TACO, Again! (China Edition)

Not that I’m complaining.

From SCMP via Bloomberg:

US and China are expected to extend their tariff truce by another three months, the South China Morning Post reported, citing unnamed sources.

The two countries will not impose additional tariffs on each other during the extension, one of the sources told the newspaper. The current pause was to end Aug. 12.

So, the waiting game begins again…

Figure 1: EPU-trade category (blue, left scale), and Trade Policy Uncertainty index (red, right scale). Source: Baker, Bloom & Davis policyuncertainty.com, and Caldara et al. TPUD. 

2 thoughts on “TACO, Again! (China Edition)

  1. joseph

    Hmmm? Lutnick must not have gotten the memo.

    On Fox News this very morning he says: “No extensions. No more grace periods. August 1 the tariffs are set. They’ll go into place.”

    Reply
  2. Macroduck

    Off TACO – I think I see where some anti-immigrant sentiment comes from:

    https://fred.stlouisfed.org/graph/?g=1KUnu

    As off 2012, immigrant college grads’ wages drew even with native-born college grads’ wages, and have since risen to as high as 105.9% of native-born college grads’ wages. (Most recently, 103.5%.)

    Even looking at all workers, foreign-born have gained on native born, though Covid seems to have put a kink into foreign-born workers’ gains:

    https://fred.stlouisfed.org/series/LEU0257370500A

    We see a lot of “taking our jobs” and “criminal gangs” and “eating the pets”, but not so much about wage gains. Think what it means about their integration into the workforce, into society, that immigrants are rising so rapidly – not just in numbers, but in position and status and income. No wonder all those pampered white guys in Manhattan are going nuts over Mamdani.

    Reply

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