Summary: Tariffs on China could help the global economy by encouraging Chinese companies to move factories to other countries, which would reduce their reliance on exports. This shift could benefit developing nations and help improve U.S. manufacturing by lessening the impact of Chinese overproduction. Ultimately, tariffs may lead to a healthier trade balance and more sustainable economic practices worldwide.
This is not to claim that tariffs are ineffectual — they’re just a weaker policy tool than their proponents like to think. (View Highlight)
China’s government thus needs an additional incentive to shift its economic model. That incentive is tariffs. By stopping China from being able to use the rest of the world as the release valve for its overproduction, the U.S. and other countries can hasten the day of reckoning when Chinese companies find themselves unable to offload their products at any price. That reckoning will force the Chinese government to figure out how to cut back on production. (View Highlight)
Tariffs on China could speed up development across the Global South — and maybe even in the U.S. (View Highlight)
