How the Current Trade War Is Affecting Catholic University Students
By Jack Murray
The United States is currently in the midst of a brutal trade war that has taken a toll on both the U.S. and Chinese economies. Back in January, Chinese economists worried that the stagnant growth in 2018 meant that the once explosive economy had finally begun to cool.
Two months later when the ongoing trade war began to heat up once again, President Trump ordered a 25% tariff on aluminum and a 10% tariff on steel.
These tariffs were heavily criticized by many economists in the U.S. and around the world.
Some economists warned of the precedent Trump was setting regarding free trade and feared the inevitable backlash it would have on American businesses. Concerns were raised by economists regarding the states that would be hit the hardest. The states that Trump would need to support in the upcoming 2020 election include Texas, South Carolina, and Kentucky.
Despite all of these warnings, President Trump has refused to back down in this trade war. But does he have good reasoning for doing so?
One of the first actions that Donald Trump took upon his entrance to the Oval Office was renegotiating the North American Free Trade Agreement (NAFTA), doing so based on his speculations that Mexico and Canada were not holding up their respective ends of the deal. Similar to the situation with China, economists warned our president about the potentially devastating effects of renegotiating a trade agreement.
Just two and a half years later, both the Mexican and Canadian economies are thriving and the United States saw no devastating long-term effects of this policy.
Earlier this week, nearly every single major news agency informed the American public of the new status regarding the Hong Kong protests. Though this all-too-familiar story has been developing for nearly a year, this week’s news headlines caught the attention of Americans more so than ever over the past twelve months.
NBC, CNN, and Fox News all showed their viewers the now-viral picture of the Hong Kong citizens holding up dozens of American Flags and a poster that read, “President Trump, Please Liberate Hong Kong.”
As far as many people think, President Donald Trump has refrained from supporting the cries for democracy in Hong Kong, which to some extent is true. While he has not indicated support towards military intervention in the tense situation, Donald Trump and his administration are hitting China where it hurts the most: their pockets.
Though it is far from the mainstream manner of showing support to Hong Kong, many believe that Trump’s refusal to back down is politically motivated to show support for Hong Kong.
Each day, we move a little bit closer to November 3rd, 2020. If the trade war continues to hurt American businesses, how long will Trump continue to impose tariffs on Chinese goods? How will Democrats use this to their advantage in the 2020 election?
How long can our economy last the effects of the trade war? How long can the global economy last the effects of the trade war?
With many families of Catholic University students starting to experience the negative effects of the trade war, this is a growing concern among many families regarding the affordability of tuition next semester.
“Because the University does not have a cap on tuition increases, I’m worried that an increasing cost will make it difficult for not only my family but the families of all students to pay for future semesters,” sophomore Philip Ahearn said.
Just how far can families make each dollar stretch?
