16 Aug 2018
US China Trade War: Tariffs
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Tariffs sound like a good idea, protect domestic business, protect domestic jobs but history proves that they are a bad news.
Everybody loses.
The attached research piece shows the impact of the 1987 introduction of direct import tax on the United States and the impact of the 1997 and 2014 consumption tax on Japan.
For both, inflation rises, spending falls and GDP plummets.
Tariffs are one more indicator that we are coming to the end game in the current cycle and so remember, when fear and panic take hold during the next financial catastrophe, investors will be presented with the opportunity to buy more quality assets at discounted prices.
Click to read.
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