🌐 Global Economy 4h ago · Menzie Chinn

What the Heck Is “Structural Excess Capacity”?

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What the Heck Is “Structural Excess Capacity”?
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The US is going to expand the trade war against a whole slew of countries, using Section 301 charging “structural excess capacity”, caused by government intervention. China is up on the block, according Bloomberg:

The US is set to impose a 7.5% tariff on Chinese goods over allegations of excess manufacturing capacity before a planned summit between Xi Jinping and Donald Trump next month, according to people familiar with the matter.
The move would restore Trump’s second-term duties

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