By Hao Li: Subscribe to Hao's RSS feed
January 18, 2011 11:12 PM EST
As Chinese President Hu Jintao visits the U.S., the ongoing dispute over the value of the yuan is thrust to the forefront again.
As U.S. politicians struggle to regain economic momentum and create jobs in the aftermath of the financial crisis, the issue will not go away any time soon.
The answer is 'yes,' history shows.
In 1971, the U.S. faced a trade deficit with European countries and Japan. In response, President Richard Nixon, among other dramatic measures, slapped a 10 percent tariff on all imports.
In just a few short months, Europe and Japan agreed to revalue their currencies. In 1973, the United States briefly regained its trade surplus with the world.
In the 1980s, the U.S. again ran into the problem of running large trade deficits, this time with Japan, Germany, and certain emerging markets economies.
As a result, Democrats in the Congress agitated for import tariffs again. They introduced bills that would impose tariffs as high as 25 percent on countries that had large trade surpluses with the U.S.
Who is Priscilla Chan, Mark Zuckerberg’s Wife?
NATO Chicago 2012: Leaders Meet Amid Protests, Bombings And Alleged Terror Plot
Teenager Melissa Bassi Dies From Italy School Bombing, Mafia Suspected
Tropical Storm Alberto Forms Ahead Of 2012 Season: Should You Worry?We value your privacy. Your email address will not be shared.
