Edward Alden, Senior Fellow, United States discussed on Marketplace

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Automatic TRANSCRIPT

Maybe trade war becomes more real marketplace's kimberly adams explains forget about this seesawing stock market for a minute and think about jobs we've got unemployment pretty near historic lows we've seen a little stronger wage growth recently the us economy is less dependent on trade than the chinese economy edward alden is a senior fellow at the council on foreign relations it's not a bad time for the united states to take a fight like this it would be much harder to do in a weaker economy but that's not the point says varying to rusi at the mercatus center we are inner fairly good position to absorb this shock there's no doubt but it doesn't mean that it's desirable to create the shock she says even of tariffs effect a relatively small number of jobs the uncertainty around this fight could damage the broader labor market to will the us really enact these tariffs will china really retaliate with its own that uncertainty could actually defer okri disincentive to invest more in the us economy because when businesses don't know what's coming they don't want to make plans in washington i'm kimberly adams for marketplace it's really important to recognize that all of this tough economic talk from both sides might actually go nowhere the what we're in right now is a life sized game of macroeconomic chicken lots of bluster big threats and then turning away at the last minute and hammering out a deal what my backing down though look like and that negotiating process marketplace's scott tong used to be our shanghai bureau chief he filed this story from washington there is a certain theater to trade war talk says bill reinsch once represented multinational companies in washington one country pushes the other pushes back they glare at each other and then they talk there will be negotiation i think the chinese have said over and over again that they're anxious to do that if you've been rations a decision not to impose the tariffs immediately but to have a comment period is a sign that they want to go as well what might china give up.

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