How the Trade War with China Will Affect the U.S.

With the onset of Trump’s trade war, diplomatic relations between the U.S. and China—the world’s largest and second-largest economies, respectively—have reached a crisis point. Yasheng Huang, a political economist, MIT professor, and the author of Capitalism with Chinese Characteristics, argues that “a trade war would negatively affect the interest of U.S. consumers, companies, and the financial system of the United States.”

Speaking at the 2018 Aspen Ideas Festival, Huang goes on to explain how the newly-imposed tariffs on Chinese goods will raise domestic prices. He also reveals how the U.S. and China can coexist “peacefully and profitably”—and why the onus is on America to ensure that reality.

[scottjames]

its ok i rather buy an expensive items rather than a virus, no thank you

[wjdonner]

What consumers basically need most are food, clothing, housing, housing appliances etc. The Chinese will not be effected by tariffs on US products so much because there are so many alternatives to US producers. But in the USA all products become more expensive as all alternatives are more expensive than the Chinese products.

[RayMak]

US China Trade War is a lose lose situation. We are supposed to respect and help each other and build a wonderful world together as one. What do you think?

[brianbogholtz]

While I agreed with everything he said, a sweeping reform preventing the theft of intellectual property would have to come first.

[shoulders-of-giants]

Go on US, make all the mistakes you can. By now you guys deserve that wake-up call.

The American Dream is just a dream. Face the reality you have created for the world, & your own people.

[bobby]

This could get really nasty, very quickly. It could cause the world's economy to completely collapse.

[captaingalaxy]

Oh, don't you people worry and fret now, wait til the world markets, let alone Wall Street, catch wind of this. Inflation and recession, anyone??

[stc]

Everything gets more expensive, more GDP, clever! :D

[meisenhu]

Imagine if your local walmart ends up closed forever... aren’t it scary?

[canismajoris]

Best way is to set up distributors in thirds countries. Change the packaging under your own company with Made in Indonesia or Philippines or Russia trade marks.

[cyanidelizards]

America is in debt. This is a moral compass issue.

[kds]

Oh I understand. I own two Chinese manufactured amateur radios. One by Baofeng one by Tytera. I can see prices on those rising already.

[cristopherwescott]

oh and China will not feel it. no we can buy from somewhere else we are consumers like going to Walmart or other store buying from Indonesia or India could be better.

[Science-evhe]

The answer is simple. Increase tariffs on China and decrease minimum wage so companies can hire willing Americans for cheap.

[_sahilyenchilwar]

I m not sure
But
I have read an article
Stated that exports from
china to us has been affected a lot
But
Exports from us to china has just decrease by 2.7 %

[PS-ossr]

Let's make us all *collaborate, * rather than compete — problem solved.

(And by «collaborate» I mean to transition from capitalism (the system that keeps humanity back *more* than it allows us to progress) to a system that works *for everyone, not just for very few of us.* You choose a name for it, as long as it is not based on competition, endless personal accumulation of wealth, and social stratification.)

[cryogenic]

I think the higher prices are a good thing...these cheap products have a much more sinister costs behind them, it has skewed the whole hard work to earning equation

[johnyohann]

The bottom line is: Can countries benefit more by having a domestic economy, with companies at home selling to their own populations, and very little competition from imports? Or having free trade, and having to compete at home against floods of imports, with the only advantage going to the multinationals that export operations to other countries with cheap labor, and then have zero tariffs to pay on shipping back to U.S.? And not concerned about the millions of manufacturing jobs lost in America since 2000.

[aestheticman]

The American people should practice "Amendment I - The United States Constitution."
"Absolute silence leads to sadness. It is the image of death" said Jean-Jacques Rousseau

[pixtopic]

Maybe because of the title of this video, but I don't think trade war ONLY effects the USA, all I know is that RMB is taking heavy beating, China's economy is slowing down, Shanghai stock market tumbled almost 15% this year, most foreigner investments and companies are leaving China ...etc.

How we got here is all because China doesn't full filled many of its promises as a member of the WTO and not willing to respond to USA's concern in reg. "intellectual property rights" and forcing foreigner companies must turned over rights to China if wish to do business in China! All issues was presented to China since last year.