Oh, thank goodness I just got my new Toyota.. No telling how Donnie will screw things up with Japan..
800 steel manufacturing jobs added in Northwest Indiana.
Australia and New Zealand will be major beneficiaries of the Trumpian Trade Wars (TTWs). We thank you Donald and commiserate with our American cousins.
2
I've been a free trade Democrat for a long time. Trump's neo-protectionism is misguided and dangerous. It's nevertheless i interesting hiw many Times readers are now globalists. "Our enemies friend" and all that...
1
The US can do without Chinese products long after China goes broke...
More uninformed flailing around by the inexperienced and unprofessional Trump administration is strictly a play for Trumpist voter appeal. Just with Trump's tragic G7 Comedy Hour performance, the true interests of the United States have nothing to do with Trump bungling. Perhaps it woud be worth knowing if the Chinese failed to grant Trump personal favors as they have in the past by allowing 38 trademarks for his private businesses in China, including escort services.
We comeback to the eternal question: How long is the Republican Congress going to look the other way while Trump destroys US credibility throughout the world with his toddler antics ?
And of course, the key follow-up question: Will American voters come to the rescue of our failing democracy by throwing these Republican sycophants out of office?
2
For China to get what they want, all they’d need to do is take away Ivanka’s trademark rights they just gave her. Kind of a no brainer which I’m surprised they hadn’t thought of yet.
1
Tit for tat. Trump, apparently, got up on the tariff side of the bed this morning. We should be grateful the only thing he has launched were financial barbs and not ballistic missiles. Nevertheless, China is now an “enemy” and not a trading partner (Wasn’t it a week ago or so that he was fretting about Chinese employees at ZTE? What happened!?). The real question is: who really benefits from this “trade war?” The American middle/working class does not benefit. Any slowing of the economy threatens jobs. Any rising prices harm American households (Don’t you think that companies will pass along the increases, plus some, to consumers?). Trump’s decisions have nothing ever to do with his constituents. Investors who can move their money around the world in an instant don’t care what he does. Trump’s “hardline” is usually a stupid one. While he fiddles with on-the-job training the rest of us are left to simmer and burn. Curiously, when Rubio and Schumer agree that can’t mean anything good for working families. Their donors tell them what to say. Now I’m starting to understand that thing about the meek inheriting the Earth. Or, at least what’s left of it.
1
It ended very badly for the last supremacist dictator who wanted to attack the whole world. But king Donald is probably not aware of History.
3
If Trump neglects to seek funds for a northern border wall, not to worry, Canada will build it, and demand that the United States pay for it which, just like Mexico, the US will promptly agree to do.
2
The naysayers of anything that supports American workers over foreign workers have met their Waterloo. China is the true evil empire when it comes to fair trade. Bravo, President Trump.
1
«The president is battling on a global front, taking aim at allies and adversaries alike.» The adversary that Mr Trump is here battling is not primarily China (of which an intelligent foreign policy would attempt to make an ally, rather than an «adversary»), but rather the WTO and the whole rules-based multilateral trading structure that the US, based on the disastrous experience of the 1920s and 30s, found in its interest to create at the end of the Second World War. Now Mr Trump et consortes are attempting to take us back to that period of bilateral «deals» and tit-for-tat retaliatory tariffs (remember Smoot–Hawley ?) in which it is assumed that, due to its greater economic (and, let us not forget, military) power, the US will be able to overawe any partner in a one-on-one negotiation....
It seems unlikely that these tactics will work with China, but they may yet succeed in bringing us closer to a global economic crisis which, as did that of the 1930s, vastly increases the risk of a global war. As Axel Oxenstierna wrote to his son back in 1645 : «An nescis, mi fili, quantilla prudentia mundus regatur ?»...
Henri
3
Trump is essentially doing to America what he did to his many businesses that failed. He plays fast and loose with the national purse strings, takes huge risks and hopes he can bluff his way to a win. But that often didn’t work for him in business and it’s not going to work on the world stage.
Good luck America. Time for a new leader before it’s too late!
2
As i live in the country that is considered a security threat and have a "meek and dishonest" Prime Minister...there is only one thing i can say about China slapping 50 billion dollars in tariffs on your country and that would be...1, 2, 3, 4 who are we cheering for...China, China yay China.
1
The retaliation tariffs are on the USA automotive industry and agricultural industry and will affect Trump supporters.
Third highest numbers of tourists to the USA are Chinese. The Chinese government is communist and approves what nations their citizens can visit. (Just saying!) lol!
Most New Zealand exports are to China and that's agriculture. NZ has a free trade agreement with China and we get the same number of tourists to our nation as total population. ( 5 million)
3
Well, let's be a little honest. The "Trade War" was started years ago by China. They have had more Tariffs and import restrictions then we will ever have. Do your homework. Try and buy an American made car in China and you see how much more you will pay then here in the US. That is but one of many examples of China's "Trade War" that we have been stuck with while they dump as many imports here that they can pile into a Walmart ship!
3
In 2008 Congress had to appropriate 700 billion dollars to bail out banks and avert a monetary meltdown.Slowly during the Obama years the economy recovered and became solid and producing jobs.Mr.Trump inherited this good economy and now is hard at wrk destroying it.Trade Wars hit economies all over the world- other countries will not be buying our goods and services- This means one thing-RECESSION- get ready for it because it is coming to a community near you.
2
I guess it all now comes to how the European allies will behave. They can either sink Trump or save the USA. They will not want to save Trump, but maybe they look at the bigger picture. On the other hand - getting rid of Trump should be all former allies #1 priority unless they want to keep the status "former ally"
8
trump starting a trade war will not bother the trumpers. Since they are seeing so much extra money as the result of their tax cuts, not really, they can more than afford the increased prices resulting from the trade war brought on by the big cheeto.
Sane, rational people have to vote in November to stop this authoritarian madman since republicans in congress refuse to put country ahead of the cult.
7
Thanks to Trump, consumer prices will get artificially higher and jobs will be lost as a result. I just sold my stocks. I figure that with Trump in charge I can buy them back later at a reduced price.
3
Here's the best from of retaliation that the Chinese could take. They could stop buying our US treasury bonds that is financing our out of control annual federal deficits that are occurring under Trump. Lets see how long we last. What will be Trump's response? Increase taxes, cut spending, declare war or capitulate?
3
Its easy to imagine this trade war with China continuing for awhile. Trump will likely ratchet up the rhetoric on a daily basis. The stock markets will notice more and more.
If corporate America decides a change should be made, will the seers in the Republican Party finally recall Trump?
What happens if this trade war escalates further? Will the Chinese stop purchasing Treasury notes and invest their cash elsewhere? Not much good could come from that.
It’s mind boggling that a reality TV show host could single handedly derail the United States economy. And, by extension the world economic order.
Pray and pray hard.
6
Wasn't the idea behind the corporate tax cut to "give' corporations more money so they would stop making things in China, build and /or expand production here and then give Americans more jobs? Uh, guess that isn't going to happen. Mainly because American corporations want their higher profits and their tax cuts too. And the American workers get.....few manufacturing jobs and higher prices for what they buy. This always was going to be a win-lose for America. Just not a win for workers. Time to stop watching what China is doing and start watching what American corporations are doing. We helped raise the standard of living in places like China to create bigger markets for American goods. Now we want to reverse that process. Imagine for a minute what would happen if US corporations bought all their jobs back here. Increased poverty abroad with limited ability to buy things. And higher labor costs here. There are consequences to everything we do. Thinking it will be a we win, you lose end game is foolish and narrow sighted. Kind of like thinking if you build a casino and it goes belly up, no harm done. Just declare bankruptcy, write the whole thing off on your taxes and move on to the next venture. But when you stiff workers at your casino they don't have to consider voting for you. The job now is to make it look like you aren't stiffing anyone. Because now they have the means to get you back.
4
Economically, Trump and the U.S. have the upper hand. China depends on free access to our markets--on exports to the U.S. for a large percentage of its GNP--and it's wealth. They fund most everything, including their military, through this.
However, having the economic upper hand is not necessarily the end of the story--because getting China to bend, agree to stop strong-arming our companies, stealing our trade secrets, and dumping good into our markets, will require them to feel some pain--and that takes time.
Right now, all we have is a giant game of chicken. Unfortunately, Trump will get very little domestic support in his quest to wait them out--until China feels the pain and comes back to the table. Democrats, and their fellow travelers in the media will engage in a second game of chicken--savaging his strategy the entire way, criticizing it--second guessing it---producing stories of people being hurt while we wait for the Chinese to come to their senses.
If there was ever a time for national unity--it is now. We may have to endure some collective pain in order to bring our trading partners to their senses. The question is...will The Resistance quiet down long enough to convince our trading partners that we are serious about restoring free and fair trade back into our agreements?
Liberals in this country are already on record, calling for a recession to upend Trump. Will they hold their powder long enough for Trump to achieve any victories? Never.
2
As usual, they either don't get it, or won't acknowledge, the immigration problem and the jobs problem in China is not due to the immigrants or the Chinese. It is due to businesses in America that are addicted to cheap labor.
Punish the companies for hiring undocumented workers and sending all their Manufacturing overseas.
1
The good, karmic aspect of the tariffs is they place the companies who've benefitted most fruitfully from the deficit-exploding tax bill direct;y in the line of the tariff-fueled fire. The terrible karmic aspect of the tariffs is the people who got a small bonus thus year attributed to the tax bill may lose their jobs entirely. MAGA!
4
US philosophy has always been the idea of competition and the believe that through competition the quality of life would become better. Raising punitive tariffs seems like an abdication from this principle. Why not show the world once again that American products can indeed be better, more intelligent and cheaper without starting economic warfare. On the other hand it seems reasonable to balance out unjust or unfair trade structures between the competing countries of the world. There probably are quite a lot and always have been in history. Not the least very often to the benefit of the US. But such reforms should be done with care and not like a bulldozer.
The more the Chinese retaliate, the more popular Trump gets.
So, I can see at least one valid motivator of Trump's behavior.
Now to the others. Does any American really believe (never mind what we know for sure) that the Chinese are playing fair with their trade? How do you trade with someone who is stealing our technology, amassing a huge stockpile of crispy new dollar bills, selling everything from children to organs, has the government engaged in illicit arms trade and every other nefarious activity, and closes the market off to our products? Never mind the territorial expansion, and global ambitions of taking over the planet with an emperor in charge.
What other than tariffs does anyone propose as an opening salvo? Should we, for instance, declare their major banks as ex-communicated? We could, and that would stop them, but the consequence on the average Chinese citizen (with whom we have no quarrel) would suffer.
I am not suggesting Trump's motivations are pure, but everyone else tried to coddle the Chinese, elevate their importance by including them in dialogs, and now it is coming to bite us quite directly. Republican presidents starting with Bush I have personally profited from their association with China, and Trump is no different. Corrupt Republicans have never bothered Americans; only corrupt democrats.
"This is not the right way of doing things, this is not the right time," etc., are refrains of the effete. It is time to act. This is a valid action.
2
China has been stealing our technology for decades. The Made in China 2025 plan announced by de-facto Emperor Xi telegraphs his intent to usurp our global preeminence as well. We are already seeing a precursor of the existential threat that poses to the US as Xi extends China's hegemony into the South China Sea by constructing island fortifications with the clear intent of controlling maritime commerce in the region and extending the reach of its military. In that regard, China’s motives do not appear any different than those of Imperial Japan in the 30s.
No one likes a trade war but with a chronic yearly trade deficit of $350 billion we are financing financing China’s ambitions. The tariffs president Trump is imposing are targeted at China’s high tech industries, industries that have benefited from the theft and forced technology transfers from American companies they permit to operate in their country. These are also industries that pay high wages necessary to insure a high standard of living and preserve our national security.
The tariffs are only one facet of the holistic approach president Trump is undertaking to better the lives of all Americans. Consider the corporate tax cuts already achieved, the regulatory reforms being undertaken as well his embrace of our energy sector, all things vital in facilitating the renaissance in our industrial/manufacturing base many have envisioned for decades. A renaissance that insures America remains the land of opportunity.
4
Trump has said that other countries have tariffs on our products and he us just trying to level the playing field. I have followed many stories on all this, and no commentator has disputed Trump's claims that other countries have tariffs on our products. So, if other countries have tarrifs on us, why shouldn't we respond?
I keep reading comments decrying Chinese theft of our technology.
A few comments:
1) Why re-invent the wheel when one can simply steal it?
It makes more to steal what one can, and invest R&D money into that which can't be stolen. We do it.
2) America's once commanding lead in all things STEM related has pretty much melted away. US has dramatically scaled back investment in education and scientific research.
3) America is not EVEN in the top 20 for math and science as evidenced by the OECD PISA data. America can NOT stay on top for long with this situation.
4) China graduates 5 times as many STEM folks than the US. It won't be long before we steal technology from China.
2
It seems that President Trump wants to go back to times of the unchallenged supremacy of the US. But the world has changed and there are more than one players. Secondly the US wants to deny the Chinese import of technology from the US so that it cannot match the US. But again world has come far and this policy could delay but not derail the process of catch up by the rest of the world.
As an asian businessman trading with both China and USA, one thing is very clear: that America cannot continue with Obama's policies on trade if it still wants to remain as the dominant force in trade. China has grown exponentially over the last 10∼20yrs. Even lower tier cities have modernized to an unrecognisable extent from 20yrs ago. Its middle class has grown so affluent that many own properties in New York, London, Melbourne and Singapore. Although China's rise is imminent, the speed at which it has risen is all thanks to America and its businesses. Profits and greed knows no boundaries. Obamanomics help accelerate China's rise. American businesses, in its bid to gain a foothold in China, flocked there and volunteered its technology. Trump is wrong to say China stole America's intellectual property. America gave it away willingly for the last 20yrs.
10
I don't claim to understand all the intricacies of the TPP. To Trump and his devotees here's the simple equation:
GET TOUGH ON TRADE WITH CHINA = PULL OUT OF TPP
To me that's like saying "Food prices are too high; I'm not going To the grocery store." Easy to not go to the grocery store! But who gets hurt?
I recently heard Mr. Trump say, "Isn't better if we talk rather than go to war?"
yep. it is so......
3
China already taxes the hell out of imported products. What the US is doing is just playing a little catch-up.
1
I work at an engineering firm that designs and fabricates industrial equipment. Believe me when I say the threat of tariffs affected our costs and that of our suppliers. Actual tarrifs will only increase the costs. Ironically, although I'm in a very blue area, my company , especially the older engineers, leaned heavily Trump. Not so much now.
9
This is just another way for Trump to benefit the Trump family enterprise. US companies and those from countries against whom he imposes tariffs will seek exemptions. Exemptions will be granted to those who can benefit the Trump family enterprise.
9
Wonder who will end up eating this road kill in the 2018 elections? Xi, Trump, or the American people...
5
Trumpf and his advisors have absolutely no understanding that we are living in an international economy and that competition is what makes products better and lower priced. As one business executive once told me: "You can't stop technology."
He also has absolutely no idea how his actions will affect U.S consumers, manufacturers and farmers -- all groups that supported Trumpf in the presidential elections.
I can't even begin to imagine how our economy will be affected if Canada and Mexico if tariffs are placed on steel and aluminum.
4
So why aren't you advocating that other countries stop their tariffs on our products?
It seems to me that the vast majority of economists would agree that tariffs hurt both sides in a trade war.
How exactly? By driving up the cost of goods.
This means inflation. And of course it will hurt one of the demographic groups that voted for Trump, namely old folks on fixed incomes.
To some extent social security is protected by inflation adjustments, but most pensions do not have full inflation adjustments. So old folks will see prices rise with no means of offsetting those increases.
There are some who voted for Trump because at least he recognized that resources are not unlimited, and illegal immigration is beginning to fray the safety net for the poor.
Indeed, since 1986 when the last Immigration Reform Bill was passed (and then ignored), the US population has grown by 36%, while the number of physicians trained in the US has grown at roughly half that rate.
The result is health care inflation, and our inability to cover everyone with universal health care.
But nobody could foresee how Trump would ignore all advice, and appoint only sycophants to his cabinet. Thus he makes an elementary mistake regarding Tariffs and in the process antagonizes all our allies as well as China.
He should have learned from China. In addition to stopping illegal immigration that US needs to cut fertility so that we achieve zero population growth.
Otherwise the declines in living standards for the nation's poor will continue as we tend to a Malthusian end state.
7
Some economists suspect Americans consume too much and probably over-extended on credit with 5 year auto loans. Saving for a rainy day; no longer the American way? If people save more; more investment in the infrastructure? Reduction of US trade deficit; with less imports. US dollar devaluation having the same effect of reducing imports like Japan 1990.
US corporations invest in Mexico and China for lower wages to maximize their profits: APPLE. To change course and re-tool USA will be challenging; only possible over time. As with Britain selling the "family silver" to foreigners like QATAR short-term solutions preferred by bankers and private equity. US has nothing to fear over trade. Evidently China successful developing their country (not just for short-term profits) in part due to heavy US investment; until now?
2
So it is official, the US is at a trade war with the rest of the world the basis for the declaration of war is with the non understanding of the president of the US about business and the basics of trade.
Talking about the "Art of the Deal".
The US has a deficit in many places when only the trade of goods is taken into consideration, but if you look at the whole picture, which includes services and investments as well, the US has a surplus in many places.
This surplus is what the US lives on today and this surplus is what will now disappear as a result of the unilateral declaration of a trade war by the US.
Looks like the US will soon join Third World countries not just because its infrastructure and social structure is falling apart but because its economy is run by someone whose intellectual capacity and understanding of the mechanics of an economy fits the likes of Maduro and Co. of those Third World failures.
So, just to make the point, if the rest of the world will end buying services from the US and will end investments into the US, like China already considers, the current economic data of the US will change dramatically and the US will become a Third World country.
So I wonder why the US citizens still let Trump and Pence run amok?
Time for a regime change in the US.
