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The US initiated trade war will also harm the United States itself

Jun. 19, 2018

The International Monetary Fund said that "trade warfare" is also a risk factor for the U.S. economy. If the U.S. and partner countries are caught in a retaliatory campaign to increase tariffs, "it will be a factor that will lower investment both inside and outside the United States."

U.S. business leaders said that when in July such countries as the European Union, Canada, and Mexico announced simultaneous retaliatory tariffs on the United States, the U.S. retailers, farmers, and auto workers ... all U.S. workers involved in the global value chain will have interests. In danger. 


According to internal data from the National Chamber of Commerce in the United States, the United States will reduce more than 600,000 jobs due to the US-EU-China trade war. Scotiabank’s report also believes that in the case of radical protectionism, the United States’ economic growth in 2020 will shrink by 0.1 percentage point.


The U.S. Apparel and Footwear Industry Federation stated that the retaliatory measures of various countries may harm the interests of U.S. farmers and textile manufacturers, and increase the cost of the apparel and footwear industry supply chain. The President of the Federation, Rick Helfen Bein, said that President Trump is obsessed with tariff measures. He believes that he can freely wield tariffs, but the use of this measure will have serious consequences. The Congress must now step in and end this dangerous obsession.


Ford Motor Company stated that it hopes that the U.S. and other governments will work together through the negotiations to solve the problems.

U.S. semiconductor industry professionals believe that Trump’s trade war will damage U.S. companies and weaken U.S. competitiveness. Many companies in the semiconductor industry are deeply disgusted at the involvement in the trade war. They think that the impact of the trade war will spread to chip makers involved in complex supply chains. Some U.S. companies will therefore be subject to tariffs imposed on their own products. The IT industry association believes that tariffs may increase consumer costs for products such as computers and mobile phones.


Kentucky’s House of Representatives, James Coomer, supported Trump’s taxation but feared that the state’s agriculture would be severely hit. Kevin Brady, chairman of the House Committee on Fundraising, believes that adding tariffs will seriously affect the export of "Made in the United States" to the world. Many industries will suffer "destructive retaliation", especially agricultural products and chemicals.


The U.S. Chamber of Commerce, the National Association of Retailers, the National Association of American Manufacturers, the American Soybean Association and other industry associations have issued statements expressing their opposition to the use of tariffs as a means to solve economic and trade issues.


Wall Street analysts and economists pointed out that if the trade disputes cause the U.S. economic growth to slow down, the U.S. job market will be affected and the U.S. family property will suffer losses; trade disputes will also offset the December tax cuts for the U.S. The economic growth comes. They believe that if trade disputes intensify and a global trade war breaks out, workers' portfolios and employment opportunities may be put at risk. The great risk lies in whether President Trump’s first round of strikes in tariff conflicts will trigger retaliation from other economies, leading to out-of-control conflicts and damaging investors and business executives’ confidence in the economy and the market.


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