Tariff Delay: US dithering on Chinese goods
The trade war between the United States and China has been long, and it has been contentious. As of late 2019, the two countries have implemented tariffs on each other in a bid to gain leverage in negotiations. Recently, however, the United States has proposed a delay to the tariffs scheduled to go into effect on certain Chinese goods, citing economic considerations and a need to avoid consumer shock and disruption in the market.
On the one hand, delaying the tariffs on certain Chinese goods could provide economic relief to businesses and consumers in the United States. Tariffs can put a strain on companies’ balance sheets, and can lead to higher costs to consumers who purchase their goods. If the tariffs are delayed, then businesses and consumers may benefit from the lower costs and reduced risk associated with them.
But on the other hand, the tariff delay could have a long-term detrimental effect on the US economy. For one thing, pushing back the tariffs could weaken the US’s bargaining position in trade negotiations with China. If the US does not show a willingness to follow through on its threatened tariffs when the time comes, it could signal to China that the US is not serious about protecting its economic interests in the long run. This could undermine not only the US’s relationship with China, but also the long-term prospects for a healthy and prosperous bilateral relationship.
Moreover, the delay of the tariffs could allow Chinese companies to continue to engage in unfair trade practices with regard to intellectual property, labor rights, and other important aspects of trade. This could give China an unfair advantage over US companies, as Chinese companies would be able to continue to benefit from certain trade practices that the US opposes.
It is also worth considering the potential impact of the tariff delay on US businesses engaged in global trade. Domestic businesses could find themselves at a disadvantage, relative to Chinese companies that may be able to more freely trade with the US and other countries due to the delay of the tariffs. This could lead to reduced market share and profits for US companies, while Chinese companies benefit from reduced tariffs.
Overall, the US decision to delay the tariffs on Chinese goods is a complex one with both potential benefits and drawbacks. On the one hand, the delay could provide economic relief for US businesses and consumers in the short term, while on the other hand, it could weaken the US’s bargaining position in negotiations with China and unfairly benefit Chinese companies. Moreover, domestic businesses could find themselves at a disadvantage, relative to foreign competitors, due to the tariff delay. Ultimately, the US must weigh the pros and cons of the tariff delay and decide what is best for the US economy in the long run.
