Making China an enemy is a sure way to isolate America
With the threat of additional tariffs on $325 billion of Chinese imports, a wider swath of industries in the U.S. will begin to feel the pain — as will consumers.
"In the best of circumstances, it may take years to renegotiate contracts again," said Hamid Mohtadi, a professor of economics at the University of Wisconsin at Milwaukee. "Other agricultural products will not fare much better." And China is now even less likely to put all its eggs in one basket as it previously did with the U.S.
The Trump administration’s impulse to wage trade wars with major economic powers - steel, aluminum, autos with Europe and Japan, and essentially every product under the sun with China - are dimming the prospect of what promised to be a lengthy American economic renaissance.
In the coming days, the president has a significant opportunity to calm American markets and ensure that the U.S. economy continues to prosper. He can call off an escalating trade war that inflates consumer prices and endangers job gains.
Free and fair trade with China, not more tariffs, is the real path to prosperity.