Trump's Trade War (Are consumers and investors SCREWED?)
On Tuesday, President Trump announced 10% tariffs on $200B of Chinese goods , further escalating a trade war with China. Naturally, China is expected to retaliate with tariffs on American goods like Soybeans, Automobiles etc. However, is ratcheting tariffs against China really going to be effective in "bringing back American steel jobs" and reining in the the PRC's Made in China 2025 strategy? Are we headed towards mutually assured destruction? In the past, China completely fucked over one of South Korea's largest grocery chains, Lotte Mart, as retaliation for South Korea agreeing to host American missile defense systems, causing them to shutter 75% of their locations in China. This demonstrates that China is willing to win at all costs; they could put 50% tariffs on American cars or they could put 800% tariffs on them if they want. Not to mention the numerous possible negative ramifications for American foreign policy and North Korea. Anyways, what exactly does the United States stand to gain from a trade war with China? I highly doubt slapping on tariffs on Chinese goods will actually help create manufacturing jobs in the United States or prevent China from eating Silicon Valley's lunch a decade or two from now. I get where Trump is coming from, but a trade war just seems like a loss for America, China, the market, and especially consumers. Is the economy SCREWED?