Four years into the trade war, are the US & China decoupling? Well, US imports of some of Chinese have tanked (others increased). It has mattered.
W/ Biden upping the ante, rather than lifting tariffs, we can expect more decoupling. Watch Investment.
piie.com
W/ Biden upping the ante, rather than lifting tariffs, we can expect more decoupling. Watch Investment.
piie.com
Overall imports from China declined to 18% of total vs 22% since the start of trade war.
Meaning, US imports from the rest of the world are 38% higher.
Meaning, US imports from the rest of the world are 38% higher.
Do tariffs work? Of course they do. The 25% tariffs have tanked imports from China from that category.
Btw, I predicted this.
Btw, I predicted this.
Remember my trade-war tweets that went viral that everyone hated but ultimately is not perceived as, well, what can I say, something that has proven to be true to impact TRADE & INVESTMENT & RESHUFFLING OF SUPPLY CHAINS.
Biden doing more & not repealing.
Biden doing more & not repealing.
No tariffs, no decoupling, according to the analysis of non-tariffed item.
Btw, they are going to be included at some point in some form of curb (chips act for example will impact beyond the chip sector).
Btw, they are going to be included at some point in some form of curb (chips act for example will impact beyond the chip sector).
Even for non-tariffed item like smartphones, the reshuffling of supply chains by Samsung Electronics, which closed its last China plant in 2019, has led to an increase of Vietnam's shipment to the US to 22% of total from below 10%.
Vietnam is making inroads into non-tariffed items due to reshuffling of supply chains by South Korea and Japanese corporates. China still dominates exports to the US in sectors not tariffed like video game consoles/toys/laptops etc. Even w/ non-tariffed items, reshuffling, slowly
Do tariffs work? You bet they do. Imports of tariffed items FELL sharply from China.
Look at IT hardware and consumer electronics from China. Who is growing? Well, ROW!
Look at semiconductors volume falling before the curbs.
For sure Pres Biden's latest curbs will make that shrink even more.
Do tariffs/curbs work? You bet they do regarding imports from China directly.
For sure Pres Biden's latest curbs will make that shrink even more.
Do tariffs/curbs work? You bet they do regarding imports from China directly.
Note that tariffs have costs, like higher import costs. However, they do work in adding costs to imports from the country targeted for the sectors targeted, which have proven to have suppressed volume from tariffed items.
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