mauldineconomics.com / BY PATRICK WATSON / JULY 25, 2017
The first step to surviving a war is knowing which side you are on. But in a trade war, that’s not always easy.
Suppose the US imposed tariffs on steel imported from the European Union. Prices on goods made with that steel would probably rise, but this would affect you only to the extent you rely on those particular goods.
When the EU responded by slapping tariffs on items “Made in USA,” it would hurt you only if your livelihood depended on those export revenues.
Of course, we may be headed toward a wider trade war, which could cause more general price inflation, hurting everyone in some way—though I think it will be more targeted at first.
But one group is sure to win in a trade war because demand for their services will skyrocket.
Who are these lucky people?
They aren’t people at all. They’re robots.
Trade Talks Fizzle
If you monitor trade and logistics news like I do, the signs are everywhere. Last week, US and Chinese negotiators met in Washington to cap the 100-day dialogue that Presidents Trump and Xi promised at their April summit.
It didn’t go well, apparently.