U.S. ports that are used to handle billions and billions of dollars trading business over the year are now on the verge of becoming the first victims of the global trade war started by the country’s President Donald Trump. It all started when the U.S. ditched the nuclear deal with Iran and decided to reimpose sanctions on various countries. Now, that decision has come back to bite the economy of the U.S. as the port managers are bracing themselves for the multiple canceled shipments and lost jobs. The White House has threatened to impose higher duties on $200 billion Chinese good and this will negatively affect the economy of the country as well as on the jobs of port workers.
The Busiest Gateway Will Feel The Pain First
The port of Los Angeles and Long Beach are the busiest trading ports of the U.S. and thus will be the first ones to feel the pain of global trade war. In 2017, Southern California port handled $173 billion in Chinese import, which is about a third of the total goods shipped from China to the United States. Furthermore, more than 300 official port will face problems if the widening of the tariff is continued any further as more than $500 billion worth of goods arrived from China last year. In addition, more than $130 billions of goods flow through these ports to China every year, producing trade deficit of more than $300 billion.
CNBC reported that several economists are considering that Trump underestimated and misread the impact of global trade imbalance and he thought it will not hurt the U.S. economy. However, the trade deficit with China has turned into an eye-opener for Trump and his supporters. In addition, Trump declared that he is willing to slap tariffs on Chinese-made product shipped to the U.S. This may bring layoffs and would be detrimental to jobs at the port and to the state and national economy.
The post US Ports Will Take First Blow Owing To Trump’s Trade War appeared first on OWLT Market.
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