The proposed 45% tariff on Chinese goods
Donald Trump’s stand on Chinese goods is well known. He blames the country for all American woes. From stated sponsored hacking, climate change to undermining of United States competitiveness.
Since Donald Trump was elected president, he has stopped blaming China for the American problems. The only action he has taken was to post a video on twitter of his grandchild reciting a poem in Mandarin. This poem has become a great hit in China.
https://www.youtube.com/watch?v=Y0TDHWMFkGM
Possibilities
If Chinese goods import gets blocked, prices of goods will rise exponentially. This will compromise consumption. This will have a negative effect on economic growth. This may result to US loosing manufacturing jobs to Bangladesh and Vietnam which Keyu Jin says have cheaper labour costs than China.
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China is the largest spender on US treasuries. This fact is mostly assumed. The money generated is used to finance investments and consumption.
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