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Michael A Alexander's avatar

This makes no sense. Tariffs are sales taxes in imported goods. The are paid for by American consumers or American businesses. Chinese companies do not pay anything.

Yes it will reduce exports to the US, But why is gifting Americans with Chinese goods in exchange for worthless dollars a good thing for China? You might as well throw the goods into the sea. You get the same stimulus effect.

The only thing you don't get with the sea option is the mass of worthless US government bonds that you would otherwise have in exchange for these goods.

Trumps tariffs are probably the best thing that would ever happen to China. It just goes to show how Trump is intimidated by Chairman Xi just as he is of Vladimir Putin.

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