For years, economists have complained that China was artificially holding down the value of the renminbi in relationship to the dollar in order to make Chinese goods cheaper to American consumers and U. S. exports more expensive for Chinese consumers. This has contributed to the huge trade deficit and export of American jobs and investments to China.
Many talks have been held, but little seems to be accomplished. Hasn’t the time come for a couple of American Senators to suggest a flat 10% import duty on imports from China?
Consistently (if not correctly) a supporter of “free trade”, it is almost unimaginable that the Watchdog would be making such a suggestion. Given Chinese intransigence, albeit for their good reason of facilitating their own economic development, the U. S. needs to be able to protect its own interest.
“The threat can be mightier than its execution.” Import duties would have such dire potential consequences for the Chinese that it should strengthen our bargaining position and at long last lead to long required correction in the comparative values of the dollar and renminbi.
10% is nothing. 1000% would be more like it.