Well-known China expert Gordon Chang has confirmed President Donald Trump is correct when he suggests tariffs are part of the solution of America's business dealing with China.
"In 2018, Trump imposed additional tariffs on China and analysts warned that prices in America would rise. Smart people in America forgot that China had an incentive to effectively pay the tariffs: The Chinese government and exporters absorbed 75% to 81% of the cost of the additional levies. They did so primarily through the government increasing export and other subsidies and factories accepting lower profit margins."
Trade expert Alan Tonelson said those Trump tariffs "Were barely noticed by U.S. businesses or consumers. They certainly did not raise inflation, and they certainly did not cut growth."
China right now is lobbying against any more tariffs, but Chang said ultimately the communist regime will have to pay.
"This is a contest that the United States cannot lose. In short, trade-surplus countries, such as China, cannot prevail over trade-deficit ones, such as America. Last year, America's merchandise trade deficit with China was $279.4 billion," Chang noted.
The Wall Street Journal reports low prices have pushed many factories in China 'to the brink.
High American tariffs will encourage factories to move out of China.
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