Today I Learned... About the Trade War Between US and China
History repeats itself. Rising tariffs on other nations have caused problems for the United States in the past and looks like it could do so today too. A famous case was the Smoot-Hawley tariff. So is the Tariff of Abominations. All of these tariffs have caused internal problems as well as foreign relationship problems. On May 10, President Donald Trump took another step towards setting the tariff on China to a whopping $200 billion dollars.
The United States wants to continue to have the freedom to trade with China, but they also want intellectual property rights. The United States wants to get investment treaties with both China and India and that is next on their to-do list. I think raising the tariffs on China is necessary so we can support the American economy. So many of our goods are produced in Asia and we are losing out on opportunities to give more people jobs. Hopefully, raising the tariffs can help the US start to manufacture internally now. However, I think the US went about this the wrong way. They tried to force their way in and raise the tariff dramatically. It needs to be a slow transition, just like how inflation goes up gradually and doesn't suddenly spike up. Because of the way Trump dealt with the situation, the stock market took a tumble. On Friday, Dow Jones dropped over 500 points. Thankfully, the stock market started to climb back up, but it still has yet to fully recover. To recap, I think the hike in the tariff was necessary but could have been handled in a more compliant way.
Kasich, John R. “Perspectives: The Best Way for the US and China to End the Trade War.”
CNN, Cable News Network, 10 May 2019,