Each U.S. presidential election garners global attention because each president's policies and directions differ. They often disclose their policies during campaign speeches to attract voters' attention and garner more support. Of course, these disclosures are not promises, and even if they are, there's no obligation to fulfill them.
In the recent election, Donald Trump, one of the hot candidates, promised in a public speech that if elected, he would increase trade tariffs on China. This is a tangible benefit for some domestic U.S. businesses as reduced competition is akin to indirect monopolization. However, it's not necessarily good for every American business.
First and foremost, many U.S. businesses are multinational or have international operations, and increasing tariffs on China would also increase their costs and affect profits. During Trump's previous term, he already significantly increased tariffs on China, and this time he has pledged to raise the existing 25% tariff to 60%.
Goldman Sachs strongly opposes this policy of Trump's. Of course, Goldman Sachs's dissatisfaction does not stem from a stance supportive of China but from an American perspective. While increasing tariffs can indeed strike at Chinese businesses and goods, it also harms the United States itself. Constructing tariff barriers impedes U.S. economic development and exacerbates inflation.
Goldman Sachs analyst and senior economist Ronnie Walker stated that increasing tariffs can indeed directly boost U.S. revenue, particularly the government's revenue, with a 1% increase in tariffs leading to a $30 billion increase in revenue. However, this revenue increment will reflect in higher prices, even affecting residents' incomes and expenditures, leading to more negative impacts.
Regarding the U.S. government's and particularly Trump's anti-China policies, Chinese Foreign Ministry spokesperson Wang Wenbin has repeatedly responded at press briefings. He said: The election is a matter of U.S. domestic politics, and China has no intention of interfering. China-U.S. trade should be mutually beneficial rather than a zero-sum game. Tariff and trade wars are not beneficial to China, the U.S., or the world.
