As U.S. Readies Chinese Import Tax, Worries of Economic Impact Loom Large
*By Alisha Haridasani*
The first round of tariffs for American and Chinese goods goes into effect on Friday, officially plunging the two countries into a trade war that could end up undermining the U.S. economy.
The Trump administration is poised to impose taxes on $50 billion of Chinese imports in high-tech industries, such as robotics, aerospace, and industrial machinery, in an attempt to punish Beijing for intellectual property theft and to rebalance a trade deficit. The first phase of that will affect $34 billion worth of goods.
"The United States will be opening fire on the whole world and also opening fire on itself," said China's Commerce Ministry spokesperson on Thursday, reiterating that Beijing will fight back.
China has promised to immediately hit back with tariffs of “equal scale, equal intensity” on American soybeans, corn, wheat, rice, beef, and poultry.
President Trump announced the tariffs in June and since then the U.S. and China have been locked in a series of threats and negotiations that have rattled markets.
The back-and-forth has already forced companies to rethink their strategies. Chinese companies have started turning away from U.S. soybean suppliers and looking to other sources for agricultural products.
“Farmers in America’s heartland are already feeling the pain,” said Sara Hsu, economist and associate professor at SUNY-New Paltz. “Consumers can expect to feel the pain in the coming months.”
And enduring the pinch isn't going to pay off. Protectionism has historically proven to be destructive for the global economy and won’t achieve what the Trump administration is trying to accomplish, said Hsu.
The tariffs will hurt the American high-tech companies that Trump is trying to protect from intellectual property theft as it becomes increasingly difficult for those companies to do business in China, she said.
“Also, in terms of reducing the U.S.-China deficit, this is a point that I think the administration misunderstands,” she said. “A deficit is actually a good thing for the U.S. because we’re the world’s biggest economic power, and other countries are willing to hold our debt,” said Hsu. Reducing the deficit would signal that the global economy shouldn’t be investing in U.S. debt.
“We’re going to reduce our own power, it’s going to backfire on us.”
The trade spat with China is part of the president’s broader plan to renegotiate American trade deals with other countries. The U.S. has already levied tariffs on steel and aluminum imports from Canada, Mexico, and the EU, angering those allies and prompting them to retaliate.
Shots fired on that front have already claimed one American victim: Harley-Davidson. The motorcycle company announced last month it would move production out of the U.S. to get around the EU’s retaliatory tariffs.
For full interview, [click here](https://cheddar.com/videos/china-warns-u-s-on-trade).
Big Apple workers who deliver for food apps like Doordash and Grubhub will now receive a number of legal protections provided through a package of new regulations that have started going into effect. These updated rules include more control over their deliveries, pay and tip transparency, a higher minimum pay rate, and access to restaurant bathrooms during the workday. New York City Comptroller Brad Lander joined Cheddar to elaborate on the regulations and how the platform holders reacted. "I have to say it's a mixed bag," he said. "Grubhub actually welcomed the legislation and said they recognize they need to do better by their deliveristas, but DoorDash, unfortunately, has actually been pushing back against the legislation."
Thomas Hoenig, Former CEO of Federal Reserve Bank of Kansas City and currently Distinguished Senior Fellow with the Mercatus Center, joined Cheddar News' Closing Bell, where he says the Fed's decision was no surprise, but believes the Fed is behind the curve on raising rates.
Legal cannabis businesses are having a hard time surviving in California with the high cost of doing business and a still-thriving illicit market. In response, nonprofit Supernova Women, founded by women of color, is advocating on behalf of Black and brown shareholders in the cannabis industry. Amber Senter, co-founder, executive director, and chairman of the organization, spoke with Cheddar News about calling for changes in the Golden State's taxation system for legal marijuana. "We're really leaning on the legislators now to support the industry and make sure that this industry, in particular craft cannabis, can survive," said Senter.
After being among the hardest-hit industries by the pandemic, restaurants are still having a hard time staying afloat, with owners claiming that business is worse now due to closures from staff shortages and customer decline than it was three months ago. Mike Whatley, vice president of state affairs and grassroots advocacy for the National Restaurant Association, spoke to Cheddar News about how the sector is reaching out to lawmakers for help. "Working with Senators Wicker, Sinema, and a whole host of bipartisan leaders, we're trying to get the Restaurant Revitalization Fund replenished," Whatley said.
Communities of color are disproportionately affected by climate change and continuously feel the impacts. Mark Magaña, founding president and CEO of Green Latinos joined All Hands to discuss.
The memoir, "COMPROMISED: Counterintelligence and the Threat of Donald J. Trump", tells a familiar story from a bit of a different source: Peter Strzok himself, former FBI Counterintelligence Agents and Agency Veteran who spent most of his very long career investigating some of the most controversial inquiries, most notably in recent American history. Those inquiries were Hillary Clinton's email to even Trump Russia investigations. Former FBI Agent and Author of "Compromised" Peter Strzok, joined Cheddar to discuss more.
President Biden's first year did not come to the close that he had hoped after last night's Senate vote blocked the voting rights bill, a priority that Biden has promoted since his inauguration. Joining us to discuss the voting rights bill, and many others passing through congress is congresswoman Lori Trahan, representing Massachusett's 3rd district.
