'Trump has made us weak' — Paul Krugman says the US-China trade deal achieved almost nothing, and consumers and farmers paid the price
with China achieved almost nothing, and American consumers and farmers footed the bill for his trade war over the past 18 months, according to Paul Krugman.
"Trump is going to be claiming victory in his trade war," the Nobel Prize-winning economist and New York Times columnist."The truth is that there are almost never winners in trade wars — but there are losers. And however Trump may try to spin this, he lost." As part of its"phase one" agreement with China, the US agreed to scrap planned tariffs on $160 billion of Chinese imports and halve the tariff rate on another $120 billion of Chinese goods to 7.5%.In exchange, the Trump administration said China would spend at least $16 billion more on agricultural goods in each of the next two years, and overall US exports to China would nearly double.
"Trump tried to bully them; they hung tough; and are basically ending up where they started, buying agricultural products while selling us increasingly sophisticated manufacturing goods," KrugmanDuring the trade war, US exports to China have dropped in price by more than Chinese exports to the US have. The trend suggests US consumers paid for the tariffs and the Chinese found it easier to source substitutes for US goods, Krugman continued.
"Trump wimped out early on trade war with Mexico, basically leaving NAFTA intact but trying to stick his name on it,"
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