What should the US expect from another trade war – KSLTV

Logan – Although many of us may have forgotten about this, the impact of the trade war with China in 2018 and 2019 is still lingering in Utah.

In response to the tariffs imposed by President Trump at the time, the country imposed a number of retaliatory rates for US agriculture that still remain.

The US File of the US can be strongly influenced during a trade war, as it did in 2018-19. (KSL TV)

“As an economic tool, tariffs are a really dumb tool,” says John Gilbert, a professor of economics at the State University Business School in Utah. “They are not very effective in doing a lot, except to injure the economies they are imposed on the economies that impose them.”

Gilbert said that during the last trade war, Chinese importers turned to Brazil for much of their soybean imports to avoid the agricultural tariffs for American goods. He said it was difficult to get a market share like the one back after being lost.

However, Gilbert admits that President Trump and his administration may view the tariffs as a negotiation tool that has recently led Colombia, Mexico, and now Canada on the table.

“This is certainly a game that can be played,” Gilbert said. “This can be a dangerous game.”

If the US joins in a trade war with China now or even with Canada and Mexico, when the current 30-day pause ends, Gilbert said it would harm consumers.

“Tariffs are not taxes on foreigners. They are taxes on US consumers, “Gilbert explained. “These importers usually have very narrow margins and therefore tend to transfer these taxes to the final user.”

Gilbert added that China is likely to handle the retaliatory rates, just as before.

“I would expect China to take revenge once again by heading to US agricultural goods,” Gilbert explained. “If they really want to play on Hardball, China controls the greater part of the world’s delivery of rare ground minerals, and in general your mobile phone, your computer, everything you use. If they decide to limit trade, even more so in these materials, then they can really hit the US technology industry. “

Gilbert acknowledged that the previous round of tariffs had forced the increased production of steel in the United States, but the increased cost of these materials still remains, affecting many industries that use it.

“You can’t do it in an unpleasant way,” Gilbert said. “If you are going to increase home steel production, you can do so by placing a steel tariff, but will harm the construction industry. You will injure the industry for durable goods. “