That China can stand way more tariff pain than the US is willing to inflict on its population.

Though probably true, let's hope it doesn't get tested.

The US is definitely a manufacturing powerhouse, second biggest in the world. (though just so efficient that it's accomplished with only 8% of the workforce). Germany, Japan, and South Korea are all famously huge too. But China's manufacturing output is more than the sum of those four combined.

Pressuring other countries is not good form, but if you really wanted to do it, tariffs are not the way. That's better accomplished with export restrictions. I suspect that China could shut the US economy down by banning the export of only (say) 20 products, and I think it wouldn't even violate WTO rules. The CCP wouldn't really care much about the impact on the local manufacturing companies. It would certainly make enemies, of course, so (again) I hope this sort of thing is never tested.

Jim

Berkshire Hathaway FAQ

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