The Pettis Paradigm and the Second China Shock
First, he’s threatening broad tariffs on most or all Chinese goods, instead of tariffs targeted at specific, military useful goods. In a post two weeks ago, I explained why broad tariffs are of limited effectiveness:
Broad tariffs cause bigger exchange rate movements , which cancel out more of the effect of the tariffs. Putting tariffs on
... See moreNoah Smith • Manufacturing Is a War Now
Theme - Tarriffs
Tariffs had an under expected effect, threatening the financial landscape, but not dominating
Biggest result might have been the focus it brought to how reliant the world is for certain materials - both physical and processing, on Beijing