Effects of U.S.-China Trade War on U.S. Economy Varied, says WSJ, but Will Impact Flooring Country of Origin
New York, NY, January 13, 2020-Analysis of the U.S. economy reveals a toll as a result of the Trump administration’s tariff war with China, though not a significant one, reports the Wall Street Journal in Trade War With China Took Toll on U.S., but Not Big One. The article does emphasize that it may take years for the full effects of the trade war to be revealed.
The article points out that, “While Mr. Trump frequently claimed China would pay the tariffs, they have been paid by U.S. importers.
“Farmers took a big hit. Importers of auto parts, furniture and machinery choked down punishing tariffs. Investment between the world’s two largest economies dropped.
“Much of the U.S. economy is largely unscathed by two turbulent years of trade war with China, economic indicators show. Yet economic growth is trending near 2% in 2019, well short of the Trump administration’s goal of 3%.
“The U.S. and China are preparing to sign a first-stage trade accord on Wednesday, easing trade tensions and making the tariffs worth it, in the administration’s view…At the same time, most Chinese imports are still subject to U.S. tariffs, and many trade issues remain the subject of sharp disagreement.
“The trade deficit in goods also fell, one of the Trump administration’s goals of the policy, but only by $60 billion. In the 12 months through November, that deficit remained at about $360 billion.”
Ultimately, Trump’s goal of strengthening U.S. manufacturing may be, at least in part, successful. In December, China-based GreenView Floors announced that it would invest $26 million to establish production of vinyl and laminate flooring in Adairsville, Georgia, and at Domotex 2020, which took place in Hannover, Germany last week, there was a good deal of discussion about increased investment of rigid core flooring on U.S. soil.