The standard trade world seemed to be coming to an end during the Liberation Day debacle, yet the US moved away from its strongest tariff rhetoric, and the world seemed to adapt to a higher-tariff environment. The worst tariff policies were not implemented, yet many policy effects take time to take effect. Firsm can adjust pricing, reduce profit margins, hold-off prcie increases, yet many responses are temporary. Goods shipments increased, but now both importers and exporters will have to normalize in a world with a higher tariff. For Chinese manufacturers, this will mean tighter margins, but it will also likely lead to a shake-up of firms and industry-wide considerations. This will be a global effect.
No comments:
Post a Comment