Are Tariffs Helping Or Hurting America’s Economy?
President Trump has in recent months taken a strong stance on trade, wielding tariffs as a political tool. He has frequently opted to increase tariffs on foreign imports in what he says is an effort to make trade relationships more favorable to the U.S. Earlier this week, for example, Trump escalated the trade war with China, saying he would increase tariffs on Chinese products from 10% to 25% this Friday. In addition to seeking a favorable trade relationship with China, Trump administration officials have demanded in trade talks that the Chinese government address intellectual property theft, government business subsidies and currency manipulation.
Tough trade negotiations are not exclusive to the U.S.-China relationship, however. The U.S. and Mexico have been unsuccessful in renewing a 2013 agreement that suspended a U.S. anti-dumping investigation; as a result, the U.S. is imposing a 17.5% tariff on tomatoes exported from Mexico to the U.S.Trump has likewise threatened to impose tariffs on the Mexican car industry. Nonetheless, Mexico became the top U.S. trading partner in late April. Joining Worldview to discuss the U.S.’ ongoing trade disputes is Phil Levy. Levy is a senior fellow on the global economy at the Chicago Council on Global Affairs.