2
President Trump said, “These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs.” Senator Schumer noted China's "theft of intellectual property and their refusal to let [American] companies compete fairly." I don't see how a tariff-based trade war will change these things. In fact, raising tariffs will probably have the exact opposite effect. Democratic leaders joining in President Trump's irrational lashing out against China is not encouraging. Combine this with President Trump's decision to punish our traditional allies and thereby lose their support and assistance, China will probably redouble its efforts to develop high-tech industries and trade more heavily with the EU, Canada, Japan, and other countries. In summary, I'm just flummoxed by these American policies because they don't seem to be rationally related to the pursuit of any worthwhile goal, regardless of what our Republican and Democratic leaders say. In a similar vein, despite the desire of countries such as Norway, Poland, and the Baltic countries for closer military ties, I suspect President Trump is going to pull back on our security commitments. Maybe this really is the end of American leadership in the world and we are, in fact, moving toward staunch isolationism. Sigh...
3
There was already a plan in place to pressure the Chinese government on issues regarding unfair subsidies, intellectual property, and such issues. It was called the Trans-Pacific Pact.
It was meant to engage in a multilateral economic free trade in the Asia Pacific region. An agreement in which China was excluded from. The idea was meant to place economic pressure on China to reform on unfair commercial and trade policies.
Now, we are entering uncharted waters. The Obama administration early on attempted at a tariff war of sorts with China, and soon found that it was highly unproductive in achieving their goals.
At this point there is no play book. There has not been a lot of records of the top two global economies engaging in tariff ping pong. The best case scenario, China offers a sufficient enough of tokens (e.g. a couple more trade marks to Ivanka) to subdue the White House. The worst case scenario, this trade wars go far enough to financially hemorrhage American industries and consumers.
History is really in the making. This White House is deliberately and knowingly engaging in destructive and harmful trade and foreign policies at the cost of the welfare of American producers and consumers.
1
I think none of the countries would retaliate by hiking tariffs. They know an escalating trade war might hurt the American economy but it will certainly bankrupt theirs. America is the biggest market there is. Chinese prosperity depends on access to American markets.
So there will probably be no retaliations, just threats and a lot o complaining.
1
Forget all this trade nonsense. The real threat to employment in America -- or the rest of the world for that matter -- isn't the alleged unfair trading practices of any nation or group of nation. It's automation. The question that future workers are going to have to answer is "What can you do better and cheaper than a robot." Right now, for the vast majority of workers in the manufacturing sector, the answer is "pretty much nothing." And I don't think that is going to change. Heck -- robots can deliver pizza now!
It won't necessarily be an issue of poverty. The wealth will still be there, but the traditional methods of distributing that wealth are breaking down and nobody has any idea what will replace it. So can we forget about the politically convenient irrelevancies like trade, and start talking about the real problem. Right now all I hear is an ominous silence.
6
Isn’t the Senate supposed to ratify treaties? Isn’t Congress supposed to be the entity deciding on tariffs? Have we already transitioned to authoritarian rule?
12
Far more important than tariffs on Chinese goods, whether individually justifiable or not, would be weaning us from our dependence on Chinese computer chips. One does not need to be a conspiracy theorist to believe it is likely that many of the chips which facilitate the operations of our military's command-and-control apparatus, our electric grid, our financial structure, and personal electronics from your cell phone to your car to "connected" home have chips with embedded code allowing the Chinese government to wreak absolute havoc on America, either during war or as blackmail to achieve its goals.
America should not be trading away its security so that Apple and other large corporations can make even more profit. And America would be better off if its President spent less time playing with his mini-tweeter and more time studying important issues regarding our security. Instinct and intuition have their place, but only as tools predicated on actual knowledge and relevant experience.
3
Far more important than tariffs on Chinese goods, whether individually justifiable or not, would be weaning us from our dependence on Chinese computer chips. One does not need to be a conspiracy theorist to believe it is likely that many of the chips which facilitate the operations of our military's command-and-control apparatus, our electric grid, our financial structure, and personal electronics from your cell phone to your car to "connected" home have chips with embedded code allowing the Chinese government to wreak absolute havoc on America, either during war or as blackmail to achieve its goals.
America should not be trading away its security so that Apple and other large corporations can make even more profit. And America would be better off if its President spent less time playing with his mini-tweeter and more time studying important issues regarding our security. Instinct and intuition have their place, but only as tools predicated on actual knowledge and relevant experience.
1
Let's see what happens. Trump is a businessman probing for weakness. Not cave in, no tariffs. See the record.
This is September 1st, 1939/2018. We have had successive administrations dither and engage in one-sided bargaining with an authoritarian and mercantilist regime in Beijing. I despise Trump, but when a person you despise is taking the right action at the right time, a person would have to be the worst kind of bigot to decide to disagree on principles when the issue is personalities. And no, this is not "getting the trains to run on time", this is the future my grandchildren will grow into.
The question we have to answer is, "Was Chamberlain right?" Was negotiating and avoid confrontation at all cost, in the end, the better option? And don't deceive yourself, the leaders of every major European nation would love to do what Trump is doing, if they had the steel.
2
Out of 160 member countries in WTO - only one country is fighting with everyone. Rest have no problem with existing trade setup.
Who is now disadvantaged? American businesses and consumers. Americans now have to pay more to compete with rest of the world.
3
Trade wars are easy to win, remember?
Also, volatility is money for bankers. Moreso with fewer regulations.
1
You can’t beat Asia on producing cheap commodities, but you can sell high quality products to their rising middle and upper class. This is how Germany and Switzerland run a trade surplus with China, or how Apple makes mind boggling profits there. Trade barriers feel like cutting losses rather than a long term winning strategy. I fear that we will make the lives of mediocre CEOs more comfortable, the ones who only focus on M&A, cost cutting, increasing market share, lobbying etc. but lost the ability and focus to make excellent products along the way. Picture American vs. German cars, appliances, etc.
1
This trade war is Trump's personal war against the world economy. There is no good reason for it. He is "shooting from the hip" to impress his base - who do not understand the serious ramifications of his actions. If Trump's goal is to make America great, he is going in the wrong direction.
27
Trump will eventually create chaos on a world scale on trade with others. The sadness is the additional costs to the American taxpayers, and the loss of friendships and productive alliances with other nations. The U.S. is a greedy nation, and the world knows it.
2
Congress (remember them?) does have the ability to stop this tariff madness...but that would mean the Republicans would have to step up to the plate and vote against Trump by rescinding the law that enables Trump to do this. But, they are all so afraid of not being re-elected that they are frozen with fear. VOTE THEM OUT. They were elected to represent us, the people. They were not elected to represent Trump.
4
Unlike Canada, Mexico, and Europe, China will use the near collapse of ZTE and the escalating trade war with the U.S. to hold a mirror up to their progress and challenge themselves to do better. They look toward the future with the same intensity we look over our shoulder to the "1950's." Regardless of whether you think One Belt, One Road is a good idea or not, name ONE international economic undertaking even under discussion by the United States. We are being governed by the most uneducated who are being supported by the most uneducated. Democracy is the expression of a nation's most "common" self; the average of US is below average.
33
US not alone: BREXIT driven by popular demand. Losers always win if people gamble on a hunch.....
When I think about getting tough on China, or even trying to get an upper hand on the Europeans - I'm not entirely opposed. Why not try and win at the trade negotiations.
My anxiety is simply just how poorly this is all done. When Caesar went to Gaul, he divided and conquered his enemies in sequence. Our strategy right now is to unite literally everyone against us.
Couldn't we have led a united West against Chinese trade infractions? After we'd one that battle, couldn't we have taken on the EU? Why attack everywhere all at once? Unless this somehow sparks a conflict of all-against-all, it's us against everyone. We are on a path to defeat.
2
Sounds great but our allies don't want that since many run a surplus with China, a country that steals our intellectual property and dumps their products on us.
Dan Fannon says the Trump base will be unable to see that when cheap Walmart prices rise, and decent paying jobs become even more scarce, that Trump's obsolete trade thinking is causing their lives to get worse. What does that say about the thinking abilities of his supporters?
When people believe the equivalent of 2+2=17, and berate those who try and tell them the straight truth, that 2+2=4, our nation is in deep trouble. This is akin to documentary footage of N. Koreans being interviewed about their beliefs. The population in N. Korea has been prohibited from knowing how the world really is for it's entire history of the most extreme totalitarian corruption and lying propaganda of all time. To them, left is right, up is down, evil is good, and cold is hot. This is now the mental state of millions of voters in our nation.
In 1932, the Republican Senate launched an investigation into the causes of the 1929 Crash. At first it was a sham, as they refused to grant subpoena power to three head counsels. Only when the Senate became a Dem majority and FDR came in, was Ferdinand Pecora, the 4th head counsel, allowed to do what Mueller is doing now, get to the facts. Heads rolled, the public was even more outraged at the Republicans and the crooked bankers, one the head of what is now Citibank, and major bank reform resulted. (since repealed-voila-2008)
If history repeats itself and the corruption is fully revealed today, will the facts be called lies by the gullible?
18
When everyone starts to retaliate against the U.S., watch the U.S.economy tank when only the wealthy will be able to afford to buy anything.
8
Strange guy this Trump. He's fighting a trade war on two fronts: with his allies and with China. Meantime he is weakening the US position financially. The budget deficit will rise to 100% of GNP. That means one more crisis and the US will reach the credabilty of , say, Italy, but without the backing of a united currency and the financial discipline of Germany.
Europe and China are now pushed to cooperate, where Europe and the US should, towards a more honest and lawful position of China. This is a major mistake by Trump c.s. and may cost the US more than we now foresee.
2
If Trump is trying to impose starvation on the mass population of China with his stiff ill-measured tariffs, he has forgotten that this superpower is far more ancient and resilient than our young nation. Listen carefully, without listening to his voice, and you may pick up the bravado of desperation, where a man feels that he is coming a cropper and wishes to take his country and people with him.
2
Well, NAFTA is torn up, TPP is gone, G7 is weakened. So, we got tariffs. How do tariffs address the theft of intellectual property? They don't, but if the only tool in your toolkit is a hammer every problem looks like a nail. It's going to be a painful lesson in economics. Let it run. Elections have consequences.
12
Whatever you personally think of Trump, everyone agrees that he’ll never take responsibility and apologize for jobs lost from a trade war- others will quickly be found to blame, and attacked for their lack of loyalty to the President.
20
According to the Des Moines Register today, the pork and soybean farmers of Iowa alone are set to lose a Billion$ due to this trade war with China.
From "China tariffs on U.S. soybeans could cost Iowa farmers up to $624 million":
"Grant Kimberley, director of market development at the Iowa Soybean Association, said farmers are holding out hope that trade disputes are resolved before the July deadline — or are short-lived if they go into place. . . .
It shows losses for U.S. [soybean] farmers could range from $1.7 billion to $3.3 billion with tariffs up to 30 percent.
"You can't make business decisions with this kind of uncertainty. … it will be difficult not just for farmers, but ag lenders, equipment manufacturers, seed companies," Kimberley said. "It impacts everybody."
. . . And U.S. farm competitors will swoop in to capture as much of the Chinese soybean market as possible.
"It will be South America — Brazil and Argentina — and parts of western Europe — Russia and the Ukraine — that win," Kimberley said.
"U.S. or China won't win," he said. "And the U.S. and Canada and Mexico won't win if those tariffs go in place long-term."
1
One thing we know for sure is Donald Trump is having a good time playing with all of his toys. Regardless of whether he makes the country stronger or 'wins' at his games, he will still enjoy playing and he will still have 3 billion or so when he leaves office.
Who knows what the real reasons are he is starting a trade war? Trump seems to be abandoning our traditional allies and embracing his new buddies, the heads of China, Russia, North Korea, etc. I believe Trump is concocting his own plans behind the scenes. One angle I think he uses is manipulating the stock market. He doesn't need insider trading info, he creates the market movement himself. Maybe there's a 400 lb fat guy with a computer in a motel room located in some obscure country that is siphoning off billions for Trump and his gang.
I'm beginning to feel pretty hopeless about everything Trump does. I just heard George Will state that he believes Manafort and others may get the entire Mueller investigation thrown out because Mueller was not nominated by the president in accordance with a Supreme Court ruling.
Our democracy is rapidly going down the tubes. George Will said our country's checks and balances will contain Trump. I don't think that's true. I think the course of Trump and the country has more to do with survival of the fittest. I think Trump is proving that nice guys finish last.
1
One has to wonder whether the process for which companies get exclusion from the tariffs also is determinant on how their CEO voted, whether they are in a red state or blue state, and whether some money is not being put surreptitiously in a 501(c)3 to help DJT. With this extortionist administration, who knows?
3
Interesting idea to engage in a trade war with the country that holds most of our debt. It’s the sort of interesting thinking that led this president into six bankruptcies. He personally profited from each while beggaring others, but usually not those that held the debt. He will lead America towards default. He will personally profit, somehow. The vast majority of Americans who are not multi-millionaires will suffer horribly, and he will neither notice nor care. China certainly won’t be hurt: he is hastening their replacement of America as the great beneficiary of free trade, and securing Russia as the holder of the geopolitical power balance. Not a foreign agent? He behaves like one.
4
For decades, I've refused to shop at Walmart because I've considered it to be a store front for China, destroying American corporations and putting Americans out of work. I've also been adamant about buying American-made as much as possible. And, I've asked to speak to managers dozens of times to beg them to stock American made goods. Or, at least products made in democracies. I've had a long standing tradition of buying only made in the USA for Christmas (or making gifts, myself).
All this time, I've been disparaged as an elitist for being anti-Walmart.
Many times, I simply decided to do without rather than spending money in a way I felt was bad for our country. If other Americans had done the same--insisted on buying American made, avoided Walmart, and spoken up asking for more American-made products, we wouldn't have lost so many American jobs and we wouldn't be facing a trade war.
That said....
I'm getting so sick and tired of MAGA as an excuse for putrid behavior that I'm starting to re-think my shopping habits. And, I hope Trump and his supporters realize that many people in countries that used to consider themselves our 'allies' are not so hot on buying American any more.
17
I will never understand how anyone thought, Trump, a man who bankrupted his companies rather than leading them through change, would be the solution to America's economic issues.
8
We need to let this play out. Either Trump and China will work something out and his base will cheer or it will hurt us and them and his base will see the great deal maker as the fraud he is.
Some national leaders threaten to start shooting wars to rally political support. Some leaders threaten trade wars for the same reason.
Donald Trump has done both.
Trump’s threats of military action against North Korea (temporarily on hold after Trump made incredible concessions without any from our adversary) and Iran (after Trump trashed a brilliant multi-national agreement containing Iranian nuclear ambitions) have been counterproductive.
Now, Trump finds that his trade war with China, sparked by reckless tariffs, is a losing proposition and that his effort to expand the trade war against Europe, Mexico and Canada is creating a barrel full of unintended consequences.
America is much better off when we use conventional diplomacy, joined by our traditional allies, in place of unilateral military threats or attacks. Redressing unfair trade and commercial practices by particular countries is done better by identifying specific abuses (like theft of intellectual property) and working through existing frameworks to stop or punish the abuses.
Some opportunistic politicians will embrace Donald Trump’s waving the bloody shirt to justify escalating military tensions and his jingoistic blame of foreigners for every problem in our domestic economy. Both actions by Donald Trump play well to the non-readers in the gallery.
Right, Senator Schumer?
The Chinese have been making cheap knock offs of American products for years. Those than can afford better buy better. The only people that will be hurt, once again, are the poor people. Seems they can never catch a break though for some reason they do get all the promises.
Does anyone wonder if this is what happens when everyone wants to sell around the world? And, America cannot compete on price with most of the world?
Does anyone wonder if we went back to the old days and primarily relied on American-made product if we might be better off?
Maybe this is normal runoff when you get a country that gets too fat and happy, meaning America, and every other Tom, Dick and Harry wants to build their nation through worldwide trade. Maybe, just maybe the problem is not fixable and America is doomed to deteriorate until we have no more middle class. Just upper and lower class. It appears to many that we are already headed in that direction now. And, that's with trade taking place worldwide already. So, maybe, just maybe that's not an answer either.
It's certainly beyond my skill set. But apparently many readers feel they know how to fix the problem. Best of luck...
2
About time. We need to have greater parity between US and China, especially if we are going to continue to import millions of third world people - welcome as they are
3
The logic behind Trump's seeking trade war is simple: china is a thief who is cunningly using international WTO rules to justify its secretively illegal trading activities and America should fight against this hypocricy. But the logic is only politically correct when Trump are needed to show his ability to make America great again to accomandate his political purpose. This is a bad signal when America a country of principles begin to bend its basic ethics flip-floppingly, the rest of the world will be turning their back on Trump's administration, not the Americans. As a chinese op-ed published yeste night, US dominance on many aspects of this world including international trade, is like an abundant bonanza which deserves to be tapped in a long-term patient way, but the current Trump administration wantd to abruptly make the best use of this bonanzo for short-term greed. China will not be and has never been coerced into capitulate. Let's wait and see how this spiraling tradewar will proceed.
2
Reality check usa doesnt need any products made by china we have techolgy to make are own waste. So why tariff on imports if we make everything we consume?
2
Tge reality is is that we don’t make everything we need. In fact, so many “parts” of things are made in China, that I doubt that any of us own any electronic or car or socks that aren’t somehow made in China.
Anything that disrupts global corporations is fine by me. Also, if cheap junk from China gets too expensive, someone will start making better stuff in the US.
1
Again, just another example of why voters chose Hillary by a margin of 3 million.
5
What a 180 the world has seen. Going from an American President that had absolutely no experience at anything and hating America to a President that has fifty years of negotiating experience and loving America the world is seeing a whole different America.
