The exchange of tariffs between the US and China have already had a negative effect on the latter’s economy, writes Liz Peek of The Hill. It is particularly vulnerable to these tariffs because it relies heavily on other countries buying its products. Already its currency, the yuan, lost 7% of its value, while the Shanghai Index of Chinese Stocks has declined by 20%. China’s economic growth is slowing while America’s is picking up. Key in the trade war is that the US relies on exports less, leaving it more protected. Investors are losing confidence in China, which the country will likely have to balance out by buying its own stocks.
The exchange of tariffs on imports between the US and China is likely going to backfire, believes Alex Shephard of the New Republic. The country’s economy is strong and large enough to withstand this pressure. Its leaders also don’t need to worry about their constituents’ complaints as much, unlike President Trump, who is already being criticized for the tariffs. The country will likely be able to hold out for a long time. Additionally, Trump’s strategy seems to be rooted in dominance and self-confidence without a clear goal in sight. A more strategic approach, with the involvement of allies, would have been better.