Why the US will never win a China trade war [CNN]
Alcoa Corporation (AA)
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Source: CNN
Why the US would never win a trade war with China Over the last several decades, lower tariffs and relaxed trade barriers strengthened global supply chains and fueled a major increase in global trade. In fact, the average rate of tariffs on imports by World Trade Organization members declined from slightly more than 12.74% in 1996 to 8.8% in 2016. Global trade went from $5 trillion in 1996 to $19 trillion in 2013. We are now moving backward. In its efforts to achieve what it believes to be fair trade, the United States has started trade disputes with several different economies. Its conflict with China is by far the most intense, resulting in a series of additional tariffs. Some people believe that because America is the net buyer and China is the net seller in their trade relationship, China will lose the trade war and ultimately surrender. I believe that's wrong. Tariffs will hurt both countries. Many tariffed products can't easily be substituted, so they will continue to be purchas
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