1
It must be so exhausting to run the country or any organization purely based on "rage," which personifies Trump. His denial is so deep, so entrenched and so ingrained that nothing, absolutely nothing will cause a crack in his delusions. Consequently, Trump is the loneliest man on this planet as he is incapable to form any sort of authentic relationship based on openness and the willingness to be vulnerable in front of another person. His wives are trophies and Ivanka is a trophy. He is an empty man, and at extremely rare moments he gets terrified for having glimpses of truth, which is instantly covered up by his rage.
8
It has become habitual for Trump to mess with all countries whom we are not supposed to and embrace the adversaries...
2
With the level of ignorance possessed by Trump and his minions, this will not be an adjustment of trade balances, but a crude act of selfish hostility towards, among others, our allies. As such, it demands a political not an economic response. One suggestion: Canada and Britain (etc.) implement the closure of american bases.
There would be the added benefit of reducing provocative military exercises worldwide.
11
Why is everyone ONLY focusing on what Trump and US is doing. I haven’t seen anyone talk about the technological theft that China has been running for decades? That’s worth Trillions with a T. Fact is past 3 Presidents have known about it and have done next to nothing!
2
It is so unfair to the liar-in-chief to impose the tariffs on Chinese goods after a company associated with that government approved a loan of $450 million to one of the Trump joints in Indonesia and after so many of Ivanka Trump's trademarks are approved.
Betraying allies in the world stage is one thing but stabbing your own lender in the back? Wait why didn't he do it to Putin, another banker? (Drum roll) The answer is the Putin lent him or his companies a lot more that $450 million!
1
Consumers will pay an increased price at the register for Donald's tariffs, as he ingratiates to his deplorable base.
The aware people of the USA should sue him (as well as impeach him, of course).
12
Why do we have to sit here and watch know-nothing Trump and his know-nothing economic advisors learn the hard way what happens when you start a trade war? And why the defeaning silence from congressional Republicans?
What’s that you say? Oh, right. They’ve made their pact with the devil.
I guess all those Trump voters enjoying their ginormous tax cuts are going to be in for a big surprise when prices start going through the roof and/or they can’t sell their soy beans or whatever.
2
When are the H1B visa abuses going to be addressed? Huge impact on American IT workers!
1
Domestically all these tariffs are going to feed through to increased prices for American consumers. According to the US Chamber of Commerce steel prices are up about 40% from a year ago while Canadian lumber is up 80% as detailed in a piece in this newspaper. This is going to impact everyone.
2
If Trump's policy works, then the major players in world trade affected by his tariffs will redirect trade among themselves to make up for the loss of the American market, with the consequent reduction in American exports. I don't think there are many cases of countries that, having surrendered or lost export markets for whatever reason, find it easy or possible to reverse position later on.
A not insignificant but likely consequence of Trump's policy if sustained is that, if America withdraws from world trade in a significant way, it is likely that the dollar will no longer be the currency for world trade. The pound was an international currency until Britain's presence in world markets declined. The consequences for America, less able to export its inflation as a result, could be significant.
7
That's okay because, as Creamsicle Clown reminded us, "Trade wars are a good thing."
6
Much of the justification being made points to the need to protect American-owned intellectual property. Wasn't there a significant portion of the TPP agreement that specifically focused on protecting IP?
3
The financial community thinks Trump is just bluffing. But does anyone really know what is in his mind? Does he? And does it matter?
Here is a clue though. How many companies he has bankrupted before? But his supporters may say: but he is rich and richer still. He has no doubt amassed a bundle of loots alright... At the expense of his partners and subcontractors. And people, I have news for you: America is his subcontractor now!
Let's put Trump aside for a moment and look at history. Did people really want to start WWI? Did people want a nuclear plant meltdown? Or the great recession to happen? No one wants any of these man made calamities. No, all these didn't happen by design. Yet they did because of either a cavalier attitude or worse one participant thought he was smarter than his opponents. And the ego got stuck once he hopped on the "tiger's back."
Now, Trump thinks he can ride the tiger. And his supporters cheer. Worse, Trump has managed to isolate America from the rest of the world... While Putin is laughing his behind off!
12
Trump works for Putin who is directing our foreign policy. Easy for anyone to conclude who is safer for us because Putin is competent while Trump is not. So let's submit and if we prefer another leader to replace Putin, an American for instance, then in 2020 you could vote for a qualified person with wisdom and tact who is honest. That eliminates the past 3 presidents. But there must be someone amongst our millions.
If not I like the King of Jordan. He's very adept. Or Justin!
3
Did Trump really think the rest of the world was just going to sit down and let tariffs be imposed on them. Trade balance happens when you have "things" the rest of the world wants to buy and the US does not have those things. The rest of the world is doing their own deals and a new world order is being started without the US. Interesting times ahead.
14
I’m no supporter of trump, and am very liberal in my views, but we are doing the right thing imposing these tariffs.
Why isn’t there the same uproar when China imposes forced technology transfers for American companies that want to sell to the Chinese market?
9
Whataboutism is preposterous while Trump leads us to catastrophe.
Making Wal Mart expensive again.
14
Lots dire predictions here Trumps trade policies will hurt his base. The same predictions with his coal policy and efforts to bring jobs back were heard...well,the base is doing quite well along with every other demographic in the US and Trumps economy is #1 in the world at the moment.
4
Making goods dearer for people who are already struggling to provide for their families. Every other country in the world that has the US has imposed tariffs on will bite back and make new deals without the US. I would wait a little bit longer before boasting.
2
Exactly WHAT jobs have come back as a result of Trump’s policies? Coal mining is dead, but at least now they can pollute their rivers and streams because of him with what little output they still have. Steel is nearly dead, and because of his steel tariffs, that industry will become another casualty. The oil industry’s collapsing under the weight of natural gas and electricity/lithium ion battery storage expansion. Yet he allows them to drill offshore with impunity.
The job market expansion, as in so many instances in our past, is occurring not because of Republican policies, but because of Democrats’ policies established beforehand. They set the stage. Trump is now destroying that very groundwork.
In order to avoid tariffs, all that China (and the the other potential tariff countries) need to do is the following. Allow US products the same level of access to Chinese markets as their products have in the US. It is really that simple; Trump is not very complicated.
5
Good point. Unfortunately, Trump's presidency is a stunt presidency. Once these tariffs start disrupting the economy, he'll fabricate another stunt to blame someone else.
Far more important than tariffs on Chinese goods, whether individually justifiable or not, would be weaning us from our dependence on Chinese computer chips. One does not need to be a conspiracy theorist to believe it is likely that many of the chips which facilitate the operations of our military's command-and-control apparatus, our electric grid, our financial structure, and personal electronics from your cell phone to your car to "connected" home have chips with embedded code allowing the Chinese government to wreak absolute havoc on America, either during war or as blackmail to achieve its goals.
Personally, I'm not about to trade away America's security so that Apple and other large corporations can make even more profit. And I would be much happier if President Trump spent less time playing with his mini-tweeter and more time studying important issues regarding our security. Instinct and intuition have there place, but only as tools predicated on actual knowledge and relevant experience.
8
Apple's chips are made in Korea.
This trade war with China is still reversible if both sides choose to sensibly do so. Else, US simply can not afford to go alone since a tough China may gain an upper hand and the lead could widen further each year.
If it turns out to be an irreversible trade war, then hopefully we shall be sensible enough to conclude NAFTA and commonalize the China tariff at NAFTA level. If the same option is available with EU, it is even better. If TPP also concur for commonalization of China tariff, outcome shall be decisively in favor of US led free world.
Hopefully such a prospect, if found credible, would make China sober up and settle for fair trade.
What makes you believe that this administration is able to forge an international alliance against China?
In essence, all of those potential allies ate now rather to side with China rather than with the US. So if there is any alliance building up, it's everyone vs. the US. Well, maybe safe for Israel, Russia and North Korea.
"My ememies enemy is my natural ally" - and with all that trade hostility emerging from the WH these days, new alliances are going to build up, just that that the US will not be a partner to any of them.
It's going to be tough and cold and lonely out there without those allies the US had in those good old pre-Trump times.
1
If you prefer Chinese supremacy over Europe and their emerging Communist order, go for it.
Point is trade disputes between us is only at 3 volts level where political and civilizational issues charge us at 220 volts. The new economic order that will stabilize after these perturbations will hopefully resolve these matters in an equitable manner.
Our trade policy reflects personalities rather than thought. The W.T.O. has long had procedures aimed at the practices used in China such as subsidized production costs giving seller comparative advantage, but they are difficult to pursue, but have in some cases worked. The underlie issue is not Chinese practices along, but the shifting to Asia by existing U.S. firms following 2000 entry into WTO by China causing soaring Corporate profits and declining American jobs – no policy maker wants to touch that issue or attempt to collect those taxes due, often hidden offshore. So a Trade War ….
6
Why don't they impose tariffs directly on Trump's business interests? America's voters aren't always great at connecting the dots. But Trump will jump like he sat on a whoopie cushion the moment he sees his own investments taking a hit. Meanwhile, he could care less if Americans end up paying more for Canadian, German or Chinese goods, because his voters think he's sticking it to our allies and trading partners, and being resolute, and they will LOVE him for it. If they see their bills go up, they'll blame our trading partners, not the guy who started the trade war.
14
Could we have addressed this through diplomacy instead of a trade war? We'll never know since Trump decimated the senior staff of foreign experts in the State Department. The most likely diplomatic achievement will be to cement an alliance between Russia and China.
9
For those at the top of the pile, life has been good. The free global movement of capital and labour, of goods and increasingly services, has ensured that the rich have gotten even richer.
Meanwhile, the poor have got poorer, while those on middle incomes in the biggest cities can no longer afford to buy their own homes, are saddled by debt, are sick with worry.
Our population of 7.4 billion will be almost ten billion by the mid century. Robots will eventually replace not only maids, nannies, cleaners, waitresses, slaughterers, taxi drivers, and fruit pickers, but pilots, sailors and soldiers, teachers, lawyers, doctors, journalists and politicians.
Putin, Trump, the Clintons and their ilk will rule the planet. A tiny, tiny super elite will reap all the benefits, own all the land and resources, have all the money.
The rest of us?
9
China has certainly stolen our intellectual property, trade secrets, and blocks foreign competition within it's borders. The U.S. has not taken strong enough steps to try and stop these abuses. However, American corporations also have used cheap Chinese labor to offshore jobs and cause wage stagnation here in the U.S. Supply chains now rely on Chinese imports because U.S. companies were so interested in lowering production costs at the expense of American workers. Imposing tariffs is not going to solve the problem. In the long run, tariffs are a tax on consumers, and the cost of goods will rise. Farmers are already under pressure due to low commodity prices. These tit for tat tariffs are only going to exacerbate this situation. Mr. Trump is also alienating our allies, and seems to think America can bully every nation in the world. This is going to end badly for everyone in the long run - but China I fear has the upper hand. They have access to many more consumers than we do.
21
Maybe some of us are quantitative by nature and others are not, but I kept waiting for this NYT coverage to include a discussion for the balance of trade numbers, broken down into goods and services. The NYT has been absolutely ground breaking in its combined photography, audio blog, and written discussions on some topics. I now challenge them to pioneer some means of presenting numbers to its readers, in a manner that can be aggregated on their personal hard drives (if so desired), or at least seen in a spreadsheet/graphical format.
8
Another Trump inspired disaster that will be supported by Republicans in Congress. Trump’s primitive instincts of fighting for survival are not the skill set needed as US President.
Trump does not understand international trade. His statements on US trade, overlook how the US protects much of its own industries by unfair trade barriers. The US beef and sugar industries, to name just two, are heavily protected.
If this Trump trade war continues, we know Trump will blame US trading partners for retaliating, rather than accepting any blame for the industries that will be hit hard.
It seems feasible that Trump is starting a trade war to deflect and distract from his growing issues around Russian interference and investigations of the Trump Foundation.
19
So how’s Trump’s policies working out for his supporters? Will they start to set aside their contempt for the Democratic Party to put food on their table? Let’s hope so before it’s too late.
1
By alienating China, the US will miss out on what may be one of the biggest infrastructure projects ever untaken. One belt - one road.
https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parlia...
China will win any trade war,( The US may have some short term benefit) but when the US eventually wakes up, it will find itself left behind in an economic quagmire.
9
After the dust settles on his many trade wars, let's see what concrete investment Trump gives to manufacturing industry. My bet is zilch.
7
There is one Company in the US which will certainly lose - Walmart! The extremely tenuous part-time workers will lose their jobs. The shelves will be empty of cheap goods and therefore customers who shop there will disappear. They are not going to appear in other stores either because they can ill-afford the goods in them. And the Waltons? Boo- hoo! They will be poorer by a few billions!
9
Yes, trump can pound Canada into the ground with tariffs and re-aligning our economy with reliable and trustworthy trading partners will take time and we will suffer. What an accomplishment for Big Tough Trump's America: it took down its best friend and trading partner.
We're starting to think outside this madhouse box that trump's put us all in: perhaps if we start doing things like expropriating US pharmaceutical patents, the US pharmaceutical lobby, who owns Congress and mostly Republicans, can put a stop to this absolute madness.
https://www.macleans.ca/opinion/why-pharmaceuticals-could-be-the-prescri...
5
Now that we have their attention we can negotiate fair agreements... this is the beginning not the end.
What is the anti Trump alternative? Keep exporting 375Billion and millions of American jobs? After the screaming comes the deal making... this is just the flirting and President Trump is world class. Get used to winning.... again
3
In addition to all the jobs in farming, etc. that will be lost, what about tourism? I don't know one person who will travel to the US this year; in previous years we ( our family and friends) would have visited at least 2 or 3 times. We will take our travelling and shopping dollars where we are welcome. We do have choices for winter vacations in warm weather: the Caribbean, Mexico, parts of central and South America, Portugal, Spain, Greece, etc. We will politely turn down the opportunity to visit the US until Trump leaves the White House. It is that simple.
69
Yep, China is only the beginning, the rest of the group, i.e,. Canada and the EU will have their own retaliatory tariffs in place July 1 and then "let the games begin". Tourism in America employs directly and indirectly 10 MILLION people and I cannot even fathom the dollar amount that is injected annually into the U.S. economy.
Now that The Trumpster has alienated pretty much everyone, I gather it will only be a matter of time before all the governors of those southern and mid-western states that rely heavily on tourism will be knocking on Trump's door at the WH wondering what happened to all that business(and the jobs that go with it).
Perhaps a new tourism campaign focusing on North Korea and Russia might be the answer.
1
I'm happy you can afford winter vacations. I can't afford any vacations. And so it goes in NY SSR.
Tariffs coming out of a brain trust that created a sound, sophisticated, well thought out industrial policy might be one thing, but this is just TrumpTheChump shooting from the hip to score some cred with blue collar workers.
Unfortunately the Dems took them for granted for over a half of a century - the loved starved working class would kiss a frog if it whispered sweet nothings to them, and so they have. But the Democratic elite were all too happy to sell out to the Bankster interests of which Hillary was kind of a poster child.
We could have avoided all this mess if she would have simply had picked Bernie as her VP but Bernie doesn't sit will with the Bankster classs, so what have we got now? Butkiss, and devolution of what's left of the American century.
14
The brain trust you reference would be good but no longer exists. We’ll have to build a new one. In the meantime it’s a start in what will be a protracted and necessarily painful period of readjustment
1
I do find it strange that often those that support Trump are those that stand most to lose by his actions. A trade war will hurt the Trump base more than most, gutting the ACA will hurt
Trumps base more than most, removing environmental controls designed to address climate change will hurt us all but hurt the Trump base first and hardest.
19
Far more important than tariffs on Chinese goods, whether individually justifiable or not, would be weaning us from our dependence on Chinese computer chips. One does not need to be a conspiracy theorist to believe it is likely that many of the chips which facilitate the operations of our military's command-and-control apparatus, our electric grid, our financial structure, and personal electronics from your cell phone to your car to "connected" home have chips with embedded code allowing the Chinese government to wreak absolute havoc on America, either during war or as blackmail to achieve its goals.
Personally, I'm not about to trade away America's security so that Apple and others can make a profit. And I would be much happier if President Trump spent less time tweeting slurs and more studying important issues regarding our security.
16
I know this policy affects us all; however, I hope the Chinese are strategic and hit those States that support Trump.
25
I have read that there can’t be a winner during a trade war. When it is one against everybody else, I just wonder.
2
Gee this trade war will do wonders for the job growth in the US coupled with kicking sand in the face of our best allies in Canada.
25
There is a silver lining in all of this for Canadians. Most of us did not bother looking at where our shopping came from until recently. As it turns out, a significant amount of what we have traditionally bought in our day to day lives is American: produce, canned goods, hardware, and on and on and on. We simply bought what we needed, whether it was Starbuck's Coffee, washing machines, Heinz Ketchup, Hellmann's mayonnaise, Anthropologies clothes, sleeping bags, etc. without much thought to its origin. Shopping is now getting interesting as we are finding that when we look at the products in our stores, we do have choices and we do not have to buy American. So oranges and avocados from Mexico, coffee from Canadan chains like Second Cup and Blenz, clothes from Roots and Aritzia. Cosmetics from Europe. hardware from the Canadian store Home Hardware, etc. Without Trump's nudge, we might never have realized that we can source pretty much everything from non American stores. Once this trade war is over, if and when that occurs, will Canadians feel inclined to rush back to the US or will we continue to be loyal to our own businesses and those of our international allies? I think it will take a long time to convince us to return to the shopping habits pre the G7 in Quebec.
2
Trump was elected to solve problems. All he's doing is causing problems.
36
I’m not sure who voted for him to solve problems? That’s an oxymoron. The man hasn’t done any good in his life, only harm.
"Trade wars are good and easy to win"... we'll see about that.
19
The Trump Administration focus on transaction by isolated transaction dealings with international trade and geopolitical dispute issues is deeply flawed as illustrated by the sequence of the Singapore meeting followed by the commencement of a serious trade confrontation with China within hours after President Trump returned from Singapore.
The meeting with the North Korean dictator and the prospect now of any useful improvement in North Korean actions all depended and will depend on the persuasion and pressure that China asserts on North Korea.
