> (a) does not harm China, as intended, as they are still the only viable place to purchase these items, yet (b) actively harms business in the United States, as we are paying the additional cost ourselves.
There's an important qualification: that's probably only true in the short or medium term. I believe the goal is that the higher cost would produce economic space for competitors to enter the market.
Ironically, I believe the WTO rules allow for countries classified as "developing" (like China) to maintain high tariffs to develop local industry for precisely this reason.
There's an important qualification: that's probably only true in the short or medium term. I believe the goal is that the higher cost would produce economic space for competitors to enter the market.
Ironically, I believe the WTO rules allow for countries classified as "developing" (like China) to maintain high tariffs to develop local industry for precisely this reason.