U.S. Senators Charles Schumer and Lindsey Graham have threatened that they will push a vote for a 27.5 percent duty on Chinese imported goods by the end of September, unless Beijing strengthens its currency.
Stephen Roach, chief economist of the leading U.S. investment bank, Morgan Stanley, has said that insufficient domestic savings and excessive consumption, not the exchange rate of Yuan, are the fundamental reasons for the rising deficit.
In fact, Senators Charles Schumer and Lindsey Graham may know that imposing 27.5 percent of tariffs on Chinese imports will not help the United States to cut its trade deficit. This year, however, is the election year; it will be very interesting to see whether the Senators will push for a vote, or make just a hollow statement.
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