Can anyone now assume that China will now use its good offices with North Korea to seriously further US objectives concerning North Korea? Did anyone within the Trump Administration even try to connect the dots between the North Korean and China trade issues at this juncture?
Further, has anyone in the Trump Administration considered the implications of aggressively confronting and overtly threatening both the other G7 nations and China over trade within one week's time?
18
Let's pause for a moment and consider the great powers in the past that have opened up wars on multiple fronts. And how long thereafter they survived.
20
If an economics disaster falls on the 99% (essentially the wilderness to the 1%), does it make a sound?
11
Who knew international trade could be so complicated?
11
In case you missed the first salvo in the trade war: Trump blocks exports to China's largest telecom and they go out of business. China retaliates by buying soy beans from Brazil and US farmers sell to customers that would have bought from Brazil. We can make anything Chin exports to us but they can't do the same. Oh, and by the way, rocket boy from North Korea flew in on a borrowed China Air 747 built in the USA. We're still the nuclear power in trade and the others have sling shots.
4
Nearly every economist disagrees with you.
Let go.
Disagreeing with Don doesn’t make you a liberal.
We liberals promise.
Good grief.
I'm not sure your "Trump targets electronics" in the graphic is very accurate. My somewhat cursory review of the list led me to believe they were mostly targeting stuff made of steel and aluminum like shaped steel, heavy equipment, aircraft stuff, and machining equipment.
4
The focus on "prices paid" on imported goods belies the price paid by the American Middle Class who have been gutted by unfair trading practices by China, other East Asian countries, and Europe. Let's not forget the disaster which is N.A.F.T.A.
4
Trump is obviously expecting China to blink first.
But, given the months ahead ,short term outlook of Trump vs. the multi-year long term outlook of China, that may not happen.
I doubt Trump has a plan B if his bully tactic fails.
10
It's time for business groups like the Chamber to abandon the Republicans and make their views known where it counts--the pockets of Republicans running in the midterms
15
Hoooooboy, this winning is painful. When will the winning stop? I'm not sure the country can take much more.
12
The saddest part is that there are many Americans who see this bullying by tRump, to be just what America needs and will support him despite the negative consequences that will befall them.
Talk about voting against your own best interest...
23
This fear-mongering use of "trade war" lies at the foundation of the left's complete lack of understanding of business negotiations in general and international trade specifically.
At each nanosecond of the rational trade arbitration between China and America, MSM has hysterically denounced our President's goals and commitments, rather than defend our rights as an international trading partner (the strongest of them all) to be treated fairly.
In the past, especially the most recent past, other administrations have buckled weakly and allowed China to ravage our intellectual patents and our expertise. It about time we had a leader who not only knows what America is and he supports its workers, but one who knows how to deal.
10
OK, but why everyone else? What good does a trade war with Canada, Mexico and the EU do for America?
1
In retaliation for tariffs that China is imposing on the imports of Harley-Davidson motorcycles which are made in Wisconsin and bourbon which is brewed in Kentucky, will the United States impose a tariff on firecrackers that are made in China before July 4?
8
Can someone explain why the US doesn't play some of the high cards it holds?
Take China's theft of intellectual property by (a) espionage and (b) denying Western forms access to the Chinese market unless they transfer technology to designated Chinese companies.
The problem with (b) is that US companies are reluctant to bring trade complaints because winning them would be Pyrrhic victories. They would win the argument but lose access to the Chinese market.
The Us might retaliate in two ways. (1) Punish US companies that make such deals. That should give them backbone transplants. (2) Punish Chinese companies and individuals that improperly benefit from such deals.
True, disentangling the facts would be difficult, but a standby power (and maybe a foreign trade court) to prosecute such cases would have a chilling effect on such deals or actions.
The beauty of this suggestion is that we wouldn't need the help of the Chinese government and the accompanying escalating war of words.
6
Corporations have moved production to China for profits, they may also move their registered offices for profits...
Epitaph on Boot Hill: I'da gotten the drop on you if'n I hadn'ta shot myself in the foot first.
9
What is wrong with this president is that he thinks he can get away with anything, but that is only because he knows that American jobs and the economy will fall on the "less than rich". I am beginning to think that what he does is not thought based, it is organ based...
9
I'd love to hear how Trump's personal bailout (on behalf of Ivanka) of ZTE affects these tariffs.
28
Message to Trump, The world is much bigger than you are despite your red button. If you fight the entire world
without a friend the world will crush you and we all will be collateral damage, but I know you do not care as you have made a deal for Trump palaces in Moscow and Pyongyang.
7
Does any of the trump's tariffs affect what business his companies are doing with China, thought not!!!!
9
The old axiom that there are "no winners in trade wars" has never rung more true than now. What happened, did Donald flunk his course in economics?
On paper and simplistically, sure by putting tariffs on steel and aluminum sounds like you might create or preserve jobs in those industries, but we have long closed our steel and aluminum factories. We will have to rebuild them! That is going to take time and money. Tariffs on steel and aluminum are really a dumb idea.
8
We're still waiting for the survival instincts of the Republican voters to kick in...waiting...still waiting.
12
With friends like trump who needs enemies or enemas?
10
Are we sick of winning yet!??
25
Do the future job workers pay todays taxes and to whom will they owe allegiance? Will the GOP claim somehow, any and all "future" jobs are of GOP devvising and that anyone who thinks they should keep their jobs owes loyalty to their party? One gets the impression of a GOP stck forever in the past and dreaming of poermanently owning the workers opf the fur\ture, even \as it's own people claim that fewer and fewer people will be even needed? On the one hand-t\a trade war id needed to protect "future jobs" but, at the same time-there will be feewer and fewer jobs needed by modern industr--thee standard GOP and Industry excuse for moving factories and work to forteign shores.
(Actually both parties often are guilty of this double think-double talk)
I hear the Democrats congratulating the President but, I can hear only of the pain involved and when he hurts his "opponents" badly--instantly a gentle Trump is by their side to aid them(ZTE) to ensure thei Chinese jobs-many of which involve stealing and robbing US business- and makes sure none of the poor foreign "bairns" are injured and they get their jobs and income back,. . .What in God's or the Dollars names is going on?
3
I'm eagerly waiting to hear just what Trump will come up with to blame the Democrats when the Economy tanks.
12
I can't think of a more stupid person ever, who's in charge of the most important things......you've heard him speak right? sigh...............
21
The world only needs someone as stupid as Donald Trump to enter in another set of silly "an Eye for an Eye" type of strategy, seems that the understanding of simple things to the US President is to much...
6
What's more important....Honoring your campaign promises or honoring the The Oath of Office:
I do solemnly swear (or affirm) that I will faithfully execute the Office of President of the United States, and will to the best of my Ability, preserve, protect and defend the Constitution of the United States.
This says it all......
8
" The U.S. tariffs will fall on 1,102 categories of Chinese goods, a list that generally focuses on industrial sectors that relate to the country’s Made in China 2025 plan for dominating high-tech industries, like aerospace, automobiles, industrial machinery, information technology and robotics, the administration said. "
China is planning to leave the USA in the dust by supporting the invention & development of future rechnologies. eg. ZTE will not need US made parts in the future. A piece of paper from Navaro-Trump et al will not change the direction or appreciably slow the pace of China`s plan to be not just the world`s largest manufacturer (as it now is) to become the world`s major source of high tech and developing high tech goods.
In the meantime the Trumpists wallow in the swamp of their ignorance and worse greed for a short term advantage over their fellow citizens.
10
China steals our technology because they are incapable of inventing it themselves. This is precisely the advantage of the USA and Western Europe. China is the world’s greatest copycat.
More Wal Mart closing then Sears and JC penny combined!
1
China uses state subsidies -- hurray for them. All countries do this more or less -- look at our support for wind/solar followed, under Trump, by a switch to support for coal.
I'm particularly upset that our government is upset with China's support for robotics, A.I., and other high-tech. This is wonderful for all of humanity (assuming Terminator was fiction!) and I wish we were increasing the support of our research and development in these critical areas for this century and beyon.
5
I think we're all overlooking the real issue here . . .
Two things are basically true.
1. The Chinese HAVE been stealing lots of intellectual property, and...
2. A trade war is a ridiculous and blunt tool to try to address it and will almost certainly fail which costing consumers and business vast amounts of money.
But the real issue here is that Trump has driven out or replaced much of the top talent in the Commerce and State Departments, and he's alienated so many US allies, that putting together a better, more effective policy to address Chinese IP theft is now beyond Trump's capabilities.
18
Finally, a media outlet that mentions the North Korea situation in an article about trade issues with China. If Trump thinks he is going to engage and win a trade war with China even as he is trying to negotiate an end to nukes on the Korean peninsula he is a much poorer negotiator than I could have imagined.
19
Or Trump could do what Obama did...which is nothing.
Since the Chinese are overall smarter and more strategic than Trump's team, it's hard to see how this turns out well. With an eye on our midterm elections, Chinese tariffs are first targeting American agricultural exports.
But here is the silver lining: if all this leads to a worldwide economic recession, Trump's political career will likely be toast. While it would be a rather high price to pay for pest extermination services, in the long run it might be worth it. The foundations of American political culture are now being eaten away at a rapidly increasing pace.
18
The uncertain chaos of Trump's economic and tariff policies will harm the American economy much more than it will help the very few. I feel it will raise the cost of
goods to American consumers, lower the standard of living and rate of growth, and increase the rate of inflation. It is just a crude poorly conceived ax, a very blunt instrument that will damage America in both economic and diplomatic spheres.
12
The rest of the world hasn't responded yet. So far China is just as lonely as US. Trump may make up with other nations and fight China together. Who knows.
1
Mexico and Canada already have responded, and the EU has too.
Do you really think that anyone is inclined to side with Trump these days? If you do, smoke something different.
It's not China being alienated, its the US.
7
Seems to me that the only winners in this trade war will be the bankruptcy lawyers.
11
well, trump owes them.
3
Farmers and workers of Iowa, Pennsylvania, Florida, Texas helped elect Trump. Now they must reap what they've sown.
14
The next person who says that our Boy President has a coherent trade policy vis a vis China should hurry over to the Executive Branch Job Fair and get a position in his administration.
8
For most of the past 2200 years China has been a socioeconomic political educational technological scientific diplomatic and military superpower. Chinese President Xi Jinping has been designated a "core leader" whose thoughts are worthy of study who can rule with the Mandate of Heaven for an unlimited period. By contrast Trump is a naive novice governing political immature intemperate insecure entertainer.
About 20% of the human race is ethnic Han Chinese. While China has the nominal 2nd GDP economy, with 1.4 bilion people it ranks #79 on a per capita basis behind the Dominican Republic. China is aging and shrinking with a massive male gender imbalance. China has as much land as America with 4x as many people. Chinese labor makes cheap goods for American consumption.
1
I'm worried about their 2200 year old culture and what it means for us. It suggests, to me, that the Chinese know a thing or two. We do, too. On this basis there is room for a new relationship based on mutually acknowledged economic power. If we let them steal less, they would number #179 in per capita consumption
2
Trump is so hungry for war, he doesn't care if it's the non-shooting kind; he thrives on conflict and bluster--he is oppositional-defiant, and like all with a personality syndrome, he puts his needs first, blames others to justify his actions, and twists logic to make his actions fit as he glosses over obvious flaws.
Trade balances are a single measuring point of an economy's activity--trade balances don't measure output, productivity, wealth grow, savings, investment, or innovation. Certain import items, chromium, for example, contribute to profits and have no US source. Other items imported as taxed, but they were only assembled internationally.
This is another example of Trump taking a complex, interconnected relationship and oversimplifying an issue to invent a conflict by using the worst approach available--one tied to publicity, media--and the joint link between Trump and the media, of insufficient truth and lots of missing details.
Add Republican complicity! The result, the famous Trump fugue state: the cycles of lies, blame, and smears, the language of war and flag-wrapped incompetence, the grandiose expression of ego---and a balance sheet of hidden costs scattered with the mature US economy, the effects emerging (like higher gas prices!) over time--met with silence as victory is an allusion that Trump defines and shapes as a "win."
It is stupidity that declares its avoided path as genius.
25
I'm not opposed to tariffs on Chinese exports, although the specific items included have me a bit puzzled. Why are many Chinese made consumer goods for the most part exempt? Isn't this the lion's share of US Economy now? So isn't this what we need to make more of home?
And did US policy makers really think that China would stick to making simple widgets and not graduate to the highest, most advanced manufacturing capabilities - just like we did? That cat is out of the bag. We might slow it down - but there is no stopping it now.
What Trump seems to be asking China to buy more of is raw energy and food - low value added value products that might forestall some suffering for the coal industry and help farmers, but not really put our country is a more competitive position.
We actually need to making stuff like hair dryers in the US again.
5
Unless you're willing to pay US workers Chinese wages then what you propose is a HUGE cost to American families. Hair dryers (and baby strollers, laptop computers, flashlights, household tools and appliances, etc, etc) would vastly increase in price if they were made in the US. And with the lowest unemployment rate in 18 years, it's not like there will be a flood of new jobs increasing people's wages enough to cover it.
Also, since working people spend a much larger percentage of their income on consumer goods than rich people, your plan would disproportionately impact working people.
21
Everything Trump is doing is forcing his opponents to accept his deal. Perfect example, the current immagrarion issues. He couldn't get his one of his (wall bill) to get passed. So he changed tactic.
This is hilarious. The one-percenters in this country are more afraid of Trump and his moronic tariffs (I doubt Trump can even spell the word) than they are of losing their hallowed money--now this is a reality show I can watch :)
2
Re: Rosamaria
Sure, I’m tired of buying cheap Chinese junk. But US corporations are not tired of selling it.
Why are US corporations not being widely condemned for their role in the trade deficit?
28
You are absolutely correct. I've yet to see a Chinese government run store in America. These are American capitalist selling out America.
10
Consumers will wind up paying for Trump's idiocy. Also, Trump will eventually cause the stock market to tank.
7
Oh boy! Chaos! Good times for Wall Street speculators! Eight years of President Obama were so dull and boring. All he did was save the economy and restore jobs after the 2008 near-apocalyptic financial system meltdown.
40
Attention Walmart shoppers....
18
Traitorous fools! China aims to take your jobs and your children's, too. This can only occur with the self-destructive complicity of the US. The US must enforce a new trade regime, period.
Everyone is so worried about Russia...Russia is a gas station with a cybercafe full of hackers. China is an existential threat. Do you read anything?
Appeasement didn't save the world from Hitler and it it won't save us from the Chinese. May a new generation of leadership rise up and carry forward what Trump can only initiate before he's gone. Have you noticed the wholesale destruction of industries over the past 30 years? The jobs go to China, not Russia.
8
Re: Tigershark
You neglected to mention the role of US corporations. Before China’s HUGH markets spawned paroxysms of greed in US corporations,they were investing in Mexico’s maquiladoras. Once China became a viable locus, the maquiladoras went away, and we got floods of Mexican nationals coming here. NAFTA was depopulating the rural areas because the small producers could not compete against US subsidized corn, and the maquiladoras had disappeared. The same story is being replayed with CAFTA (Central American FTA). It all fits in with a basic American meme of blame the victim.
4
That's the problems. These people don't read, they’re not informed of what’s happening around them. They don't see what China has become because we in the West has let it get away with murder and what it hopes to become unless we take concrete steps, such as the president is doing. My heart breaks reading these many misguided comments here as they seem utterly treasonous.
2
The trade war is back on? Didn't Mnuchin declare the trade war was on hold? I guess Trump felt like he deserved a bigger bribe, or Mnuchin hasn't been kissing up to his boss enough. Note how Trump supporters seem to not even notice this second about-face in two months. Truly, they are what Orwellian societies are made of.
"We are at war with Eastasia. We have always been at war with Eastasia."
8
Dear NYT: the headline should not read "US and China expand trade war," but "TRUMP and China expand trade war." And is in most wars, it is the "small people" who will pay.
30
Okay, all this winning is just too much for me. Please stop now.
31
This tariff debacle started by Trump is another method of isolating us. Everything I have read on the NYT indicates that the tariffs that Trump is taking issue with are low or non existent. If this information is factual, Trump must be trying to isolate our economy as he thinks he is strengthening our business position. Hitler did this in the 30's.
2
Disruption and confusion is Trump's game. He will sacrifice American jobs and lives to protect his own skin. Trump is an anti-leader.
8
Trump's trade war is going to be more destructive to the US than war with North Korea! The economic costs are going to be enormous for both consumers and business. Farmers are really going to feel the pain. Conservatives and religious voters are going to regret putting aside their scruples to elect a moral degenerate to the White House. The payback will be nothing less than an Act of God, a fitting judgment for their hypocrisy!
5
Another dumb idea form a dumb administration. All those white right wing Trump supporters are probably cheering as Trump is setting them up to lose their jobs over a trade fight that shouldn't be.
15
Pretty soon there won't be anyone in the world we're not in some sort of conflict with ... in a bizarro demented way, it sort of explains why Trump wants to cozy up to Putin ... no one else wants to have anything to do with him.
15
Two - three places we may not be in real conflict with: Russia, North Korea, Philipines.
8
And Saudi Arabia, who we befriend and sell murderous weapons to, even though they are every but the state sponsors of terrorism that Iran is.
If you spit into the wind, it comes back into your face.
Hey Donny boy, the game is just starting. Wait till American industries start complaining that they'll have to sell those brand-named $ 2.00 shirts made in China for $ 125.00 instead of $ 95.00 dollars, and those I-Phones for $ 1600.00!
7
Here we go again from those who opposed Trump presidency, blaming the administration for trying to protect the U.S from China's massive intellectual property thefts that cost this country over $300B annually.
I don't support Trump on a lot of things. However, I support him on this.
Fight this president on other things, this should not be one of them.
2
While few would deny that China hasn't always played fair, the problem imposing tariffs is that they can easily end up hurting more people then they help.
