b'32American Journal ofTransportation ajot.comThe tariff redux Tariffs are key again and an issue in the economic relationshipCHINA TRADE between the worlds two largest economic powers. 2024By George Lauriat, AJOTe lectIons andt arIFFs :as a trade tool.It is probably an understatementBack in 2018 economists from the to say that the relations between theFederalReserveBankofNew York US and China are strained. And withtookissuewithTrumpsassertation theUSelectioncycleunderway,thattariffswouldnarrowthetrade hyperbole is the currency de jour fordeficit and said it would reduce both exchangesbetweentheworldstwoUSimportsandexportswithlittle largest economic powers.change in the deficit. From the global publics perspective,Anotherstudyin2019bythe thereseemstobeveryfewthingsNationalBureauofEconomic that Washington and Beijing see eye- Researchfoundthatthetariffshad to-eyeon,whetheritconcernsthelittle impact on the Chinese exporters Russia-Ukraine War, the South Chinaand the US importers absorbed and, Sea, Taiwan, or Trade. in most cases, passed on, the higher And for those engaged in commerceimport costs to the US consumer. betweenthetwosuperpowers,theThe National Retail Federation (NRF), question of the moment is which USintheirpositionstatement,summarized presidential candidate, Vice Presidentthe problem with weaponizing tariffsas KamalaHarrisorformerPresidenttariffs are punishing U.S. consumers,The CHIPs Act is aimed in both curbing US exports of strategic goods while encouraging more DonaldTrump,wouldbebestfor(REDUXcontinued on page 34) semiconductor plants to be built in the US. trade? Itsadifficultchoiceasboth candidatesandindeedbothparties have adopted a stance that advocates a decoupling of trade between the US and China. Given the current state of affairs betweentheUSandChina,itisnt surprisingtariffsonceagainhave becomeakeytopiconthe2024 presidential campaign trail.FormerPresidentTrump,whoGUANGZHOU PORT GROUPonce called himself the Tariff Man, iscreditedwithstartingthecurrent trade war with China, when in JanuaryTHE FASTEST GROWING PORT IN SOUTH CHINAof 2018 he began setting tariffs and othertradebarriersonChinato address unfair trade practices. 6TH LARGEST PORT IN THE WORLD WITH President Trumps principal complaint was the disparity in Chinese imports25.4 MILLION TEUS IN 2023toUSexportsandtheresulting mammoth trade deficit. For example, in2018ChinaexportstotheUSPORT OF NANSHA (GUANGZHOU PORT GROUP)were over $538 billion compared to Chinas imports of US goods of justNew On Dock Rail (connecting theNew Terminal (4th) Fully Automatedover$120billion.InhisfirsttermHinterlands + Europe) Open 24/7/365Trumpaspresidentimposed$250New Cold and Dry Warehousing16+ Berths, 70+ Cranes and Deep billion in tariffs on China. And back in February, candidate Trump reiteratedFacilities with Air-Sea + Rail EnablingWaterthe same views and stated he wouldEcommerce Shippers Reduce cost + time by utilizing a Port imposetariffsof60%orhigheronthats closer to your Vendors: Nansha!Chinese imports.To a large degree, the Democrats agree with Trumps overall assessment of Chinas exports to the US, although they have been a little more select in their targeting. The CHIPs and Science ActwasaimedinbothcurbingUS exports of strategic goods (i.e. blocking thesaleofadvancedchipsandchip making machines to China, Russia and otheradversaries)whileencouraging more semiconductor plants to be built in the US. It is a narrative that fits well with the nearshoring, friend-shoring or China plus 1, 2 or 3 trend in sourcing.InMay,thethencandidate President Biden said, Im announcing today:25%tariffonChinesesteel andaluminumproducts.Andwell counter Chinas overcapacity in these industries. And were making major investmentsinclean Americansteel andaluminumcleanAmerican steel and aluminum. Its a big deal. S.CHINA PORT WITH N.AMERICA AND WhileitisclearthatChinasEU/UK REPRESENTATIONmanufacturingsurplus(asurplusin part because of a decline in Chinese consumer spending) is again turningFOR MORE INFORMATION, VISIT US ATPORTOFNANSHA.COMinto exports to help lift the economy, it is debatable how effective tariffs are'