You said: US lowered tariff from 245% to 30% on China goods. Whereas China lower tariff on US goods from 125% to 10%.
The tariff cuts would greatly benefit global and transpacific logistics in the short to medium term, stimulating trade, reducing costs, and boosting freight movement. However, logistics players must balance the growth with infrastructure planning, capacity management, and strategic diversification to avoid new risks from overdependence.
There are two possible outcomes: potential benefits (good) or potential drawbacks (bad) for the global economy
Potential Benefits (Good) for the Global Economy:
- Reduced Trade Costs
- Improved Supply Chains
- Economic Growth
- Reduced Inflationary Pressures
- Geopolitical Stability
Potential Drawbacks (Bad) for the Global Economy:
- Uneven Competitive Advantages
- Job Displacement in Protected Sectors
- Revenue Loss for Governments
- Dependency Risks
- Third-Country Exclusion
Key Considerations:
Net Effect Depends on Implementation: If paired with non-tariff barriers (e.g., subsidies, export controls), benefits may be limited.
Long-Term vs. Short-Term: Immediate consumer gains could clash with strategic industries’ decline.
Global Spillover: Smaller economies tied to U.S.-China trade (e.g., raw material suppliers) could face indirect impacts.