The US administration’s “America first” policy, repres
ented by its unilateral and protectionist moves, has harmed both countries’ economic interests an
d proved to be a drag on the global economy, as the recent turmoil in the international capital market shows.
Simulation tests of large general equilibrium models show that
both countries’ economic indicators would suffer due to the US tariff hike on $200 billio
n of Chinese goods two weeks ago. For example, China’s GDP could decline by 0.657 percent, manufacturing jobs by 1.02
8 percent, exports by 3.359 percent, and imports by 1.384 percent, while the decrease in the US’ GDP would be 0.004 per
cent, manufacturing jobs 0.652 percent, exports 1.876 percent, and imports 3.883 percent. And global GDP, ma
nufacturing jobs and trade could reduce by 0.123 percent, 0.28 percent and 0.79 percent.