5
So how to steel and aluminum tariffs stop intellectual theft exactly??
2
Tariffs simply do not remedy or mitigate intellectual theft.
2
Yep, buy your electronic devices, laptops, PCs now because you won't be able to upgrade once this all kicks in.
3
China's theft of intellectual property is simply not sustainable. China's inability to innovate and its willingness to steal the compromise that cultural weakness sees it now being hoisted on its own petard. As the US buys much more from China than it sells to China the US has an inherent advantage in any trade war. the US is the world's Innovation generator while China is an innovation failure is another inherent strength the US has Visa V ie China. It should be interesting to see China's travails as it attempts to sell the c919 outside of China.
5
All Trump cares about is building Trump Towers and golf courses in Russia and North Korea. If Americans have to suffer a bit to accomplish that, then that is little enough to pay for all the jobs he will be creating.
He promised to create more jobs, but he didn't specify the country they would be in.
7
Time to re-embroider the hats to read:
MA<C
3
Can we get that other stable genius , Justify, to handle trade policy.
5
Is there no recourse? Must we all just sit by and have DJT drive our economy into a ditch for his own selfish reasons?
When did one person get so much power? Where is Congress?
9
Vote in November.
5
I am thoroughly confused. Are these policies from the same administration that wants to rescue ZTE?
11
Too little too late. China is too big to fail.
1
Whatever will Wal-mart shoppers do when prices of Chinese goods go up?
5
I refuse to buy anything made in the USA because it is junk. Everything I buy or intend to buy comes from Asia or Europe simply because I want the best. I don't want a five pound cellphone or a fuzzy glass TV and Never an American Car. The US has become my economic enemy.
9
When elephants fight it is the mice that are trampled. Welcome to another chapter in Making America Great Again.
3
“Pay me and I will stop the trade war.”
4
So 45 pulls out of TPP then goes to war with China. That’s like surrendering you weapon before you get into a fight.
Brilliant!!
9
So let me see, we have higher inflation that is driving up interest rates and now tariffs which will exacerbate the trend. Meanwhile, wages are stagnant and consumers are caught in a squeeze between higher prices and barely budging income. All of this is placed at the feet of Trump and the GOP with their out of control tax cuts for the rich and spending that does not even repair our infrastructure or provide for affordable housing. A world wide tariff war will be the straw that breaks the camel's back not only for us but countries around the world. Are we having fun yet? So much winning.
5
Thank you China for your statements stating you do not want a trade war, and how a trade war would be bad for the world. Over the past decades since the late 70s you have been willing and open to learning about American finance and economics, and it has benefited both countries as we have learned from each other and made the world a better, safer place. You are correct in your statements. Unfortunately, in the United States we have an element of people, a minority, who are willing to pay more for goods and services if it means public policy from a President (sic) and Attorney General who push social and economic disorder and segregation and exclusion. This is a diversion in our country, and will not last long. Be patient....
3
Good, China has shown it will not voluntarily give up it's unfair status as a "developing nation" so we must make in their best interest to do so by pursuing punitive measures. Even if they hurt us a little in the short term they will be much worse for China because there is no one they can turn to to buy the quantity of goods we do, but there are plenty of countries that can manufacture the same stuff they do at a similar cost.
3
So how exactly does it help the US worker to simply relocate the factories to other offshore sites?
4
This is not a new trade war, this is a response that's so overdue that it's been forgotten about. The Chinese already have punitive tariffs and "delays" that prohibit imports. This should have been done more than a decade ago before we got used to their economic warfare and forgot they're doing it.
3
The critical flaw in Trump's thinking on trade and many other foreign policy matters is the notion that the rest of the world will always roll over because the United States demands they do so.
Every country, including the United States, has their self-interests to attend to and if they are attacked--be it militarily or economically--they will retaliate. As a consequence, it should come as no surprise that China, Canada, and every other country affected by Trump's tariffs is preparing to imposed tariffs on the United States, if they have not actually done so already.
13
What's American industry complaining about? Isn't the tariff amount they would pay equal the amount of the tax cut they received? It's a wash.
Besides, it will be trump voters who will be hurt most, which is a plus.
2
As usual, there is no policy, plan, diplomacy, rhyme or reason with this administration's actions. Trump's non-sensical behavior will never result in any lasting or substantial benefit to the American economy. Up to this point, the US is economy is still riding high on the steady and intelligent handling of the Obama administration. Just give Trump another year, he will have undone the good Obama did and set the economy on a crash course with disaster. Stay tuned.
5
What's the difference between a tax and a tariff both guarantee the average American pays more.
3
One can argue that Trump uses wrong methods, but one can not argue that Trump fails to address an important problem: The persistent trade deficit of the US
1. In Econ 101 :Trade deficits are compensated by capital influx.
American consumers get cheap television, Chinese investors
use the dollars to build more factories in the US - increasing
US employment.
But this no longer applies
1. When Chinese investors invest in the US, there investments
appear more driven by strategic , than economic interest.
E.g. China just bought the last US rare earth mine, a
strategic mineral.
2. China uses the dollars to the detriment of US interest.
For example, it is replacing US economic interests in Africa
3. China uses the dollars to undermine the status of the dollar
as the World's reserve currency. E.g China set up the
facility to price future oil contracts in Yuan (Petro-Yuan).
China signed a swap agreement with Nigeria to settle trade
in Yuan
4. China spends the dollars to buy knowledge abroad, e.g. by
purchasing German companies for know-how - and
then to use the know-how to compete with and put out
competitors in the US.
The core problem that Americans consume more than they produce. This allowed/allows US consumers to live above their means. While this is nice, it has to end sooner or later.
6
What about the thousands of finished goods that U.S. companies manufacture in China (all the "Made in China" labels)? Don't these U.S. companies want to export from China to the U.S. without any increased tariff? Can someone elaborate on this point? Thanks.
3
You folks all miss the point of the tariffs. They have nothing to do with punishing China or helping American manufacturers. All you have to do is look at the following quote from the article:
"the administration would soon roll out a process for companies to apply for exclusions to the tariffs for products they cannot source from another location"
Gee - I wonder what sort of bribery that process would entail? Contributions to trump's campaign fund? Contributions to the trump charity? Sweetheart loans to Jared? Purchases of trump family condos?
Anytime a law is created with overly severe penalties, it opens the door to selective enforcement, which is what this would effectively be. Just look at the drug laws. It also violates the SPIRIT of the constitution's "equal protection under the law" amendment, but that is not a problem here, since that amendment only applies to states.
7
Free trade has meant the free flow of capital but not the free flow of labor. The state has helped capital go wherever it wants, but limits where labor can go through citizenship rules.
Free trade involves the government picking winners and losers. The farmer gets a higher price for his apple, but the rest of us have to pay a higher price for that same apple because we're now competing against the rest of the world.
For most of us, free trade has not been free at all.
5
The FED has just increased the interest rate and plans to do so 2 more times. Wages are still stagnant, and these tariffs threaten to increase the CPI even higher, creating even more inflation, which would cause the FED to increase the base rates even higher, which can lead to economic recession.
Even Trump's former economic adviser says that these trade wars threaten to totally undo all of the "gains" passed by the tax cuts of 2018.
Trump is starting a trade war with our 3 closest trading partners, China, Mexico, and Canada, while cuddling with the dictators Kim Jong Un, Vlad Putin, and Rodrigo Duterte, and simultaneously trying to drive a steak into the heart of our NATO allies and undermine US led coalitions in Asia.
Literally every single thing Trump has done in the last 6 months has been absolutely devastating to US national security! I'm so tired of reading about these things. Just... just for once, I would like to see US interests and the interests of our allies being supported, instead of attacked.
Pardoning ZTE while at the same time imposing tariffs on China that prompt retaliatory measures on the US agriculture sector makes as much national security sense as hiring a paraplegic to perform a Broadway theater tap dance.
5
China has played unfairly, but we have no allies in this fight—we have alienated them all. And Trump's supporters will pay the price. I heard one Iowa farmer say that he ready to do his "patriotic duty" and support Trump. He'll be singing a different tune when his farm goes bankrupt. His patriotic duty, like all of ours, is to vote Trump out of office, along with his Republican enablers in Congress. They are sending us all to the poor house, and they don't care.
5
America is behind Trump on Trade war. The economic order has to change. Our friends and foes are taking advantage of us. As per slowing down of the economy, the federal reserve is already doing that with increase in interest rates. No worries.
2
Genius during the Great Recession the fed printed money that enabled the dollar to keep relative parity with the rest of currencies in the world.
Without that as the world's reserve currency the rest of the world would have had food riots and American farmers would have gone belly up en masse!!
1
ZTE rewarded by Trump for breaking the law. The guidelines that ZTE had to follow were very simple. Trump makes it our fault for imposing restrictions on ZTE and and our fault for trusting the Chinese government to monitor ZTE. This is what this whole issue is about, respecting our patents and property rights and Trump lets the Chinese and that Chinese dictator, Xi Jinping off the hook. Shades of Munich, "Peace in our time."?
They've already taken Trump to the cleaners.
2
One consequence of superficial and populist decisionmaking is the lack of consideration for future outcomes and impacts. So many of these terrible decisions by mr. trump will eventually come home to roost on his followers, as well as the rest of us. His followers, in general, seem to lack any sophisticated critical thinking skills.
4
Trump has done what he promised, but as they say, be careful what you wish for.
The people who voted for Trump had a real point, that a lot of well paying jobs ended up going to China because of low cost labor and despite what the economists claimed, it didn't generate jobs in return, all the claims of jobs being generated by China's growth left out that China in fact is protectionist. China blocks US companies from going into their market, and also does things like force things for the Chinese market be made there, usually as a joint venture (which often ends up with the product being stolen by the 'partner' firm).
The problem is that Trump has no idea what he is doing, and his followers really think that we are going to go back to the days where the US produced everything it needed, that the US could do it "alone..and a trade war is going to show that, that suddenly the price of things will soar, raw material cost will skyrocket, and a lot more people will be hurt. The real problem is that no one, especially Trump and the GOP, have any idea what to do. The 1950's are not returning, and what they should be doing is a)pressing China on getting rid of roadblocks on tech, including internet apps and serves and then b)figuring out how to get jobs in those industries to US workers. A trade war is going to hurt a lot of people and not solve anything, you can't go backwards in time, we need to move forward.
3
Something is wrong. If Jimmy Carter acted as Trump he would never have had to give up his peanut farm to serve as president AND he could have imposed tariffs on peanuts!
When a president owns businesses and gets to make sweeping economic policies unilaterally there is the potential for conflict of interest even if there isn't any at this time. The potential is there for future conflicts.
“The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States.”
I just don't see how it is reasonable that these kind of tariffs that have broad and sweeping impacts on country have no congressional approval required and the president can just make up an excuse and all is OK.
3
American companies made a “deal with the devil” long ago when they began outsourcing. Why pay an American worker a living wage and health benefits when you can get the same product, delivered stateside, at a tenth of the cost from overseas contractors? I suspect that there is no turning back at this stage. We gave our manufacturing might away.
4
This trade war stuff is just more evidence that Trump and his Republican supporters are more ideological than strategic. There are many things that could be updated, corrected, and reformed in the world trade ecology but that would require more than just "deal-making." It would require strategic thinking about what's actually wrong and not only how to make it right, but how to win support from allies and adversaries alike to wrangle the changes the US wants. Ain't gonna happen under this Administration and under this Congress.
It's just like the ACA repeal and replace advocated by Trump, Paul Ryan, and Mitch McConnell. Any American paying attention to that bit of sausage-making could see that the GOP *had no plan* for the replacement of Obamacare except a return to the situation we had before: millions uninsured, emergency rooms across the country taking on indigent care as the only access point for the poor to get health care, no collection of big data on health strategies, costs, and outcomes, and nothing addressing the huge costs of US healthcare compared to the rest of the world, and no strategic plan to reduce costs, supply care, and improve outcomes. It was only red meat to the base, *as is the trade war."
And remember, just a few short months ago, the GOP's mantra was to lower taxes and reduce the size of government. Tariffs are taxes, folks!
The GOP has no shame, and they'll raise taxes when they feel like it.
5
Since when is Trump dictator? Doesn't Congress have to approve tariffs, etc.?
7
Re: Bar1
Congress ceded much of its constitutional power because of the magic incantation, national security.
3
Mr. Trump is not doing our country or our allies any favors with his capricious approach to foreign policy. We would have done much better if Sec. Clinton had gotten into the White House, as most Americans wished. Companies and individuals are being tossed into indecision because they are unsure of where the market will turn. Indecision is bad for the country and for the world. We can do better, Congress needs to do its job and give
balance to our policy.
3
If the US trade deficit with China, which is less than 2% of our GDP, is an indication of unfair trade practices by China, are the surpluses with have with several countries an indication that we play unfair with them. Hong Kong's deficit with the US is over 8% of its GDP and Bermuda's trade deficit with the US is a whopping 20% of its GDP. Of course, we all understand that President Trump is not interested in trade fairness.
5
Trump and his advisors are saying they would use federal subsidies to give US farmers relief during the trade war.
When a government subsidizes an industry it is considered unfair trade practice and is in violation of the WTO's rules. The US would be hit with massive fines and other remedies. To guard againt that, Trump has weakened the WTO to the point that it will be unable to balance the playing field and the US will unfairly dominate the global economy. Great for the terrorist business.
3
I'd like to know if the tariffs apply to Ivanka's fashion clothing line manufactured in China and imported to the US for sale.
7
I believe that China is better at playing the cards that they're given than Trump is. He continually overplays his hand and underestimates his opponents.
There's an Kenny Roger's song, The Gambler: "You got to know when to hold 'em, know when to fold 'em,
Know when to walk away and know when to run."
3
It’s richly ironic that the Chamber of Commerce, who so often excoriated President Obama for his measured and thoughtful approach to the domestic economy and trade, now finds itself in the quandary of being in opposition to the Republi-Trump Party’s trade wars. Horror of horrors, Walmart-China’s prices will rise! Better budget more for Christmas lighting this year, folks.
A second irony is that Midwest Trump supporters’ hatred of anything Democrat has given them collective amnesia of the fact that Democrats have always been for fair trade. (Except for a pesky neoliberal branch of the party who basically caused Trump to win in ‘16).
As a Midwesterner smack in the middle of the corn-soy belt, I suspect I’ll see a lot of pain from Trump supporters at the costs of foreign tariffs mixed with utter denial of who’s brought it on.
As an astute commenter on an article on North Korea put it, China is playing 3D chess. I’d say that it is also playing it with regard to trade, while we’re playing WWE stud-wagering like the Don did a decade ago.
Maybe the Chamber will have to hold their nose and decide to support Democrats, who at least will approach the unfair trade problem with intelligence. Democrats owned this issue way before Repubi-Trumpians.
13
China will likely retaliate with surgical political precision, hitting manufacturing centers in red states, or right below the rust belt, as it were.
7
Are you ready for $10 Walmart jeans to cost $80? 'Cause that's where it's headed.
View from Asia
China is in no position to win. Real unemployment worse than reported. Chinese cities are filled with immigrants from the country side, with no residence permit (Hukou), without access to benefits. While the first wave could return to their farms in the country , their offspring will not. It is a class whose existence is threatened by Chinese outsourcing of low wage, unskilled jobs (such as of garments to Hawassa, Ethiopia where wages are 1/20 of Chinese wages and Chinese entrepreneurs are moving their factors).
Any further deterioration of their status will lead to wide spread social unrest.
Expect concessions by the PRC
2
Where is Congress on this?
Trump is acting - and being allowed to act - like a medieval monarch with zero checks and balances.
Why are the Dems not calling him and the Republicans out?
Trump is destroying everything that America stands for in the world.
Just take a look at the UK to see the consequences for a country that ruled the world but ultimately became irrelevant.
This is the path that Trump is taking us down.
4
The good news is that the stock markets are beginning to decline and with them the hopes for Trump's survival.
3
From all the talk about walls, it seems we are walling ourselves in instead of walling our adversaries out. Feel sorry for our farm community, they will pay the highest price. It's not only their farms that will disappear, but their heritage. You have a lot of skin in the game when your a farmer. Sad!
5
Free markets where? I do not believe in governments subsidizing industries, directly or indirectly. Trade wars have short term impacts but are unlikely to change much in the long term. If the threats become reality and American producers and consumers feel the pain I suspect the Republicans will feel the pain in November elections.This is where the idea of unintended consequences will come into play.
Many of our trading partners subsidize their country's industries. How do we choose which countries to target and we determine the amount of tax to impose on imports to achieve some equity for their own industries? Wages and benefits continue to be difficult to offset in the Asian marketplace. Perhaps easier with our European and Canadian trading PARTNERS. Will NAFTA become a casualty of the trade wars, probably. Then we will hear American consumers scream as the bargains at Walmart the Sam's, COSTCO and BJ Clubs disappear. As members either can not get products they are used to or must pay 20-25% more than this month.
I remember the angst when then President Nixon began engaging China. Many said the sky is falling and yet here we are doing much better than 50 years ago. Just remember America is great and we don't need President Trump to convince us otherwise. Free trade, free markets and free peoples!
American people would accept some kind of economic redress but will not accept a Trumpian solution which is devoid of solid economic rational. Trade wars, based on Trump illogic-will not only hurt US consumers but will ensure that China will continue on their road to 2025 with renewed vigor. Canada, China, Mexico and EU will find new avenues for trade, excluding America. When Trump finally pulls out of NAFTA his isolationist visions will be complete. The problem for America is that his visions are flawed by what most people would call lack of common sense. Some would even say narcissistic bullying is a factor.
7
I was worried Trump was going to accuse China as being a currency manipulator.
2
U. S. is the biggest currency manipulator. do you know what QE is?
Shock and horror, as this petty Tyrant now reveals his aim
to have not just our own citizens bow to his insane whims,
but also to destroy every peaceful and logical agreement
among our friendly allies.
