President Joe Biden has been making headlines recently with his tough talk on China and threats to impose tariffs on Chinese goods. However, according to economists, these threats may be more bark than bite.
Biden has accused China of unfair trade practices and intellectual property theft, and has suggested that he may impose tariffs on Chinese goods in order to level the playing field. But economists point out that while tariffs may sound tough, they are not always effective in achieving desired outcomes.
One reason for this is that tariffs can lead to higher prices for consumers. When the cost of imported goods goes up, companies often pass those costs on to consumers in the form of higher prices. This can be especially harmful for low-income households, who may not be able to afford the increased costs.
Additionally, tariffs can also lead to retaliatory measures from other countries. If the US imposes tariffs on Chinese goods, China may respond by imposing its own tariffs on American goods. This can lead to a trade war, which can harm both countries’ economies.
Furthermore, economists argue that tariffs may not even be the most effective way to address issues with China. Instead, they suggest that the US should work with other countries to put pressure on China to change its trade practices. This could involve negotiating trade agreements that address issues such as intellectual property theft and forced technology transfer.
Overall, while Biden’s tough talk on China may sound appealing to some, economists caution that tariffs may not be the best solution. Instead, they suggest a more collaborative approach that involves working with other countries to address issues with China’s trade practices. Only time will tell if Biden will follow through on his threats, or if they will remain just that – threats.