By Joyce Yu
Philadelphia, PA–Bailout for industries impacted by tariffs would cost $39 billion, according to Chamber of Commerce’s analysis. This includes $12 billion in emergency aid recently approved by President Trump for farmers, and another $27 billion to other industries which range from $43 million for starch and glue producers up to $7.6 billion for auto, motorcycle and part manufacturers.
Opposing tariffs that President Donald Trump has slapped on trade with China and other countries, Neil Bradley, executive vice president and chief policy officer at Chamber of Commerce, said in a statement, “The best way to protect American industries from the damaging consequences of a trade war is to avoid entering into a trade war in the first place.” He added, “The administration’s focus should be expanding free trade and removing these harmful tariffs, not allocating taxpayer’s money to only marginally ease the suffering for some of the industries feeling the pain of the trade war.”
White House so far has no indications that similar aid packages will be extended to other industries, but there are signs that the trade friction between the EU and the US may ease. After a meeting with European Commission President Jean-Claude Juncker last week, Trump said both parties agreed “first of all, to work together towards zero tariffs, zero non-tariff barriers and zero subsidies for the non-auto industrial goods.” This is followed by comments of Larry Kudlow, President Trump’s chief economic adviser, on Sunday that the U.S. will “immediately” start negotiating with the European Union to forge trade agreements on farm and energy products. The latest movements had led some market watchers to believe that President Trump plans to extend his tit-for-tat tariff wars with China.
China, at the same time, is also moving to maintain its economic growth with foreign policies and financial stimulus. Currently on his trip to China, UK’s newly appointed foreign secretary Jeremy Hunt said China’s foreign Mr Wang had offered “to open discussions about a possible free trade deal done between Britain and China post-Brexit.” “That’s something we welcome, and we said we will explore,” Jeremy Hunt added.
In addition to deepening trade relations with other countries, China is also adopting a more vigorous fiscal policy to help tackle external uncertainties. During a cabinet meeting last week, Chinese Premier Li Keqiang said, “The proactive fiscal policy will become more active.” Premier Li further noted, China will keep liquidity ample and maintain appropriate total social financing under its prudent monetary policy, which will be neither too tight nor too loose.