President Trump’s dramatic hike in tariffs on Chinese imports is poised to sever the majority of trade ties between the United States and China, warns economist Erica York. Speaking on CNBC, she explained, “Generally if you get north of a triple-digit tariff, you are cutting off most trade.” While some essential imports may remain, the overall impact would be substantial.
Economist Erica York claims President Trump’s triple-digit tariffs on Chinese goods could largely terminate trade between the US and China, leading to substantial economic impacts. The current tariff stands at 145%, escalating following Trump’s announcements. The situation raises concerns about protectionist policies and their historical implications, as well as retaliatory measures from China escalating levies on US imports. York noted the importance of clarifying trade dynamics by July when a tariff reversal is planned.
The current tariff situation presents a complex economic challenge, with soaring rates leading to unprecedented protectionist measures. Trump’s tariffs are projected to generate significant federal revenue, yet they pose risks of further economic strain and heighten trade tensions. As the market reacts unpredictably, clarity remains elusive until the tariff situation evolves further.
Original Source: www.cnbc.com
