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Trump's triple-digit tariff essentially cuts off most trade with China, says economist (www.cnbc.com)

submitted 3 days ago by [email protected] to c/[email protected]

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Summary

Economist Erica York warned that Trump’s 145% cumulative tariff rate on Chinese imports effectively ends most U.S.-China trade.

The increase includes a recent jump from 84% to 125%, plus a 20% fentanyl-related duty.

Despite a 90-day pause on most other tariffs, York said the U.S. remains on its most protectionist path since the 1940s.

In response, China hiked its retaliatory tariffs on U.S. goods to 84%.

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[–] [email protected] 3 points 2 days ago

Raising prices will still affect the demand curve. Fewer people can afford the goods, so fewer people will buy the goods, which means less money overall.