Big Technology Podcast Trade War Scorecard: What's Changing, Who's Winning, What's Next — With Ryan Petersen
Tariffs Fluctuated Cargo Volumes
- Tariffs on Chinese imports have been fluctuating drastically, initially hitting 145% then easing to about 30%.
- This caused a temporary 60% drop in cargo volume, followed by an 80% rebound above pre-tariff levels.
Why Tariffs Are Backfiring and Sending Manufacturing Out of the US
Tariffs intended to boost American manufacturing by penalizing imports, especially from China, are having the opposite effect. Companies manufacturing in the US often import components and face higher duties, making exports less competitive and pushing them to relocate to countries like Mexico that avoid these tariffs.
Ryan Petersen explains how tariffs raise costs and uncertainty, discouraging new investments in the US while increasing complexity in global supply chains. He also discusses currency manipulation, industrial policies, and environmental regulation disparities as factors giving foreign manufacturers an edge.
Rather than increasing domestic manufacturing, the tariffs are causing firms to move production out of China but also out of the US, hindering the Trump administration's goals. Clarity and multi-year planning on tariff policies would help businesses make better decisions.
China’s Trade Advantage Factors
- China's manufacturing dominance and currency manipulation are key U.S. concerns in trade imbalances.
- Environmental, labor, and regulatory disparities further tilt competitive advantages towards China.