Following the announcement of tariffs between the United States and China, the concern over a trade war looms. Francis Ahking, University of Connecticut Associate Professor of Economics, said a trade war between the United States and China would be “disastrous.”
“We should look at the Great Depression when everyone tried to protect their own markets with tariffs, and it led to a World War disaster,” Ahking said. “If there is a trade war between the US and China, it would be disastrous not only because they are the two largest economic nations, but there would be consequences for the rest of the world.”
Ahking’s concerns come after China threatened retaliation against the United States in response to President Trump’s tariff plan against the Chinese, he said.
On CBS’ “Face the Nation” this past Sunday, United States Treasury Secretary Steve Mnuchin said the tariffs would not have a “meaningful impact on the economy.” In regards to a trade war, Mnuchin said it “could happen” but he did not anticipate it. trump-seeks-to-ease-fears-about-trade-war-with-china
Going forward, Ahking expressed concern that President Trump’s plans to bring back manufacturing jobs to the United States would never come to fruition.
“There is no way that what President Trump wants is going to happen,” Ahking said. “We are never, ever going to bring back manufacturing (back) to the United States – it’s not going to happen. We lost the comparative advantage which is what President Trump is unhappy about. In the way that the trade is set up, especially with China.”
Luke Hajdasz is a campus correspondent for The Daily Campus. He can be reached via email at firstname.lastname@example.org.