March 24, 2019 — Donald Trump has postponed until April the supposed deadline for a conclusion to China-US trade negotiations. A good outcome for both sides would have China agree to better protect private property rights and to reduce the role of the state in its economy; the US agree to strengthen national saving and public investment; and both sides agree in the short-term to reverse their recent tariff increases and the resulting shrinkage of international markets. Unfortunately this deal is not likely to happen.
PBS: Would President Trump’s proposed tariffs on steel and aluminum imports help create more jobs in the United States, as he argues?
JF: The import tariffs are likely to create a few jobs specifically in the US firms that make steel and aluminum. The important point, however, is that such positive effects will be far outweighed by negative effects on other sectors.