Kevin Duffy on the benefit to American consumers from trade with China

American consumers were standout winners in the pre-Trump 2.0 U.S.-China trade relationship.  Last year, the U.S. got 78% of its imported smartphones from China, 65% of its TVs and 76% of its toys.  As the chart below shows, these categories experienced massive deflation since 2000 at the same time the Consumer Price Index rose 81%. (Unfortunately, we can’t yet import pre-fab homes from China!)  More money in consumers’ pockets translates to more consumption, more investment and more jobs.

~ Kevin Duffy, "Mercantilism in America," The Coffee Can Portfolio, May 6, 2025