Trump says he gets along well with North Korea, but he has
included no diplomatic corps, or other U.S. officials to be in
agreement. Trump lives only inside his head ... for himself,
far, far away from the real world. This is what it feels like to
have a debilitated mind, in which we now inhabit something
like a psychiatric unit without walls.
Our intelligent commentators provide a logic that reminds us
we are a leading nation of research, medicine and education.
Their thoughts and honest assessments are welcomed --
even as Trump thinks we will obey his tyrannical ideations.
The end to all this will surely come. So sad.
3
Let me get this straight. Trump is starting a trade war with China that will hurt scores of ordinary Americans while simultaneously, companies controlled by the government in Beijing are helping the Trump Organization build lavish hotel+golf clubs in Dubai and Indonesia. Unbelievable.
16
So the 70bilion trade package offered by China is net new trade or is most of it already in a pipeline?
1
As president Trump waddles cluelessly from one self-created crisis to another, maybe his diehard supporters will begin to realize they're going to be on the hook for his latest bankrupt blundering.
3
What's really scary about this is the lead photo; An Automated Container Handling Facility? We still use "Contract" truckers, where old semi's go to die....
America is investing in the wrong, "oh shiny" technologies.
Al those automation kiosks at McDonalds, which just change the nature of the Labor needed, don't really save anything except in the boards imagination.
1
Full, complete bankruptcy of the country on all levels is coming. Faster than anyone thinks.
1
The best and most effective tariff in the world is all of us not shopping at the big box store and purchasing all of their imported goods. (bypassing our local economies, people and jobs)
We will make their goods higher priced, and they will retaliate on prices, which will only exacerbate the price difference between those imported and locals goods.
We lose and then lose again.
3
Another of the Greatest and absolutely, fantastic, great and fantastic, absolutely, so great, beautiful victory. After a month or two the Greatest will find out it was not such an absolutely, fantastic, great and fantastic, absolutely, so great, beautiful victory. The Greatest will end the trade-war and will declare an absolutely, fantastic, great and fantastic, absolutely, so great, beautiful victory. And the the cult will cheer because of the Greatest's stunning and absolutely, fantastic, great and fantastic, absolutely, so great, beautiful victory.
6
This might be a lot more effective if it were part of a concerted effort with Canada, EU, Mexico, Japan and other Pacific Rim nations. But since Trump has made it a matter of "US against the world," we'll see...
My guess is there will be another climb-down by Trump in a few months. Mnuchin will be back in favor. Trump and Xi will have some "beautiful chocolate cake" together. China will make some meaningless concessions (like North Korea's vague promise of"reciprocal good faith gestures"), and Trump will declare victory.
9
The global economy and inter-relationships between products and markets is so complex that is not possible to predict exactly what the impact of a blunt tool like tariffs will do. Also, there will be unanticipated consequences that only in hindsight will we see the inter-relationships. So right now we can say whether this is good or bad, or good or bad for who IN THE LONG TERM. In some cases it might actually be better for the U.S. and its citizens if we pay slightly more from some goods and products to assure employment and jobs here that support our communities.
4
Slightly more? With average Chinese factory worker making a tenth of worker in US, tariffs are likely going to have more nuisance value than anything...they will be large enough to cause pain to our consumers and businesses, but not large enough to solve systemic problem.
1
Tariffs are blunt tool, indeed. The value is what intention they signal to the recipient. Hopefully they will move our trade with China towards harmony. And yes it would help US to pay a little more especially if the production of future factories never leave the USA
China is "our real trade enemy". China is not an enemy nor is Russia but Washington pols seem to think that making enemies then do tit for tat raising of hostilities is a good thing. Certainly the US gets some benefits from trade with China. Schumer perhaps should think less in a zero sum manner.
2
Russia isn’t our enemy? A nation that interferes with our election on a massive scale and continues to do so (nevermind murdering critics of despot Putin) is absolutely an enemy.
2
About the NYT video on China. 3 wrongs don't make a single right. #1: it's wrong to assume that China would play by U.S. rules, given its developmental stage, the determination of the CCP to stay in power, and China's sorry remembered history of 19th European imperialism. Historically informed people -- but not economists -- have long understood this. #2: the TPP: you didn't have to be a right-winger to work against the TPP, which abrogated the legal rights of workers, the environment, and regional and "buy-local" policies through Investor State Dispute Settlement (ISDS) judicial tyranny, which the TPP would have made worse than even under WTO and NAFTA. #3: free-trade (neoliberalism) is good for all. In fact, WTO and NAFTA and other trade agreements were designed by non-partisan leaders and corporate managers to favor businesses over labor and destroy working-class power. As a result, the working majority have miserable jobs at minimal pay, and labor unions have been crippled. Hurrah for corporate profits, however, which translate into campaign electoral support. So, 3 wrongs don't make Trump right -- but enormous resentment by working people against trade agreements is completely justified. By the way, Trump didn't stop U.S. support for the TPP. Instead enormous pressure by progressives put pressure on Congress not to ratify it, and it worked. Upshot: this is all about non-partisan corporate power that has made millions miserable. Trump plays to this misery.
5
The first thing Whirlpool did when the US slapped tariff on LG and Samsung appliances was to jack up the price. They are not hiring more and producing more at the same price, but simply making more profit at the same volume.
These tariffs are not going to do a thing for the workers or consumers. All they do is increase the profit for the corporate America and dividends for the wealthy.
15
"...the United States would pursue additional tariffs if China retaliates." That approach to making a "deal" is entirely consistent with Trump's stunted mentality: "I'm going to hit you, and if you hit me back I'll hit you harder." That's how barroom brawls begin, and that's where we're headed, not only with China but with much of the rest of world as well. In the meanwhile, innocent bystanders are hurt: America Midwestern agricultural interests, America end users of steel and aluminum, and American manufacturers of downstream machine products. That will spread out like an oil slick, hurting more and more America domestic interests as "collateral casualties" of Trump's personal war to make good on a campaign promise. At bottom - and as always - it's about "him", and this latest sally "brings back the jobs"... how? Crickets are far noisier than the answer to that question.
11
I know the NYT is anti-Trump territory, but can someone answer a simple question: are you not TIRED of buying cheaply made junk made in Chinese sweatshops?
4
"Cheap junk" consumer products, TVs, phones, computers, are not effected by the Trump tariffs. The tariffs are on raw materials, metals, plastics and industrial equipment American businesses need to produce globally competitive higher value products.
3
Those are not the products Trump is raising the tariffs on, so I know you are Pro-Trump but at least go through the list of goods having tariffs applied.
Answering for the American people including Trump supporters: no, not tired at all. Nobody answered Trump’s call to Buy American.
Some thirty years ago Wal-Mart had an advertising campaign of it selling goods Made in America. That lasted a few months and was replaced by ads showing price drops of literally cents. Wal-Mart knew what American shoppers wanted. It wasn’t Made in America. It was pennies.
4
This blind wheeling and dealing absent of any strategic and forward thinking ,plus willful ignorance of the facts is bad for the future of our country.
We have to face up to the fact the rest of the world does not want a majority of our products.
Two examples, Autos and Soybeans.
Others do not want our vehicles , suffice to say BMW is our biggest exporter
Soybeans we are losing market share to Brazil as their beans have greater protein content.
Another point Brazil is seeing the opportunity to export more by enhancing its infrastructure consistent with most other countries vying to get a share of a burgeoning Chinese consumer market.
We on the other hand impose selective punitive tariffs which distort the free market and picks favorites , two things Republicans have railed against. Our infrastructure continues to crumble we have spent all our available financial capital on tax cuts
A solution forget these trade wars , introduce a 4 percent infrastructure fee on imports to help pay for an infrastructure they benefit from .
Utilize the resulting $ 1.5 trillion over 10 years to invest in infrastructure including Cyber and technical education to upgrade our ability to compete.
We spend this money only on American material , machinery and equipment. This should quieten the bogus argument about strategic value, minimize inflationary pressure which could well be offset by a stronger dollar
4
America is one of the wealtiest countries in the world. 7 times richer than China (BNP:population) , and one of the most economic unequal. Trump blames all the rest of the world for
your problems. In stead of fixing the inequality, he (with the help of the rich republicans) is turning your country into a lawless, uneducated and polluted banana state run by a "golden God" and his family. Sad to see.
14
The USA is bankrupt
2
Your description of the US reminds me of the country of my ancestors, Norway. See how long "equality" lasts after your oil runs out and your new Muslim neighbors want political power. Norway would do better investing its oil windfall in export technologies of the future instead of importing new "Norweigans"
1
Any room in Norway? I’m coming.
1
Take note: This guy doesn't play well with others.
7
We need leadership from our presidents, not playmates
1
Since Trump said that, "Trade wars are good and easy to win", then it must be true. And since it's true, we have nothing to worry about. In fact, when red state companies go out of business, Trump supporters, who will now be "former employees" can keep repeating that phrase to themselves as they endure their endless waiting on the unemployment line.
They can also repeat it when Trump decides to enact and enforce a "work requirement" for people who want to continue to receive "unemployment benefits".
Enjoy your cake Trump fans! You've earned it!
25
Trump's next book will be titled, "The Art of Bankrupting a Nation," with the forward written by Putin.
7
"Mr. Trump’s tough trade action was applauded by Senate Minority Leader Charles E. Schumer, who typically opposes the president’s every move.
“The president’s actions on China are on the money. China is our real trade enemy, and their theft of intellectual property and their refusal to let our companies compete fairly threatens millions of future American jobs,” the New York Democrat said."
Surprising response from the senate minority leader that the author of this article didn't mention for whatever reason. When he and others within the Democratic Party agree with Trump on something, the chances of the policy being correct and justified increase. For all those traitor globalist, open borders, free trade advocates in congress complaining about Trump's actions on this issue and others, just remember who is responsible for sending previous presidents the legislation granting that authority he now enjoys. That would be you. Good luck reversing it. Once a president has a given power, it's hard to take away. Keep that in mind the next time you're rushing legislation demanded by your corporate masters. You may very well come to once again regret it.
https://www.washingtontimes.com/news/2018/jun/15/us-announces-tariffs-50...
2
Hey MAGA-heads. Are you paying attention to what your boy Trump is doing to your paycheck?
Prices on goods are going to rise, wiping out that minuscule temporary tax cut. you got--even for American-made goods, where manufacturers have taken the opportunity to raise prices to match the tariff-laden Chinese imports. Your manufacturing plant job may also go away as the cost of steel and aluminum rise. But unemployment is low. so you can get a new minimum wage job right away. Life is good after all, right?
And, after all, what do you care? Any sacrifice for the Emperor, right? Look, you got Gorsuch, and the elimination of all those Spanish speaking annoyances in the meat-packing plant down the road. and an embassy in Jerusalem! Wow! Trump really delivered!
Of course there is also Pruitt making millions for oligarchs by polluting your water and air,and HHS killing your relatives with restrictions on health care. But all those corporate profits are sure to trickle down to you, right?
Your wages have gone up, right? No? Well, never mind. Just keep shouting MAGA MAGA MAGA and Emperor Donald might hear you and throw you a few slogans that will make you proud to be his supporters.
22
The farmers and denizens of rural America that voted for Trump are about to get punished bigly for being so gullible. It gives me no pleasure to see this happen but maybe this will lead them to wisen up about the world and our role in it.
13
The family farm was ripped apart during the Reagan administration and they didn’t learn from that.
3
Maybe. But they've been voting against their self interests for so long, I doubt it. Surely they can find someone besides their cult leader to blame.
2
The best case scenario for both China and the US is to push whatever button necessary for Trump to declare victory and for his supporters to chime in about the Big WIn.
For NK, it was the summit in Singapore: amazingly enough, the meeting itself was declared by Trump as a victory and by Fox as a huge win that made all the libs jealous.
For trade purposes, I suggest that China showed us the way by bribing Trump over ZTE. Between US and China, there should be enough industrialists to bribe Trump, tell him he's the bigly, and throw him a parade.
3
Let's look at this from a bibical per-
spective:
God let's you know in Revelation 8:9,
that commerce is going to go bad.
See where it says "a third part of ships
were destroyed". It means commerce
/trade is going to go bad, and so it is.
He's telling you ahead of time so you
won't be dismayed, afraid, or unsure
about what's going on.
You don't have anything to fear, he's in
control, and he wants, and expects you
to keep your head on straight, and con-
sider all he's told/forewarned you about.
Remember, God has not given us a
spirit of fear, but of love, power, and
a sound mind.
1
Say it with me everyone!
"Trade War Trump!" "Trade War Trump!"
"Trade War Trump!" "Trade War Trump!"
"Trade War Trump!" "Trade War Trump!"
"Trade War Trump!" "Trade War Trump!"
"Trade War Trump!" "Trade War Trump!"
"Trade War Trump!" "Trade War Trump!"
And keep saying it until the election!
1
He'll do to the U.S. what he did to his casinos.
9
Hard to read the tea leaves here. It is almost impossible that there won't be additional swerves back and forth in the coming months. If the tariffs go into effect, then yes, they will hit many people and benefit many fewer. With mid-terms coming up and the House in play, the first signs of revolt in the hinterlands will be amplified. Certainly, if I were China, rather than go tit-for-tat, and seeing that Trump intends to limit Chinese investments in the U.S., I would actually over-respond and create a deterrent against future moves. Many people point to > trillion dollar Chinese holdings in Treasury bonds and continued buying. Xi could tell his citizens that these investments are unpatriotic, resulting in shifts to alternative investments in Europe. Other countries might follow suit. Though the consequences might be less than dire, Trump might have no easy recourse other than to concede or reverse all the tax cuts.
2
Combine that with passing on KFC, Coca Cola, McD and so forth. It will hurt.
1
The cost of living in the US is already pumped into the stratosphere in many places, and every consumer and business will have to shill out more with zero value added...I thought the guy was a Wharton grad, what is he thinking?
7
Re: SOS
Wharton graduate? HAHAHA.
Why doesn’t some enterprising reporter dig into Trump’s “Ivy league” education?
The guy can barely read. Based on my 25 years of teaching experience, I would classify him as having some kind of reading deficit like dyslexia. Every time he opens his mouth, he shows evidence of “orality.”
Didn’t the Republicans try to impugn Obama’s educational attainments in addition to his citizenship? Well, Trump only spent the last two years at Wharton; he was a transfer student!
1
There are a lot of ill informed comments
1. The US has and is conducting trade wars since the 1920's in agricultural good. Under both Republican and Democratic administrations. There is NO free trade in agricultural goods.
2. Trade war initiation is not limited to the US. To quote Senator Charles Schumer (D) Senate leader :"Canada, when it comes to dairy, acts like China when it comes to trade. They’re unfair. They put up barriers. They treat us bad.”
3. The reason Canada does so, is to protect its farmers .
3. Trade wars had to spread from agricultural goods - where they have been in operation since the 1920 - to manufactured goods for political reasons, outlined and predicted by Peter Drucker, founder of Management Theory , in 2001. Peter Drucker clearly outlined 17 years ago why this had to happen. This has very little to do with Trump and much with globalization. Readers should read Drucker , link below.
https://www.economist.com/node/770819
It very clearly lays out why the protection that e.g. Canadian dairy farmers enjoy would spread to manufacturing.
5
With record low unemployment the case tariffs in bringing back jobs is not valid.
Reigning in China’s unfair business practices is a worthy goal but this isn’t the way to do it. That requires a united front from Western trading partners—not a choice now.
My heart goes out to US farmers, who supported Trump and are being sacrificed for just what, I’m not sure.
Is there any evidence that Trump knows how to manage a long term trade warwith the world? Putin is getting his money’s worth.
5
Trade wars triggered by imposition of tariffs hurt both (or many) sides - but ultimately the consumers.
Trump’s (unwise) tax cuts would be neutralized by higher prices and inflation dreaded by economists and consumers alike. Retirees with fixed incomes would suffer the most.
A better strategy would be to re-activate decades old idled manufacturing by offering incentives to domestic manufacturers. At least, that way, the wealth would stay at home. Non-college graduates will get jobs, prosperity would increase, and American technology and know-how will stay home.
Imposing tariffs without doing anything to replace imported goods with competitively produced domestic goods is just a vicious cycle doing no good to any one except perhaps to Trump's inflated macho ego.
4
I'll give Trump one small point, though I don't think he actually understands it; China is not playing fair ball. China gets to control and foster development in its economy according to a central plan. No short swing profit motive there; they're all about the long game. They are intent on economic domination.
Trump misses this point and dives deep into a trade deficit argument. We're not on the barter system. We don't trade pork for televisions. People with currency trade with people having goods. It's a fair swap at that point.
Trumps advisors need to get back to the core issue before they tank world trade. Isn't the real question what to do about unfair use of government power to damage other producers? There used to be a process of grievance through the WTO, before Trump blew it up. Trump needs to fix that.
2
Good thing the GOP gave Americans those tax cuts. We are going to need the cash because thanks to Trump's trade wars everything at Wal-Mart just got more expensive. Maybe the top 1% will voluntarily open the spigot and allow more of their tax windfall trickle down to the rest of us.
1
Hope that $500 million loan money is already in the bank.
3
If Trump continues to believe the US is on the losing end of trade and keeps this up, it won't be long before the rest of the world leaves us behind and we see prices for basic goods increase and more jobs lost. This will not effect those among the 1% - the tax cut more than makes up for it, but for the rest of us it will lead to a great deal of belt tightening, and this is even before the GOP goes to work on slashing the social safety net. Trump isn't only irresponsible where all this is concerned, he is right out deluded.
2
The question is: what's the plan behind?
Well, I'm afraid I have the answer: that's sheer gambling...
1
The Republican party at one time was the party of free trade! They like the dodo are now extinct. The cult of Trump now scares his own party from doing anything that is beneficial for our country. The president has accomplished in just over a year what our enemies have been trying to do for over 100 years, left us alone. This idea of isolation and going it alone is a theory from the past and even then it was a wrong way of governing a country. Great leaders saw that the only way to accomplish great things anymore was to be part of the world community. We were once the leader of the free world working to open up trade so that everyone benefited. Now we go it alone and the only thing a lone scoundrel does is die.
