Paul Krugman:”yesterday Financial Times There was a pretty good article on stakes pointing out that the US exports to China “focus on agriculture.” ft I said these products have “low added value,” but I don’t know if that’s true or not – agriculture in the US is very productive and highly capital-intensive. But what’s important in the trade war is the fact that China buys soybeans from Brazil rather than Iowa, and it’s fairly easy to find other agricultural suppliers. ”
“In contrast, the US will have a hard time replacing many of the goods it imports from China. Plus, many of the goods it purchases from China are industrial inputs rather than consumer goods.”
“So Trump launched a trade war that disrupts our own supply chains. Do you remember Covid and its direct aftermath? Do you remember how the economy and inflation-fueled shortages are spreading? At the time, it was causing particularly significant damages that Trump in the manufacturing sector claims to bring back.”
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