this post was submitted on 02 Apr 2025
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chapotraphouse
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I'm wondering how China, the EU and the rest of the world will retaliate and if they will have the resolve to make it really hurt in Washington.
They will use regulatory measures to disincentivize investment in the US and cut any government contracts with private US corporations.
While the US is a net importer of manufactured goods, it is a net exporter of services. Tech (social media, Netflix), financial (visa, investment vehicles) and healthcare (pharmaceuticals, medical devices).
Finding an alternative to the American service industry (partly through an openness to violating US intellectual property) will be an important early step.
The goal is to diminish American purchasing power and therefore influence over time. It will hurt Americans sadly but unfortunately the American public has voted for this, so the world has no choice but to respond.
not trying to quibble, genuine question: aren't these goods, not services?
Kind of. With both there is often expertise that may need to be transferred for appropriate usage which can be seen as a service.