1.) The US accuses China of state-sponsored subsidization of goods, which buoy Chinese exports and harm American manufacturers (despite the help to American consumers).

2.) The US imposes external price increases through tariffs on Chinese goods, causing the price of said goods to increase for American consumers (and possibly helping American manufacturers).

3.) China retaliates by imposing external price increases through tariffs on American goods, hurting Chinese consumers and American manufacturers.

- Halftime score:
a) Chinese manufacturers: some sectors benefit by removal of low-cost competition; some sectors are hurt on exports
b) Chinese consumers: hurt by Chinese tariffs
c) American manufacturers: some sectors benefit by removal of low-cost competition; some sectors (farming) are hurt on exports
d) American consumers: hurt by American and Chinese tariffs

4. To ameliorate (c), US gov't subsidizes those sectors hurt by the trade war. Yes, this is exactly what we accuse China of doing, resulting in the start of the trade war!

- Final score:
a) Chinese manufacturers: some sectors benefit by removal of low-cost competition; some sectors are hurt on exports
b) Chinese consumers: hurt by Chinese tariffs
c) American manufacturers: some sectors benefit by removal of low-cost competition; some sectors (farming) go back to same state as pre-trade war thanks to subsidies
d) American consumers: hurt by American and Chinese tariffs as well as additional corporate welfare from gov't

Protectionism is not fiscal conservatism.

[Post edited by VisorBoy Hokie at 05/14/2019 6:50PM]