A trade war with China would inflict far more damage on the American economy than could be recouped from tariffs and other protectionist levies.
That’s the problem with the Trump administration’s unilateral action, taken under Section 301 of the Trade Act of 1974, to levy punitive tariffs punitive tariffs on up to $50 billion of goods from China. Already that decision has prompted a retaliatory response from Beijing that targets 128 American products ranging from soybeans, wine, and various fruits to steel pipes and ethanol. These Chinese taxes on American exports, and higher prices from U.S. taxes on imports, could have wide-reaching negative impacts for the U.S. economy.
