A recent analysis of data on corporate behavior since the Trade War points to yet another reason why continued use of tariffs to bring about change in Chinese behavior is ill advised.

More specifically, multinational corporations, which were expected to "follow the flag" and move their operations when "ordered out" of China have not and will not move. In fact, less than 1% have done so.



Let’s consider other measures of success for tariffs:

  1. On Balancing trade: Deficits soared to their highest level in over a decade.
  2. On bringing back jobs: US Job loss estimates range from about 177,000 to 245,000 jobs.
  3. On generating tariff revenue. The estimated $80 billion generated under the previous administration was paid for by the US consumer as the largest tax increase in decades. Increased costs exacerbate inflation