There Are Consequences to These Tariffs, Says Asian Trade Centre's Elms

Jun.14 -- Deborah Elms, executive director and founder of Asian Trade Centre, discusses the Trump administration's approval of tariffs on about $50B worth of Chinese goods and the retaliation from China. She speaks on "Bloomberg Markets: Asia."

[cathyzhang]

Regular Americans think made in America is really made in America, but very few things are 100% made here. Take a car for exemple, the tires are made in Indonesia, the Engine is maybe from Japan or U.S. The body is maybe assembled in Mexico, but with steel from China. So when you put 25% tariffs on this car, who is going to pay for everybody, including America who initiates the tariffs.

[anon]

Lots of talk about a trade deficit, but what about US corporate data? US companies have sold more to the rest of the world than other countries have sold to the US in the past ten years. Chinese consumers own more iPhones and buy more General Motors cars than US consumers, BUT they are sold to China not through US exports but through Chinese subsidiaries of multinational enterprises. Maybe the US ‘deficit’ is to do with the way its own multinational corporations conduct their business.