Us Economy, Donald Trump, Trade Wars

Us Economy, Donald Trump

Trump’s trade war does little good for US industry | Malay Mail

Trump’s trade war does little good for US industry | Malay Mail

22/10/2020 7:34:00 PM

Trump’s trade war does little good for US industry | Malay Mail

WASHINGTON, Oct 22 — When President Donald Trump visited a Whirlpool factory in Ohio in August, he boasted that his trade policy had led to the creation of about 200 jobs for the appliance manufacturer at the plant. But in slapping tariffs on appliances and components imported from China in...

Thursday, 22 Oct 2020 10:41 AM MYTTrump has made reviving manufacturing a key plank of his pitch to voters ahead of his November 3 election showdown with Joe Biden, but data show his administration has a mixed record. — Reuters picWASHINGTON, Oct 22 — When President Donald Trump visited a Whirlpool factory in Ohio in August, he boasted that his trade policy had led to the creation of about 200 jobs for the appliance manufacturer at the plant.

Sokong belanjawan bukan sebab 'seronok-seronok', Azmin beritahu Anwar Dr Mahathir: Pakatan legitimised Muhyiddin administration by letting Budget 2021 survive | Malay Mail Petronas posts RM3.4bil net loss in Q3

But in slapping tariffs on appliances and components imported from China in response to Whirlpool’s pleas, the Republican incumbent ultimately hurt American consumers, as prices for washing machines and dryers soared.The example underscores the double-edged impact of the US leader’s aggressive trade tactics, which have produced landmark deals like the USMCA pact with Canada and Mexico and a partial truce with China, but have had adverse effects on everyday Americans and the economy overall.

“There have been some successes, but if you have to assess in the whole, the US is in a worse position with respect to trade than it was when Donald Trump took office,” said Edward Alden, a trade specialist with the Council on Foreign Relations.Geoffrey Gertz of the Brookings Institution agreed, saying he sees no overall gains for American workers from Trump’s trade policy.

He pointed to improvements in “a few very small, narrow areas” such as the steel and aluminium industries, but noted the hostile responses Trump’s policies earned from abroad.“Many other countries put retaliatory tariffs on the US, and on many US agricultural exports,” Gertz said.

Consumers, companies pay the priceTrump has made reviving manufacturing a key plank of his pitch to voters ahead of his November 3 election showdown with Joe Biden, but data show his administration has a mixed record.Trump created more manufacturing jobs in the first three years of his term than during the last three of his Democratic predecessor Barack Obama, according to the Labor Department.

He also inked the USMCA agreement, which includes provisions boosting US employment by requiring that nearly half of North American auto production come from higher paid workers, as well as tougher labour clauses that obliged Mexico to reform its laws.

While those measures could eventually bring car factories back to the United States, it hasn’t exactly happened so far.The manufacturing sector now accounts for less than 10 per cent of US GDP, and Gregory Daco, chief economist at Oxford Economics, estimates the president’s protectionist policies have cost the US economy half a percentage point in growth over two years.

Tolak undi belah bahagi supaya boleh kaji perubahan belanjawan, kata Anwar | The Malaysian Insight Budget concessions shows PN's desperation - Anwar Malaysia beli 12.8 juta dos vaksin Pfizer - Utusan Digital

“That’s a lot,” Daco said, considering that the average US growth rate is 2 per cent.While the trade deficit with economic rival China narrowed during the Trump presidency, the total deficit rose by 22.8 per cent between 2016 and 2019 — a sign that multinationals have in fact turned to other exporting countries.

Daco said the US shift to becoming a service economy along with the globalisation of supply chains is to blame for the struggles to revitalise domestic manufacturing.“Despite the president’s message aimed at making people believe China pays the tariffs on American imports, it is obvious that it is the consumers and companies which bear the burden,” he said.

Spurring debateTrump’s tariffs have caused revolts in some industries, including steel — the American Institute For International Steel sued over the levies two years ago in a case that is before the Supreme Court.The chief executive of a US steel producer who spoke to AFP on condition of anonymity said many steel plants that tried to reopen were too obsolete to survive, and quickly closed back down.

“Trade wars don’t help anyone, since both sides just dig in,” the executive said.Gertz pointed to agriculture as another example of what can happen when tariffs go awry.After agricultural commodity prices crashed in 2018, the government spent tens of billions of dollars to subsidise farmers but bankruptcies nonetheless jumped 20 per cent.

“That really hurt the US farming sector. The US responds to that with subsidies to the farming sector, trying to balance that out, and it ends up being a bit of a wash overall,” Gertz said.The “phase one” trade deal signed with China in January this year mandated that Beijing increase purchases of US farm goods.

Gertz said the biggest impact of Trump’s policies was giving the business world an unwelcome injection of uncertainty and fueling a 98 per cent decline in foreign direct investment between 2016 and 2019, according to the Commerce Department.“Nobody was ever quite sure about what Trump was going to announce next,” Gertz said. 

Covid-19: Compulsory testing for foreign workers starts Dec 1 Covid-19 (Nov 27): 1,109 new cases, 2 deaths Ahli Parlimen PKR kecewa diarah lulus Belanjawan 2021 | The Malaysian Insight

“That kind of uncertainty is very damaging for businesses. Firms are very reluctant to make investments operating under such policy uncertainty.” — AFP Read more: Malay Mail »

Malaysian singer-actor Alif Satar tests positive for Covid-19

The 30-year-old says that he had gone through several rounds of Covid-19 tests throughout his shoots, however the last one came back positive.

Bila babi memerintah

US seeks to sway Brazil on Chinese 5G with US$1b deal | Malay MailBRASÍLIA, Oct 21 ­— The United States promised Brazil US$1 billion (RM4.15 billion) in financing toward US imports yesterday, adding a carrot to its campaign to convince the country not to use China’s Huawei to develop its 5G network. The deal includes loans, guarantees and insurance to fund...

US dollar drifts as markets look for certainty on US stimulus | Malay MailTOKYO, Oct 22 — The US dollar treaded water against most major currencies today as US stimulus talks remained the focus for markets with trading buffeted over recent days by the extent of progress made on the potential size of the aid package. The dollar index was nearly flat against a basket of...

UK says trade talks with US are intensifying | Malay MailLONDON, Oct 21 — Britain and the United States are intensifying trade talks, trade minister Liz Truss said yesterday, announcing the start of a fifth round of negotiations focused on goods tariffs. Britain has put a trade deal with the United States at the top of its post-Brexit wish list, having...

US officials more optimistic on stimulus, timing unclear | Malay MailWASHINGTON, Oct 21 — Chances for approving a new spending package to support the US economy improved dramatically yesterday after the senior Democratic lawmaker said a bill is in the works and the top Senate Republican said he would bring it to a vote. Both sides said they made progress in talks...

Wall Street backs Intel’s US$9 billion sale of NAND unit to Hynix | Malay MailNEW YORK, Oct 20 — Intel Corp’s US$9 billion (RM37 billion) sale of its NAND memory chip unit will help the US chip giant focus on its core business in higher-margin processors, Wall Street analysts said today, after its deal with South Korea’s SK Hynix Inc. Intel, best known for making...

Former Mexican defence minister ordered held in US jail without bond | Malay MailLOS ANGELES, Oct 21 — Mexico's former defence minister, Salvador Cienfuegos, was ordered held in US custody without bail yesterday, pending his trial on drug trafficking charges in a case that could have far-reaching implications for US and Mexican anti-cartel strategy. A US magistrate judge also...