1
Fixing something as broken as the US economy is a messy job. Americans elected Trump to change the direction the country is headed in. This is what change looks like.
1
Then why does he keep telling us the economy is fantastic?
3
So what you are saying is that the new direction is down??
"That would potentially dampen economic growth that has been stoked by the administration’s tax cuts." So, our "economic growth" is attributable, or fueled by Trump's tax cuts? That is an opinion passed off as fact, in a way that I would not expect to read from the NYT. Any debate on that is politically-charged, but we can agree that any effect of this tax cut would take place after the mid-term elections, when taxes for 2018 are filed. The effect of any tax policy is felt years down the road, not a couple of months later. Unless you want to spin things. I guess Trump's policies are responsible for the Washington Capitals winning the Stanley Cup as well?
3
Not to defend an administration of thieves and liars but China has been actively stealing important intellectual property / technology from American corporations... then selling that tech back to us cheaper. If tariffs actually target China “2025 tech” (scrutiny needed) it seems necessary.
5
The retaliation is aimed at Trump supporters. Please make it as large as possible.
1
Donald, no country has successfully isolated itself to prosperity.
8
We should keep in mind that, for all his wanna-be-dictator bluster, Trump is an elected official. Xi is president for life in an autocratic nation. That means that China can tough out a trade war (or any other type of conflict) much longer than can the U.S. Not only is this action by Trump "very unfair" to American farmers and manufacturers, it's futile.
Make America Grovel Again!
3
This will be fun to watch. When will the Trump voters realize that they actually have to pay for all of this?
4
Reality is this: Most of what we get from China is extremely poor quality and prices we cannot compete with - I am excited about these tariff's - hopefully they're high enough to allow American manufacturers to get back into the game.
2
Good for America. China is an increasing adversary. Short term costs (somewhat higher prices) must be offset by long term considerations (protecting American manufacturing and distribution and security and industrial and military technology). China can impose tariffs on America in retaliation but we will escalate. China will lose a trade war because their huge trade account will reduce to zero. America will pay the short term price. However, since they probably are a paper dragon, they will likely back off. Hang in there Pres. Trump.
8
The strength of our economy and future stability is not a game of chicken and it's not like a construction project that if you guess wrong you claim bankruptcy and start over somewhere else. We know the results from the Great Depression when a president guessed wrong and sent this country into a financial catastrophe that lasted over 10 years.
Tariffs and trade wars will never be beneficial to our economy and there are other ways to level the playing field if we feel that we are at an economic disadvantage with a trading partner.
Trump has started a war that he has no idea how to win and he's gambling the future of this country that he can out maneuver the Chinese. He's taking a water pistol into a gun fight.
5
The people that will be hurt the most by Trump's trade war are the people that voted for him. These folks, a number of whom are suffering from the opiod abuse problem or who have family members or friends that are, will soon find their jobs at risk, their purchases for goods and services higher in price, rents, mortgages, car purchases and leases, food, and their health care costs increasing as well.
I remember the awful days of from 2008 thru 2010. I had friends, highly educated, middle class folks who lost their homes, their cars, and had to declare bankruptcy. Some had to even go to food kitchens in order to survive.
Back then we had a President who saved our country from entering a Depression, ended the war in Iraq, saved the U.S. automobile industry from collapse, and extended medical insurance to 30 million Americans who did not have it.
Today we have a President who insults our allies in Canada, Mexico, Germany, Australia, and France and praises murderous dictators in North Korea, Russia, and The Philippines. We have a President who has empowered and embraced racists, and who has made immigrants, legal and those who have come here willing whatever they can do to survive and a provide a better life for their families, the enemy.
We have a President who has called the press the enemy of the American people, has caused massive distrust of our law enforcement agencies, judiciary, and intelligence agencies, and now has begun a trade war.
May God help us.
5
If China stops buying US Treasuries bills, notes, and bonds in retaliation, then these issuances will not be at par values—or anywhere near them. Their selling price will need to fall. That means that the effective interest rate they carry will shoot up.
The consequence?
The Federal Reserve will lose its control over interest rates. It will also signal the demise of the US dollar as the international reserve currency, with economic effects far worse than anything this country has experienced.
Why would the Chinese continue being such good customers of US Treasuries?
8
Because US Treasuries are safe and transparent, something the Chinese economy is not.
Re: From Where I Sit
If I’m right, US Treasuries will be neither safe nor transparent.
The pressure will mount to find some kind of instrument other than US $s and US government debt for international trade.
2
Trump got what he wanted, a cold war.
1
Welcome to Trump's America he cuts taxes for the already rich and corporations by putting it on ALL American's credit card through deficit spending to the tune of 1 to 2 trillion dollars, your children will be proud of you.
And now he's going to raise tariffs on the goods many Americans need to buy, there is an old saying ' a rose by any other name still smells as sweet ' and a tax on working class Americans to give to the already rich still stinks!
4
When the top 10% pay over 70% of the federal income taxes collected, I’d say they deserve a tax cut. I know that the meager taxes I pay are too high yet do not cover the past of providing the roads, etc. that I use but that’s mostly because public employee unions have coerced us to pay pothole fillers $50,000/year.
1
Response to From Where I Sit - You are ignoring the most critical number when considering how much the top 10% should be taxed; how much are they making? And here is the answer; The top 10% has nearly 80% of the wealth, yet only pays 70% of the taxes. Therefore, they are UNDER-taxed.
At a certain point, the actual dollar amount paid in taxes, regardless of the bracket or ones wealth/income, becomes obscene. When Robert Mercer is being persecuted for $1.8 billion (BILLION!) in additional taxes, it’s no longer about covering the cost of the government services and facilities you make use of. It becomes an attack on success. No multi generation bloodline should pay billions in taxes much less one man.
Trump's tariff policy is a prime example of a LITTLE knowledge being a dangerous thing!
2
The U.S. did NOT impose tariffs. The Con Don imposed tariffs to enrich himself and his Robber Baron brethren.
WE THE PEOPLE - average people around the world - must NOT let them start WW3.
They think they will gain money and power but both are fleeting. WE lose. WE must stop them.
3
To be honest, it almost seems that Trump is trying to do everything possible to crash the economy. Maybe so, when it does crashes, he can issue executive orders to gain one-man rule. The ploy used by Putin and Erdogan to cast blame, on others, to consolidate power.
If any one things that the US 1% is going to spend billions of dollars to start up factories, in the US, they are dreaming. And if they do, if Trump supports expect to get their high union pay jobs back; they are dreaming even more.
Trump expected the tax cuts would go for salaries, and investment in domestic manufacturing. Guess what? Those tax cuts went to buy back stock, to stock holders and to corporate officers pockets.
And, if you worked in that factory, and they manage to build it, they are not going to pay you $30 - $40 an hour, but something like $10 to $15 an hour. Those high paying union jobs died at the end of the Carter Administration and beginning of the Reagan Administration.
Meanwhile, raising interest rates, and imposing tariffs, are nailing those who depend on minuscule retirement and near 0% interest savings accounts.
This is making "America Great Again"?
72
"Trump expected the tax cuts would go for salaries, and investment in domestic manufacturing."
No he didn't. Don't be naive.
2
Nick - Just to be clear; Trump NEVER expected the tax cuts would go for salaries, and investment in domestic manufacturing. He just sold the tax cuts on those talking points because his base would buy it, hook line and sinker. That was never the real goal. The real goal was the continued upward redistribution of wealth in this country.
4
The union busting started with Reagan vs air traffic controllers. The Republican/Corporate war on the American worker continues to this day. Undervaluing the workers' contribution to profitability seems to be the new American normal. This undermines dignity and stability. But until those Walmart shoppers acknowledge that their low, low prices come at a cost, we won't be getting anywhere to make it better for the 98%.
4
I'm ok with this tax on the American consumer if Grover Norquist gives his approval.
10
To all my eco-friendly friends: does it make ecological sense for China to import pork from the US? What is the carbon footprint of tons of meat being shipped around the world? Wouldn’t it be better for the eco-system if the Chinese raised their own pigs? And yes, the same can be said about any food exports around the world. Eating local is actually healthier and it helps the environment.
I know it will sound crazy, but trade tariffs might indirectly help the environment.
11
You are correct, Rosamaria. If you want to take it further, reducing the production of meat in general, and having people increase their protein intake via plant protein, eggs, and dairy would be even better for the environment. The amount of energy, carbon, and water that it takes to raise a hog or cow for years only for a one-time slaughter and consumption is actually quite wasteful. And I say this as an avid steak lover. I'm just being honest.
12
Interesting thought, but it's not going to happen. Canadian pork farmers are already moving to fill the market share in China lost by their counterparts south of the border. It's no harder to ship out of Vancouver than it is from San Francisco or Portland.
I'm beginning to see the logic of Trump's tariff policy: he wants to start a trade war to fire up his base. Yes, the people who voted for him will feel the most pain from a trade war, but that will just make them angrier at every other country we trade with -- they'll never pin the blame on MAGA Trump. They'll probably rationalize their personal decline as a patriotic sacrifice for the war effort. Some folks never learn to see the con.
Trump is truly a demagogue for the 21st century -- he has an intuitive feeling for how to use television and social media to stir up the hot emotions of his supporters while bypassing rational thinking. Reality television (i.e., The Apprentice) is all about hitting emotional buttons, and the same goes double for social media. Maybe it's time to start calling it "antisocial media", because it's so easily used to ignite anger and hatred with Facebook and Twitter.
Here's a link to illustrate that:
https://www.nytimes.com/2018/06/15/opinion/sunday/moustached-kingfisher-...
Many people have predicted that Trump might start a war in order to consolidate power. Wars generally trigger herd behavior and hostility againt the "other", and Trump has encouraged xenophobia and nativism from the get-go.
Trump has basically declared war on the rest of the world.
Tragic.
45
Agreed.
1
Focusing the list on manufacturing input components rather than consumer goods seems odd to me. For instance, LEDs are included, but not LED light bulbs. US manufacturers of LED bulbs who purchase LEDs on the open market now have a strong incentive to move their production overseas (or to Canada or Mexico), since Chinese-made light bulbs will have a 25% lower cost for their main component.
I suppose the notion is that we’ll eventually add tariffs to all finished goods as well; but it seems odd that we wouldn’t _start_ there.
3
What Trumpers don't seem to understand is that the best way to for the government to stimulate the economy isn't by driving up prices with tariffs, it's by driving up demand with government investment. For example, the best way to increase the health of US steel companies would be with a massive (and sorely needed) infrastructure initiative with "Buy American" provisions for materials. The amount of US steel and iron used in concrete rebar, bridges, highway guiderails, water system valves, and water/sewer piping would be massive, and would stimulate the domestic steel industry, as well as the general economy via a massive multiplier effect. Any president who actually cared about the country would take this approach. In fact when Obama pushed his infrastructure package in 2010 it was only partially effective, because the GOP demanded that half the money be used for tax cuts for the wealthy instead of for infrastructure. The GOP has been the enemy of America for quite some time. This didn't start in 2016.
79
Trump must collect tax money somewhere after his big give away to the rich so he is taxing the working class. Most Trump voters shop at Walmart and stores that sell Chinese goods. They will pay more now to help pay off the additional 2.5 trillion debt Trump created. Suckers.
43
Shoot self in foot. Repeat.
Trump supporters are essentially a cult at this point. They are impervious to economic reality and real world consequences. If you think they're going to vote more intelligently after being hurt in the wallet by this idiocy, you have another think coming.
76
And you globalists are like zombies drawn to the cult of globalization, impervious to the effects of outsourcing on American workers and U.S. politics (as well as those of the entire Western world).
2
The fact is, if you are unwilling or unable to effectively compete, you deserve to fail. Many American jobs are overpaid especially if wages are considered relative to the educational investment (years AND dollars) required to obtain employment in a given field. How does the counter help at McDonald’s justify more than a buck or two an hour? How does a plumber rate anything over $7.25?
1
Trump is definitely a cult figure at this point (actually, if his campaign rallies were any indication, he was a cult figure for plenty of his supporters even before he was elected). They watch Sean Hannity and other Trump mouthpieces on Fox News the way some people watch religion channels on TV, and presumably turn off Fox when Shep Smith and the one or two other rational hosts' shows air, blocking out any factual information that might create cognitive dissonance. When Trump's actions hammer them economically, he will blame Democrats, U.S. allies, the media, and non-white immigrants (and, by extension, non-white U.S. citizens and legal residents), and the cult will take every word as gospel.
Still, a majority of voters are not part of Trump's cult, and a "blue wave" at mid-terms could flip the House and possibly the Senate as well. However, given how happy Putin (and Xi, and now for Kim Jung Un) must be with Trump's absolute control of the Republican Party, there's every reason to fear ballot tampering in November by Russia, China and/or North Korea. It needn't be widespread -- just enough altering of vote counts in enough races to maintain control of Congress. Conveniently, Republicans have been working to increase the use of unverifiable computer voting systems. Why haven't Democratic leaders in Washington and across the country been making an issue of this?
I read that many Trumpians voted for Trump precisely because they wanted Washington destroyed. They are getting a bonus! The entire institution of western democracy, carefully constructed since WWII, is under Trump's bulldozer. Are those old angry white Trumpian men celebrating over their morning coffee yet? Please, Oprah & others, let's interview those Trumpian farmers and manufacturers as they begin to feel the pinch. How long will they continue to repeat alternative facts? How loyal are these Trumpians? Will they go to the mat and lose their homes and farms, because at least Trump will continue demonizing immigrants? Was LBJ right?
"If you can convince the lowest white man he's better than the best colored man, he won't notice you're picking his pocket. Hell, give him somebody to look down on, and he'll empty his pockets for you."
57
"I read that many Trumpians voted for Trump precisely because they wanted Washington destroyed. "
Deborah, you are on the mark. I still recall not long after Obama was elected, having folks (usually white males) tell me that we need rip up the system, and start from scratch.
I fear that we are witnessing the beginnings of another "civil war" that is based on culture. I pray that this gets resolved at the ballot box, and not in the streets.
2
Congress, do something.
9
Policies entirely based on stroking this man’s ego.
And, apparently, no recourse?
11
Making enemies with our democratic fiends and friends with our authoritarian enemies... whose world order does this sound like? We are Putin's America.
6
As an outsider it is completely baffling to me how 40% or so of your population can't figure out your country is now being run by idiots. (run is probably not the right word ). Or maybe they do and don't care.
I love America. I worked there to 9 year and gained tremendous respect, but you quickly spiraling downward in moral, financial and stability aspects, While US economy is big it is only 7% of the world's population. Of course every country you hit with tariffs is going to hit back and immediately look for new markets in the other 93% of the world.
So may lies - so much bad information being peddled.
American friends - I feel very sorry for your problems..
44
Is this the best way to do business or is this just Trump's way?
4
"Alas for the Trump voters, the disasters he will bring on this country ... they (Trumps voters) will not like what happens next" -- Garrison Keillor, The Washington Post, November 9, 2016.
All of this stupidity on trade issues will rain down on the Trumpeters in ways they might not imagine and can least afford. This isn't the salvation of Trump supporters working in affected manufacturing sectors; it is their evisceration and dismemberment.
6
The Trump’s are merely waiting for their next bribe from China. Because of the world economy China will not have to kneel to the clan, China is the ascending power, and China doesn’t have to genuflect to Putin. America now living in a world of hurt, we’re RETROGRADING!
6
"U.S. Imposes China Tariffs, Escalating Trade Fight"
Nobody imposed China tariffs. Why the continual cognitive dissonance in your headlines, NYT?
2
People - remember...#45 said,...trade wars are good, and easy to win...”. 3/2/18.
8
Dear China:
I hear you have been having a little trouble with Uncle Sam. Sorry to hear that but remember you still have an opportunity to come visit us anytime you choose, we also had a spat over some spilled milk and are waiting until he cools down. Anyways, wanna buy some pork or beef or corn or wheat or sugar or lentils or just about anything else just call Justin, you got the number.
Your steady friend , Canada.
8
Mandarin studies in Europe universities going up 1400% in last year.
3
Trump's fun to watch because he's always doing something stupid. Since he's unable to take advice or think things through, it all backfires. He reminds me of Wile E. Coyote.
10
"Easy to win". So what are we thinking... 2 weeks? A month? A year? 5? a decade?
6
Do people realize that most fasteners are made in China? The things that hold things to other things? They are made only in China. No other place.
9
True, but the fasteners could be easily made in the US in a heartbeat. They are only made in China because it's cheaper, and China learned to make them from the US. It is not difficult manufacturing. The big question is; who in their right mind would invest in such a US factory when the current president could pull rescind the tariffs at a moment's notice, destroying their business?
3
US is certainly big enough that it can change things such that we have almost no trade with the outside world - and produce all we need at home. However, transition will be painful and cost a lot. All of those people now producing agricultural products, will have to be retrained to instead make clothes and little trinkets in factories. Airplane and other high tech/high pay industries would be drastically reduced and the financial industry would be cut in half. Those people would have to be retrained for the trinket industries or learn how to sow.
The "best" we can hope is that this is another one of Trumps hustles. Bring it to the brink, then pull back and harvest whatever concessions you got; then bring it to the brink ......... That worked great for him when he was squeezing a small contractor to accept half of the payments originally promised. With world trade and politics it will be a slow moving disaster - as the rest of the world simply cut off US and start working around us rather than with us. The exorbitant privilege of being the world reserve currency and borrowing for our national debt in our own currency is about to be taken away; how many people understand the consequences of that.
6
We need to remember that Congress has the power to set tariffs not the President except in cases of national security. This is not the case with China as the Trump administration is already allowing ZTE, the one company that poses a national security threat, to have access to American technology in lieu of a $1 billion fine. Once again, it's up to a complacent Republican Congress to serve as a "check and balance" rather than a "blank check" to executive overreach. The last thing we need is a trade war that will damage a healthy economy.
