Tariffs could reduce US. output through a few channels.One possibilty is that tariff may be passed on to producers and consumers in the form of higher prices. Tariffs can raise the cost of parts and materials,which would raise the price of goods using those inputs and may reduce the private sector output. This would result in lower incomes for both, owners of capital and workers.

US. has upped the ante in a rapidly escalating trade war with China, although China is still an export-led economy,and the American consumer is the largest customer.The US. depends heavily on China for providing the low-cost goods that enable income-constrained American consumers to make ends meet. The US. also depends on China to support its own exports.And for sure,the US. depends on China to provide funding for its budget deficits.

Questions:

1-what are your thoughts of the possibility that further disputes with China will not be settled with tariffs but with multilateral trade deals?

2-Do you think it is possible we may see something like the Trans-Pacific-Partnership deal again under a Biden administration?