Letters: Trump’s tariffs on Chinese goods will hurt US

Mortgage and bond rates are as low as they have been since the Depression, yet we are nearing “full employment.” Part of the reason for this is the $360 billion annual Chinese trade deficit. Most of the excess dollars return to the United States in the form of debt investment. The price of American housing is cushioned by low interest rates.

If Donald Trump applies the kind of tariffs on Chinese goods he has spoken of, he will create another housing crisis. A rise of 2 to 3 points in mortgage rates would be devastating to housing prices, housing equity is the main source of the wealth for most people, and the housing industry is a major source of employment.

While I don’t favor these huge trade deficits, they must be reduced slowly. And with the baby boomers retiring over the next dozen years, and unemployment already low, the United States cannot take up the slack in manufacturing that might return from China.

Beware of demagogues promising economic nirvana. We are already doing quite well compared to other countries. Another real estate crash is the last thing we need.