Friday, December 28, 2018

Trade with China

The US has an import tax on cars from China of 2.5% while China charges 25% or ten times more on US exports to China. One of the result can be seen in total sales. The U.S. imported 58,000 passenger cars from China worth $1.5 billion last year, according to the International Trade Administration, a federal agency within the Department of Commerce. That was a fraction of the number of cars the U.S. exported to China: 267,000 passenger vehicles worth $9.9 billion China has 4 times as many people. Overall China sells the US $420 billion dollars per year more than they buy from the US resulting in a trade imbalance. Would China be happy to get rid of all import taxes? Would it help the US if all import taxes were removed?

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