Page 24 - THE SOUTH CHINA BUSINESS JOURNAL
P. 24
C. TODAY
Trade War
to Reduce
US GDP by
US $1.6 Trillion
over the next 5 years
By US China Business Council
WASHINGTON, DC— As the Biden administration “What we’ve seen over the past few years is that raising
takes the reins of US trade policy, the question tariffs does little more than raise costs for American
of what to do with existing tariffs on Chinese goods families and shrink their opportunities,” said Craig
in the long term remains up in the air. According to Allen, President of the US-China Business Council. The
a new report from Oxford Economics and the US- report estimates the peak impact of the trade war to
China Business Council, the answer is clear—even be 245,000 American jobs lost due to tit-for-tat tariff
a moderate reduction in tariffs would lead to an actions since 2018.
additional $160 billion in real GDP and 145,000
additional US jobs by 2025. “Some in Washington are intent on severing ties with
China, but this report shows that doing so would have
Failing to put an end to the festering trade war—or staggering repercussions for the United States, costing
worse, pursuing significant decoupling with China— billions of dollars in growth in the process,” Allen said.
would cause both short-term shocks to company “If we don’t find ways outside of self-defeating tariff
supply chains and productivity and long-term damage measures to address differences with China, American
to US GDP growth and competitiveness. The report workers will continue to suffer.”
estimates that if the trade war continues to escalate,
US real GDP growth could be reduced by $1.6 trillion Founded in 1973, USCBC has provided information,
over the next 5 years. advisory, advocacy, and program services to its
members for over four decades. It maintains offices in
Washington, DC, Beijing, and Shanghai.
21 AMCHAM SOUTH CHINA
Trade War
to Reduce
US GDP by
US $1.6 Trillion
over the next 5 years
By US China Business Council
WASHINGTON, DC— As the Biden administration “What we’ve seen over the past few years is that raising
takes the reins of US trade policy, the question tariffs does little more than raise costs for American
of what to do with existing tariffs on Chinese goods families and shrink their opportunities,” said Craig
in the long term remains up in the air. According to Allen, President of the US-China Business Council. The
a new report from Oxford Economics and the US- report estimates the peak impact of the trade war to
China Business Council, the answer is clear—even be 245,000 American jobs lost due to tit-for-tat tariff
a moderate reduction in tariffs would lead to an actions since 2018.
additional $160 billion in real GDP and 145,000
additional US jobs by 2025. “Some in Washington are intent on severing ties with
China, but this report shows that doing so would have
Failing to put an end to the festering trade war—or staggering repercussions for the United States, costing
worse, pursuing significant decoupling with China— billions of dollars in growth in the process,” Allen said.
would cause both short-term shocks to company “If we don’t find ways outside of self-defeating tariff
supply chains and productivity and long-term damage measures to address differences with China, American
to US GDP growth and competitiveness. The report workers will continue to suffer.”
estimates that if the trade war continues to escalate,
US real GDP growth could be reduced by $1.6 trillion Founded in 1973, USCBC has provided information,
over the next 5 years. advisory, advocacy, and program services to its
members for over four decades. It maintains offices in
Washington, DC, Beijing, and Shanghai.
21 AMCHAM SOUTH CHINA
