Answer to Question #31519 in Macroeconomics for Will Smith

Question

Why doesn’t the U.S. simply restrict all goods coming in from China?

Answer 1

Well, as it is now, America relies heavily on buying cheap products, and in order to sell these products at cheap prices they find it convenient to outsource to foreign countries (i.e. China, Mexico, etc).

Also, hat would cause problems. China would see it as a threat and our business wouldn't like that. The price of goods will skyrocket and more people would lose their jobs.