S&P Global Quotes Clete Willems on Spectre of New Tariffs on Chinese Goods
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S&P Global has quoted Akin Gump public law and policy partner Clete Willems in the article “Escalating trade tensions with China threaten to weaken US stock rally.” The article says the threat of new tariffs could spook investors and derail the rally in U.S. equities.
The article notes that Willems, though, does not seem too concerned. Because the United States is importing less from China due to the coronavirus, he said the Trump administration has the latitude to raise tariffs with more minimal impact. When the economy is strong, it can to some degree absorb the price cost, but it is the middle zone, he said, where concern grows.
“Most folks nervous about the economic impact would argue in favor of raising the existing tariffs as opposed to new product tariffs,” Willems said. “We’re in a situation where we have a global economic slowdown and a lot less commerce between the U.S. and China at the moment, and the impact of tariffs is less than it otherwise would have been. If we’re not buying that many iPhones right now, it’s not that big of a deal.”