Saturday, July 7, 2018

How will the trade war started by the US end?

First posted on Quora.

It will end when Trump hears enough complaints from (1) American farmers who suddenly have all kinds of harvest ready for export but no place to sell to, (2) American consumers who find prices on everyday goods increase by 15 to 25%, and (3) American multinational corporations with locations all around the world telling him that tariff on intermediary goods they make or buy and tariff on final products they export are killing their bottom line.

At that point when the voices of discontent are sufficiently loud and because Trump is not tone deaf, he will declare, possibly with China’s complicity, that he has won the trade war and is calling an end to the war.

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