Tuesday, 15 November 2016

Why Trump has aggressive policies for China?

1 Due to trade deficits, US imports exceed then exports.
Trade imbalances.
Trumps has called the Chinese 'cheaters'

2 China currency manipulations. Trumps has labelled China a currency manipulator.
Because China devalue its currency relative to dollar.


3 to enhance employment opportunities in the US.
Trump explained in his debate that he will pledge a tariff of 45% on Chinese products in order to increase the manufacturing in US Soil.
In my opinion this policy will not be fruitful as what Walmart experienced as company attempted to reshore jobs, company unable to produce goods at low price when American Labor was used.
Raising tariff will certainly result in prices surges on consumer goods while  having
A smaller impact on job creation

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