I have never heard of Mary Lovely of Syracuse University but she offers some welcomed rational thinking in this op ed in today’s New York Times. I recently estimated that more than 50 percent of China’s exports to the United States were not manufactured by Chinese entities. But she estimates that 60 percent of China’s exports to the U.S. are produced at factories owned by non-Chinese companies. Moreover, she notes that many of these factories make products that have been customized for the U.S. market.
So the point she is making, as I have been also seeking to make, is that tariffs are going to hurt American companies that make things in China for the United States and also hurt U.S. consumers who have to pay higher prices for the goods that were customized for them.
In short, President Trump’s proposed tariffs won’t really cripple the Chinese, as he seems to think. The heart of the Chinese economy will be somewhat insulated.
Thanks to Mary Little of Syracuse.
