Why Free Trade Trumps Fair TradeSubmitted by Silverlight Asset Management, LLC on May 17th, 2018
Uncertainty over the trade relationship between China and the U.S. has periodically roiled markets this year. This week, the topic is again front and center as top Chinese economic officials make their way to Washington to convene talks.
Trade tensions recently escalated when President Trump threatened to impose tariffs on as much as $150 billion in Chinese imports. That move was a retaliatory measure after years of unfair trade practices by Beijing, the most prominent being theft of American intellectual property.
While fair trade should always be a goal, tit for tat tariff measures are not the answer. Such actions drive up input costs and slow economic growth. It's been tried before. Everyone loses.
The video brief below explains why free trade rests on common sense principles and describes how policy risk could impact the market.
* Originally published by Forbes. Reprinted with permission.
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