It looks like a trade war is taking shape. As reported in the Guardian,
China will defend its rights under World Trade Organisation tariff rules if US president-elect Donald Trump moves toward executing his campaign threats to levy punitive duties on goods made in China, a senior trade official has said.
China’s state-run Global Times newspaper last week warned that a 45% Trump tariff would paralyse US-China bilateral trade.
“China will take a tit-for-tat approach then. A batch of Boeing orders will be replaced by Airbus. US auto and [Apple] iPhone sales in China will suffer a setback, and US soybean and maize imports will be halted,” the newspaper warned.
The irony about all this is that there is no one who doesn’t enjoy free trade; who doesn’t like cheaper products? It’s just that those who complain about China and the market economy are not aware of how much extra wealth they consume because of free trade, only the costs.
Elites took Trump literally but not seriously. Trump supporters did just the opposite. For the benefit of his voters, lets hope that Trump is not serious about 45 percent tariffs.