Tariffs and countertariffs may mark the start of an inevitable showdown between the world’s two most important nations.
Let’s not sugarcoat it anymore. The U.S. and China are in a trade war. Two weeks after President Trump imposed broad tariffs on imports of steel and aluminum from China and other countries, he started the process of slapping punitive duties on tens of billions of dollars of Chinese imports and restrictions on Chinese investment in the U.S. In Beijing, President Xi Jinping was quick to retaliate, hitting U.S. exports of nuts, pork, and other products with tariffs and warning tougher measures could come. The Chinese Embassy in Washington, in a formal statement, pledged the country would “fight to the end.”
Economists and Wall Street bankers are providing estimates of what a trade war would cost in economic growth, jobs, and corporate earnings. But the bigger, long-term consequences are harder to forecast. Perhaps this trade war will be resolved through negotiations, as U.S. Commerce Secretary Wilbur Ross, an architect of Trump’s policy, has suggested. Talks between the two sides already appear to be under way, behind the scenes and without the hyperbole. The crisis might dissipate into a big nothing, with Xi tossing a few concessionary crumbs at an impatient and inconsistent Trump, who may prefer quick, tweetable wins to the hard work of changing the Chinese trade practices that really threaten U.S. business.
But a darker possibility cannot be ruled out: This trade war may be a critical turning point in history, the moment when the irreconcilable ideological and economic differences between the world’s two most important countries burst into the open. In that case, the world may never be the same.
Esta historia es de la edición April 02, 2018 de Bloomberg Businessweek.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición April 02, 2018 de Bloomberg Businessweek.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor? Conectar
Instagram's Founders Say It's Time for a New Social App
The rise of AI and the fall of Twitter could create opportunities for upstarts
Running in Circles
A subscription running shoe program aims to fight footwear waste
What I Learned Working at a Hawaiien Mega-Resort
Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.
How Noma Will Blossom In Kyoto
The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking
The Last-Mover Problem
A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps
Tick Tock, TikTok
The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban
Cleaner Clothing Dye, Made From Bacteria
A UK company produces colors with less water than conventional methods and no toxic chemicals
Pumping Heat in Hamburg
The German port city plans to store hot water underground and bring it up to heat homes in the winter
Sustainability: Calamari's Climate Edge
Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment
New Money, New Problems
In Naples, an influx of wealthy is displacing out-of-towners lower-income workers