Trade Wars Threaten Global Economy, Disrupt Local Communities
The article examines the effects of potential trade actions using a detailed model for 165 countries. It looks at scenarios like U.S. auto tariffs, a deal to reduce the U.S.-China trade deficit, and increased tariffs between the two countries. Overall, the impact on GDP is small but negative, with big disruptions in specific industries and effects on other countries. Wealthier U.S. states may benefit from certain scenarios. The results suggest that sticking to current trade levels is important, and breaking down the trading system could be risky.