In Utah, the shadows of the 2018-2019 trade war with China still cast long, lingering effects. Tariffs imposed during that period, particularly on U.S. agriculture, remain in place, showcasing the stubbornness of trade disputes. John Gilbert, an economics professor at Utah State University, highlights the ineffectiveness of tariffs as an economic strategy, stating they primarily harm both the targeted economies and those that implement them.
Gilbert recalls how, during the last trade war, Chinese importers switched their soybean sourcing to Brazil, setting a challenging precedent for U.S. producers to regain market share. He suggests that Trump’s administration might view tariffs as negotiable instruments, having successfully drawn nations like Colombia, Mexico, and Canada to the negotiating table.
Yet, Gilbert warns of the perils of such a strategy. Tariffs, he explains, are effectively taxes on American consumers—forbidding the idea that they target foreign entities. He underscores that importers with slim profit margins tend to pass these added costs onto consumers, leading to widespread economic strain.
The specter of Chinese retaliation looms large once again, particularly aimed at U.S. agricultural exports. Gilbert suggests that if China decided to leverage its control over rare earth materials, the impact could severely disrupt the U.S. technology sector, highlighting the interconnectedness of global supply chains in our modern economy.
While previous tariffs did lead to a surge in domestic steel production, Gilbert cautions that the subsequent price rises ripple through various industries, notably construction and consumer goods. The complexity of these actions necessitates a careful examination of their wider impact on the economy, emphasizing that such tactics come with a hefty price tag.
The impacts of the 2018-2019 trade war with China continue to affect Utah, with existing agricultural tariffs still in force. Economist John Gilbert critiques the efficacy of tariffs as tools that ultimately harm consumers. He warns of China’s potential retaliation, especially towards U.S. agricultural products and technology. While tariffs did increase domestic steel production, they also inflated costs across various sectors, highlighting the broader economic ramifications.
In essence, the potential for a new trade war carries multifaceted implications for the American economy. The lingering effects of past tariffs reveal a complex interplay where consumers bear the brunt of rising costs. Trade policies must navigate the dangerous waters of retaliation, especially with China poised to target vital industries. Thus, while there may be short-term gains, the broader consequences could cast shadows that linger far longer than anticipated.
Original Source: kslnewsradio.com
