by Chris Black
If you were not paying attention, the White House threatened on Tuesday to slap tariffs on fifty billion dollars worth of Chinese imports, which will affect 1300 categories of products. Chinese imports that will suffer from 25 percent levies would include medical equipment and medicines, chemicals, machine tools, television sets, dishwashers (consumer goods basically) etc. as per an official statement via U.S. Trade Representative. Beijing’s reaction was harsh, threatening to take equivalent measures against US products, and on Wednesday they announced their own (extra) tariffs on 106 US made products (the same 25 percent levy) , targeting up to 50 billion of US products every year, including soy beans, whiskey and cars, in a tit for tat move. However, none of these threats/tariffs will go into effect immediately, so let’s analyze the situation.
First of all, the Chinese have been violating our commerce laws and have also been placing heavy tariffs to products we sell to them since like, ever. When are the globalist going to learn that the Chinese don’t play by any rules, as they are Hell bent in having global domination, while our so called business people are only looking out for their own pocket? We have trade deficits with many countries. I’d prefer not to have one with the country we are most likely to have a major war. All we have done until Trump is to subsidize their military buildup.
Why we have a problem with Cuba and Iran in terms of trading with them and not China is absurd, as China poses a much bigger threat to the US than a bunch of screaming mullahs who may one day have a nuke, and a country so dysfunctional that doctors make less than cab drivers. China needs us more than we need China. Free trade with free people! I think a better approach than tariffs is to appeal to the suppliers of Chinese goods to the US that there is the real possibility of their supply source being cut off entirely. It is this sort of approach that convinced Japanese car manufacturers that building plants in the US was not such a bad idea. Got to make them nervous enough.
Why are so many afraid of a trade war when we are on the short end of over half a trillion dollars of trade deficits? The globalists who want open borders and who think a job in Sri Lanka is just as good as one in Tulsa, Oklahoma are pushing this garbage. It is all a lead-in to no borders, no country, an eventual global government and a global currency (think SDR). This started with the advent of multinational corporations, who have zero loyalty to US workers, or to the country. They just want an easy way to transact business globally, pack up and go wherever the labor is cheaper, maximize profits, and to hell with the people of any one country. Their loyalty is to the stockholders and themselves. I want to return to sanity, and where the hell is the Justice Department? Why aren’t monopolies being broken up? It is getting so that only the big businesses can open a new business. They make the regulatory and permit process so daunting that it has become a feedback loop that kills all the small businesses.
If you ask me, Trump has done the math and if he is doing this, then we have more leverage. When China squeals, they will come to the table, Trump will negotiate a deal beneficial to the U.S. by throwing them a few concessions in the process so they feel good, and it will be yet another win. This is why regular politicians fail: short-term bad headlines for a big win are totally worth it, but most regular politicians are too frail to take any kind of criticism.
This is a fascinating game of high stakes poker. Notice how many of these “threats” are simply that: no real action has taken place yet. It remains to be seen who blinks first. My guess is that we will reach some kind of settlement with China in the end, and the sky will not fall after all. The Chinese have a lot at stake here. As annoying as Trump can be, I think he is dead right on this one.
China has engaged in economic warfare against the US since Deng’s trip to the US in the 70’s. There is absolutely nothing fair with trading with China. These guys will sell their own mother if it promotes the interests of the “hive”. All Trump is trying to do is to level the playing field. If that means total trade war, then I’m all for it. Better now while we have a chance to win or draw, than later when defeat and subjugation is all but a certainty.