Trade dispute with China: Both sides pay

China and the US remain in the trade dispute unyielding. Especially Trump is self-aware. The consequences of the conflict, the US consumer will feel but now must also give Trumps economic adviser.

For the US is running trade dispute with China, everything according to Plan, at least according to President Donald Trump. "We are exactly where we are with China want to be", he tweeted.

Also, the Chinese government is confident: "China will never yield to external pressure," said the foreign Ministry spokesman Geng Shuang. The people's Republic have the self-confidence and the possibilities to defend its legitimate rights.

washing machine costs 86 dollars more

The cost of the trade dispute, especially among consumers in the USA. The reason for this is Because duties are not paid by the Chinese government, or companies with headquarters in China, but by importers of Chinese goods.

in General, U.S. companies or U.S. registered subsidiaries of foreign companies. These pass on the costs, in turn, often to their customers who are predominantly manufacturers and consumers in the United States.

Already, consumers must engage in a variety of products deeper into the bag. "The duties are paid by American companies and consumers, not from China," says David French, of the retail trade Association National Retail Federation in Washington. According to a study by the University of Chicago and the New York Fed, the price of a washing machine has increased in the past year to an average of 86 dollars. A dryer now costs 92 dollars more.

A hidden tax increase

Trumps economic adviser Larry Kudlow acknowledged that the increased US duties will affect Goods from China in both countries. "In fact, both sides are numbers," he told the station Fox News. US citizens would have to pay the import duties. The current trade policy acting as a hidden tax increase.

Furthermore, Kudlow spoke earlier statements of the President, according to which money flows out of China and directly to the American state is of benefit. If China does not pay the imposed duties previously admitted Kudlow.

Kudlows assessment of the US economy, however, able to assert itself. "We are in a great shape to correct to 20, and more years of unfair trade practices with China." This risk could be the USA without the economy in any significant way to damage it.

Trump makes pressure and threatens

The two largest economies in the world, been stalling for more than a year of each other with punitive tariffs. On Friday, a inch increase from ten to 25 percent for Chinese Goods to the value of 200 billion dollars was in force. The trade conflict impacted the financial centers of the world, and stoking fears of a global economic downturn.

Despite the economic uncertainties tweeted Trump, the US had "no reason to hurry". Nevertheless, he called on called on the Beijing government to act now and not wait until after the U.S. presidential election in 2020 - he'll win. An agreement would be "much worse", when it was negotiated in his second term, wrote Trump.

More:

Trump and the trade dispute: escalation as a tactic, 11.05.2019 Atlas |USA |Washington D. C.

From the archive