Tuesday, August 6, 2019

China imports

You cannot always believe the experts. The US has been increasing the tariffs on goods from China and this was supposed to raise prices on these good since the companies would just pass on the tax to the customer. The news was filled with stories of doom and gloom. In reality only 20% of consumer goods are imported and only 17% of those come from China so overall this effects on 3.4% of consumer goods. Then China used currency manipulation to weaken the Juan and the price of many of these goods actually became cheaper. Will this be reported with the same enthusiasm? The US can purchase from many other countries and should do so until such time as China quits stealing intellectual property and adjusts their tariffs equal to ours.

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