Most people in Washington now understand that there are bigger issues at play here than simply tariffs. The US and China are locked in a competition to decide which country will dominate the 21st century.
What will happen if we actually increase the tariffs on all $575 billion of Chinese imports to the US to 25 percent? The American economy, followed by much of the rest of the world, will begin to disengage from China’s economy.
Companies will flee China for other countries — including our own — where it is cheaper to conduct business. Not only will American manufacturing continue its renaissance, our allies in the Asia-Pacific region, such as the Philippines, South Korea, Taiwan and India, will also benefit.
Yes, the American consumer will bear some of the cost of tariffs on Chinese goods. But China’s pain will be far more acute.