The national pork producers council said in late

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war, particularly if Trump follows through on threats against China and Mexico. The National Pork Producers Council said in late March that its members exported $1.1 billion of pork to China last year, making it the third - largest market. In addi- tion to pork, the new tariffs from the Chinese Government would include US exports of apples, oranges, almonds, pineapples, grapes, watermelons, cranberries, strawberries, raspberries, cherries and a host of other items. 9 Many US firms view participation in China s market as critical to their global competitiveness. The US imports of lower cost goods from China greatly benefit the US consumers. The US firms that use China as the final point of as- sembly for their products, or use Chinese made inputs for production in the US, are able to lower the costs of their products. Most US imports from China are not a threat to the US national security. These imports include cheap Chinese products such as apparel, toys, furniture, and consumer electronics upon which lower income Americans rely. They consist of more than 40 per cent of China s exports to the US. This also applies to most US exports to China, including copper, pulpwood, plastic materials, logs and lumber and medical equipment. Together, these products add up to 12 percent of the total US exports to China. The USA can and should continue to buy these products from China and vice - versa. Both countries could source these goods elsewhere but would face higher prices for doing so. 10 Many of the targeted products are consumer goods such as televisions and dishwashers. When a large country such as the US imposes tariffs, the pain is shared between consumers who pay higher prices and producing firms abroad who 9. Damian Paletta, Trade War Escalates as China Says it Will Impose Tariffs on 128 US Exports, Including Pork and Fruit ”, Washington Post, April 1, 2018, available at: https:// - war - escalates - as - china - vows - to - impose - tariffs - on - 128 - u - s - exports - including - pork - and - fruit/? utm_term=.b2437a9c1f71 10.Daniel Rosen, China - Trump Administration: Is a Trade War the Only Option? An Alternative Approach to Taking On China ”, Foreign Affairs, March 20, 2018, https:// - 03 - 20/trade - war - only - option
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US - CHINA Trade War: Analyses of Deeper Nuances and Wider Implications 14 have to absorb lower profit margins. Tariffs are a very poor instrument for punish- ing China for any unfair trading practices. Some of the cost will be borne by: - American consumers. American firms that either produce in China or use intermediate products from China. Firms in countries (mostly US allies) that supply China. Chinese firms (mostly private ones). The same analysis can be applied to Chinese retaliatory tariffs. Chinese consumers will pay more for soybeans and products like pork that rely on soybeans. Chinese airlines will be less productive if they cannot buy American aircraft. It happens that these US exports have mostly domestic content, so that most of the pain felt by producers will be within the US. There are some sectors in which China
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