impose higher tariffs on most US imports on a...

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Trump Ain’t No Ron Paul: Friday Gold Wrap 05.10.19

Trump has leveled a lot of criticism at the Federal Reserve over that last several months. This has led some people to proclaim that the president is an enemy of the Fed. But as Mike Maharrey explains in this week’s Friday Gold Wrap podcast, Trump is no Ron Paul. The president’s beef with the Fed is more about policy and less about the central bank itself. And we should never forget — policy has consequences. In this episode, Mike gives a simple overview of how the Fed creates boom-bust...

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A year of trade losses in the U.S.-China tariff war….. – Publications – AEI

AEI A year of trade losses in the U.S.-China tariff war….. …. is the title of a post today on Political Calculations blog, here it is in its entirety: In March 2018, a trade war between the U.S. and China began when President Trump initiated tariffs on $50 billion of Chinese-produced goods such as steel and aluminum, with China immediately retaliating with tariffs on U.S.-produced agricultural goods such as pork and soybeans. Earlier this morning, the U.S. Census Bureau released...

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As the Trade War Unfolds Keep an Eye on the Dollar

As the trade war continues to unfold, investors should keep an eye on the dollarHeated rhetoric between the US and China continued as negotiators from the two countries prepared to sit down for the latest round of trade talks. Pres. Donald Trump accused the Chinese of “breaking the trade deal.” Meanwhile, the Chinese threatened to retaliate if the US increases tariffs. Trump has said he will move ahead and hike tariffs to 25% on $200 billion worth of Chinese imports at the end of this...

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The economic impact of Trump’s trade war? Higher prices and reduced income for the USA – Publications – AEI

AEI The economic impact of Trump’s trade war? Higher prices and reduced income for the USA From the NBER Working Paper “The Impact of the 2018 Trade War on U.S. Prices and Welfare” by Mary Amiti (Federal Reserve Bank of New York), Stephen J. Redding (Princeton) and David Weinstein (Columbia): Here’s the paper’s abstract (italics added): This paper explores the impacts of the Trump administration’s trade policy on prices and welfare. Over the course of 2018, the...

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Trillion $ Trump Tweets

Last night, President Trump tweeted that the US was going to move toward higher tariffs on Chinese goods. Global stock markets immediately sold off, losing over a trillion dollars in market value. Today, there has been a partial recovery, but stocks are still significantly lower. How should we think about these losses? One view is that the drop doesn’t matter, as stocks will bounce back after the two sides reach a trade deal.  I do believe that it is highly likely...

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Peter Schiff: Chinese Trade Deal Isn’t Going to Make America Great Again (Video)

The US and China are reportedly getting closer to working out a trade deal. The Chinese have indicated they will import more US natural gas, semiconductors and soybeans. Peter Schiff recently appeared on RT to talk about it.  He said that no matter what ultimately comes out of these trade negotiations, it’s not going to make America great again. Stock markets have rallied in recent weeks, primarily driven upward by news that the trade war could be close to an end. But...

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