With his decision to impose $60 billion in tariffs on Chinese products this week, the president appears to be underestimating the mutually beneficial relationship we share with China.
Why it matters: The United States imports roughly half a trillion dollars in goods from China, including clothing, shoes, electronics, furniture, and household appliances. Those imports help improve the lives of many Americans, particularly those in low-income households who benefit from lower prices on everyday goods.
Two more key ways we benefit from trade with China
- China’s growing middle class represents a vibrant market for America’s exports, and US-owned affiliate companies in China sell hundreds of billions of dollars’ worth of goods and services each year.
- China’s ownership of $1 trillion in US Treasury bills keeps interest rates low, which translates to meaningful reductions in mortgage payments for US homeowners and tens of billions of dollars in savings for the federal government.