Billionaire investor Bill Ackman argues that the US and China need to cut their excessive tariffs, which currently range from 125% to 145%. He suggests that these tariffs are harming companies reliant on Chinese imports and that a rational target would be to reduce tariffs to between 10% and 20%. Ackman states that the fear of appearing weak is the main barrier to these reductions, and he believes that both countries can benefit from mutual tariff cuts, as companies may relocate due to ongoing tariff pressures.
The only thing stopping the reduction in tariffs to a more sensible level is the fear on the part of both countries' leadership of looking weak.
A pause, however, would not be a sign of weakness because it requires both countries to take down their tariffs. It is just common sense.
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