5
I fear a return of something akin to the stagflation of the 1970s. The trade wars will lead to job losses coupled with inflation. And monetary policy will not be able to pull us out due to the currently prevailing low interest rates resulting from surplus capital and central bank policies in the U.S. and abroad.
Why did congress cede to the king the authority to wreak such havoc upon the people with the mere stroke of a pen?
3
Smoot Hawley disaster in the making. The world wide 1930s disaster caused in large part by a tariff war. Is this all distraction by Trump for the purpose of diverting attention from the Mueller and other civil and criminal investigations? Can Trump cause a disruption in world trade in an attempt save himself and will he?
You bet he can and I think he will.
5
I have to wonder if Putin is not the ultimate beneficiary of this potential disruption to the economic system. Engaging in trade wars simultaneously with Canada, Japan and the EU and China is counterproductive.
I am afraid that all of the countries above will be targeting the same sectors of the US economy with retaliatory tariffs, i.e. agricultural products from Trump supporting states.
Why Trump did not focus exclusively on China from the beginning is beyond me. Any new word on the status of ZTE and also Ivanka's trademarks in China?
1
Home Depot is one of America's best "hardware stores." I recently purchased some of their captive store brand items, such as Husky and Ryobi. I got a 40 Volt Lithium chain saw, a 150 PSI air compressor and a medium power washer. This is stuff I used to buy from Sears' Made in USA Craftsman. Everything is now Made in China for Home Depot because of the bigger profit from cheaper manufacturing costs. Any tariff is only going to raise prices for American consumers. My Acura RDX is already made here. What happens to Tesla when Warren Buffet's BYD starts building electric cars here, or Boeing when China makes it own passenger jets. Made in China 2025. President Trump should try to THINK AHEA...D
4
Trumplandian farm exports, manufacturing, and those working in those areas will feel the pain in time for the midterms.
How will payments be made on billions of dollars of farm equipment, with a pending price collapse on bushel prices.
How will mortgages be paid?
Suicide is already a plague in farming, and this will not make it better.
This will drive more small farmers out and increase the trend of company farming.
5
It appears that our President is trying to create "leverage" which unfortunately has the side effect of making us all "dependent" on his good will and judgment for critical resources.
3
Leverage with a country that owns our debt is not a very smart plan.
1
Our inflation devalues the debt and gets us even more leverage, if you discount the effect on the us population
Hopefully, for the good of our nation, the economic effects of Trump's trade wars will be felt by American voters before the Congressional elections.
6
Why is there no mention of the fact that China holds $1.2 trillion of US government debt. If the Chinese don't roll this over US interest rates are going to go through the roof. Do you think that there will be no effect domestically? And another point. I don't know a single competent economist (Navarro is most definitely NOT in that group and Kudlow, who failed his masters, is not even an economist) who believes in mercantilism any more. Running a trade deficit means that foreigners are providing you with more goods than you produced. Surely that can be a good thing?
4
America can not possibly thank Mr. Trump and his personal swamp for once again making Chia Great!
It is baffling how Mr. Trump managed to go bankrupt so frequently.
5
Doesn't Trump know that most of what is sold at Walmart comes from China. There is no way that a US company can make everyday consumer goods cheaper. Trump's trade threats hurt us more than China.
4
Hey Trump, "the 70's called, they want their economic strategy back!"
2
This is all so very surprising to me. I would have thought that after his multiple failed businesses and bankruptcies, Donald Trump would have been far better at this whole business/economics thing. Who could have expected this?
2
After all those high-priced bribes that China just paid to the Trump family (patents for Ivanka, etc.)... So much for doing "business" with Mr. Trump. We're all victims of his cons.
4
The Simple explanation those those not really paying attention, or blinded by dislike of foreigners:
The price of everything you buy will soon go up, but your paycheck will not. What’s driving these price increases? Tariffs, also known as taxes. That’s how last years tax cuts will be paid for. Increasing taxes on everything you buy.
10
Correction: taxes on things you buy from China.
Now feel free to buy American.
4
Yes, if it exists, and at a new higher price. Supply and demand, baby!
Mmm - And you really think, that US Corporations and Businesses will sell for less then China (even after paying for high tariffs)? You are kidding! The prices for American goods will go way up and if there is a difference business will just cash in on the difference.
And 3-2-1-0 the economy will be down the tubes.
I run a large trade deficit with my supermarket, which I had selected because it had the best prices. That doesn't mean I attack the store as cheaters and decide to impose a tax on myself for shopping there unless I go shop at a more expensive, less convenient supermarket.
8
Very well put. Here's Trump: https://www.youtube.com/watch?v=IhgnYGEJYh0
2
This will ultimately not end well for American consumers as these tariffs will hit us deep in the pocket. But unfortunately Mr. Trump doesn't realize we all aren't billionaires -- and even if we were, we'd have to spend it on getting some kind of health coverage.
5
We should revive the TTP and give less business to China which is basically taking over every continent because they can do so and still be a communist country.
2
Trump wants to apply his business tactics (senseless bluff and reckless attack) into international politics and illusionally imagines other world powers, EU, China, Canada, Japan, India, to give him what he demands. He will soon bankrupt USA like what he did to his own business. All I can say is "Mr. Trump, you are not a qualified leader of the United States. Your stage should be a reality show rather than international political arena."
3
Ask your mother, your father, your uncles and your aunts to vote in November. Vote out the do-nothing Republicans. That is the only way to salvage the situation. We cannot afford to have a Republican-controlled congress.
8
Trump apparently wants the North Korean economic model: No trading partners, falling prices for farmers, robust deficits with no China bond-buying, broken relationships, and oh, glorias military parades. Thank you Chairman Trump.
5
China can you make sure it is the Red Republican Welfare States that suffer the most in this trade war? While you're at it hack Trumps accountants computers and release his tax returns. See this isn't treason anymore ,Trump did it so all bets are off.
6
Only a Donald Trump could one minute brag about the economy and then in the next create trade chaos which will only do it harm.
4
Given Canada's experiences over the past 18 months, we have every reason to watch this US/China confrontation from the sidelines.
Undoubtedly, Canada's economy and economic options & prospects will suffer some collateral damage during this conflict but both the US & China by their recent actions illustrate that each wishes increasingly to operate outside the rule-based international trade system that has served Canada well since WW II.
Canada, insofar as it can stand apart, has no interest in joining the US & China in a transactional obsessed, Darwinian, international trade & geopolitical gamesmanship arena of their own making.
3
More taxes from the new Republican party. We all pay for this you know.
4
North Korea is still close to China right? Let's see if they wind up being used to exact revenge upon Trump's policies. All Trump seems to be doing is unraveling decades of work with his tariff war. Hair trigger decisions without backup plans aren't going to change things for the better. If I were head of any other nation in the world now I wouldn't make any deals with the United States until Trump is out of office. He is too mercurial, lies too much, and untrustworthy. I would however, go out of my way to develop alliances with other countries that are not being run by incompetents or refugees from the insane asylum: people who know what it is to be responsible, etc.
2
When I learned economics, there was no thought of asymmetric fidelity to the rules. All the demonstrations of gains from trade relied on good faith and no tricks. China does not allow capital movements. China does not allow foreign ownership. In essence, their joining WTO and MFN were a ruse to get asymmetric access to us. Trump is more right than he is wrong. In order to truly earn free access to American markets, China would need to undertake truly transformative structural and operational reforms. In the meantime, a strong defensive trade position is justified - and is precisely what China has done to us since the beginning of this ordeal. Another person who agrees with Trump on this? Elizabeth Warren.
9
What about Trump's tariff on Canada Mexico and Europ Unions?
Thank you! Most anti-Trump fans have recently become back-seat economists. Yes, indeed Ms. Warren does agree with Trump.
1
Response to rjs7777 - I agree with you; Trump's rhetoric on this is right. What is questionable are his capabilities and competence to pull this off, and his actual motives when taking into consideration his lifelong flagrant personal corruption.
1
Trump doesn't seem to have any problem with all the special deals he and his family get from foreign entities seeking advantage. He's building his world alliances on getting the best "deal" for himself, not for the country. Certainly China should go after Ivanka and her sweatshops.
It's a vexed problem, but Trumpistan is not going to like the result of this. You can't just dismantle the supply chain and expect it to help US business. Gas prices are already going up. Eventually cause and effect are going to turn on the lights for the delusional.
Meanwhile, we've been exporting our pollution and toxic waste since forever. China has already messed us up by refusing to continue to deal with our recyclables. We all need to stop saying "but we recycle" and embrace a more circular economy. Canada's story about dairy is a ray of light about sustainability.
How long, oh lord, how long.
35
Eventually cause and effect are going to turn on the lights for the delusional...."
NO, they are , as Tom Lehrer would say, "blind to his obvious faults".
This us Trump pandering to his base. This is to fire up voters to try to keep Republicans in office during these elections.
2
Here is what Kudlow wants to accomplish. China's advantage is lower labor costs - US is going to offset it by imposing tariffs. Chinese (it applies to all other foreign countries) goods become more expensive than US made ones - consumers will shift to domestically produced goods. This extra demand would push the local economy. Tax break would provide an extra local demand component (otherwise it would benefit foreign producers of cheaper goods). If it works - great, US workers will benefit, at least in the short term. However, the average consumer will have to pay a "domestic tax" as US made goods will be more expensive.
5
Kudlow is a FOOL is he continues to hang with trump---the next one won't be so mild and his family will be getting the bennies.
1
Even if your scenario pans out, are you sure that US workers will benefit? Any sensible manufacturer now who wishes to expand production doesn't invest in human labor -- they invest in automation. Sure - somebody is going to have to design the robots, and repair them when they break down, but that doesn't help your assembly line worker very much. And -- short of banning the use of automation in manufacturing -- there's not a darn thing Trump can do about that.
2
This is not my scenario. This scenario has been used in the past. I am just outlining it here. And yes, I have rolled all automation into "short term" benefits.
Please don’t pull David Ricardo into this. His theory of trade made a number assumptions that were unrealistic. Among the biggest Ricardian fallacies is the assumption of immobile capital.
Ricardo believed that capital wouldn’t move between countries because of market friction, but also because capitalists were fundamentally patriotic nationalists. Even he acknowledged that if capital were mobile, capital for production would flow to the low-cost producing countries. In today’s world of globalized capital markets and a non-patriotic investor class, this is exactly what happened.
More importantly, Ricardo’s theory was formulated when employees were viewed simply as units of production. As such, if a worker was not needed, they were simply let go and costs went away. This is no longer true. People without jobs must now still be paid for by fellow citizens, in the form of assistance for housing, food, medical care, cash benefits, etc. As such, the benefits of free trade must now be offset with the costs incurred by the social safety net.
Lastly, Ricardo’s theory doesn’t consider political costs. For example, China is using its gains from free trade to challenge the U.S. militarily, which is helping to drive the U.S. defense budget in response.
21
Seems you have misunderstood Richard's theory.
In today's worlds,Richard's theory is far from enough to understand international trade and global value chains.
Just to be clear, putting tariffs on both Canada and on China, by far the two largest trading partners of the US, encourages them to trade more with each other and move away from the US marketplace. Real smart.
97
My earnest hope is what you suggest happens and we suffer a second Great Depression.
Let me see if I have this right. We will have Tariffs imposed by Europe, Mexico, Canada and China at least.
30
rhetorical question..... is there any real thought put into this? on one hand trump and congress pass a huge tax cut that will reduce revenues to our government by billions (trillions?). they justify it by saying the bump to the economy from the cuts will "grow" us out of the deficit...... now they are starting a trade war with china and our allies..... where exactly is this economic growth supposed to come from??
65
I am willing to bet that there will not be a trade war. The moment foreign markets for American exports start getting shut down because of retaliation by other countries, Trump will have to back out. Remember that we live in a democracy, however imperfect. Political pressure from affected farmers will force Trump to realize that he or his party need votes to remain in power. He is not a dictator and the Republican party is not the only party in town.
Is that a whiff of Depression in the air?
31
Depression? Yep. Right after the mother of all credit bubbles finally gives it up. First we must give the banks time to take maximum advantage of the gutting of regulations and weakening of consumer protections. But yes, a reckoning is at hand.
15
More accurately, yet another reckoning is at hand.
1
A serious market correction to equal the Great Depression.
trump, an enemy of the people. It will take time for the truth to prevail.
33
But that's all Ok, because we will soon be trading like crazy with our newest pal, North Korea, and that'll surely make up for all the exports we loose to Europe, Canada, Mexico, and now China. What do you mean, it won't? Numbers, who needs numbers?
34
And that was my exact though when Trump started swooning over North Korea's beaches.
2
A bit too much on the nose perhaps, but there it is -- Trump continues his 'bull in the China shop' trade policy. And guess who'll get to pay for all his crockery?
19
I can't think of a product that doesn't have a chinese part,They dominate the Blind Rivet & fastener products. I don't think we manufacture any Standard Screws in the United States, or for that matter any Blind Rivets. The Companies that used to produce these products are out of business, & those that remain find it less expensive to buy from China then produce them.Even the USA companies that kept their machinery will find it difficult if not impossible, to find the people necessary to operate the machinery used to produce Screws & Blind Rivets.These Header Men that run the machinery are skilled workers & are in short supply & if your lucky to get one you will have to pay dearly for them.
Lastly if we eliminate competition from China, with Tarifs , there's always Vietnam, Pakistan & Bangladesh, and all of Africa.In essence the Tariffs are all to do about nothing , it will not bring back the factory jobs.
47
WRT the short supply of skilled header men. Before China started putting the US firms out of business, they too didn’t have skilled header men. Their firms trained their workers from the ground up; so can we. And isn’t it skilled jobs with good pay that we need to reconstitute our middle class?
In an old world Spanish bullfight the proud matador dances around a massive bull and observes how the bull charges at his cape as accomanying banderilleros rush to insert banderillas, literally "little flags" into in the bull's shoulders. Through further taunting by the matador the bull begins to stumble and die a slow death before the final strike with sword.
Could the propsects for an escalting “tit for tat” trade war with China strangely resemble a bullfight in the making? If tensions continue to escalate, this could very well be the beginning of the end of a 9 year “bull” market.
10
I'm not an international economic expert but starting trade wars on 3 fronts (Canada, Mexico and China) after alienating most of our European allies is foolhardy at best. Trump supporters seem to enjoy "Washington: the Reality TV Show", starring John Wayne Trump, as the"damn the torpedoes" President of the Free White World. The whole situation is numbing. But remember that's why he does it. So standby, it's going to get even more bizarre.
59
He also does it because Putin wants him to weaken this country.
I trust all the Trump supporters and recipients of those large tax cuts are prepared to absorb all the T Bills that may be redeemed by China. They don't need to levy tariffs.
20
time for a segue away from his non-profit piggy bank raid! Donald.... say it aint so!
1
Chinese have been winning a full blown trade war since they first interacted with USA. All interactions have been one way favoring Chinese. This includes people. Thus “there have been millions and millions of Chinese Americans but ZERO American Chinese”, said Eric Liu of Harvard. America is a doormat. Obama promised HOPE and CHANGE but it is RECIPROCITY that we need. Any deal with Chinese needs to be monitored. Expect tricks. Fake Apple Stores, and a WTO agreement that is a joke are 2 sides of the same coin, the same person. I expect the NYT comments to be anti-American, partly because Americans commenting are vastly outnumbered by Chinese trolls
2
You have failed to mention the "WalMart Effect" on manufacturing that has been grasped by many retailers.
Is the Chinese government at fault, or, are we, the consumer, at fault?
We have demanded goods at lower prices so we have what we demanded. To enact tariffs are not the answer nor is "bringing back those jobs" that Trump screeches about. Who will be willing to perform many of those menial and repetitive jobs and tasks?
Thus, the WalMart Effect...
1
Hey, perhaps we need a multilateral trade agreement with Pacific rim countries to try to counteract this, you know, like a trans-Pacific partnership?
2
It seems to me that the real point of all this is being missed. The rich and powerful, and the wannabes, WANT to ensure that the rest of us struggle to make ends meet, make us angry about it, and use that anger to get us to vote for them by blaming other people/countries for our problems and promising to thump them and make it all better somehow by doing that. Anger helps to ensure people don't think about what's really going on. These kinds of methods have given the world Hitler, Mao, ISIS, Pol-pot and on and on. And we just keep falling for it.
50
Very well explained. I would add fear as well. Anger and fear. That's also a result of watching the news. Anger and fear result.
2
Trump is looking for another bribe. Appears the ZTE bribe may fall through.
7
There is a bright side. This is good news for Canadian farmers. They're more able to replace -- amongst other things -- American soy, corn, pork and beef in the Chinese market. And it will get even better, once the American trade war with Japan begins.
Does anybody truly believe that Trump has thought this through? Or thought about it at all?
51
Those who have been conned, subscribe to the Trump Theory of Business and Bankruptcy, or both, believe that Trump is on to something. Ya know, the piggy bank thing...
When the costs of any trade war sink in at the consumer level in Trumpland those who are true believers will blame Hillary or Obama for those high prices that has eroded their temporary tax cut.
1
Re the (rhetorical) question from "Curious" about whether anyone believes Trump has thought this through: Trump is like a two-year-old, with the same utter lack of impulse control. He doesn't think, he feels, and all of his feelings are about his own needs. He's the Toddler President, who demands to be the constant center of attention and throws temper tantrums whenever he gets miffed -- which is pretty much around the clock.
Running to buy a tv today
3
Let’s see what happens when the US Treasury tries to sell issuances to cover the US government debt that will escalate because of the billionaire-benefiting tax cut. Somehow I doubt China will be an eager customer. I’m not sure how many customers there will be for US government debt. It may be just the kind of thing that the Shanghai Cooperation Organisation (SCO) has been hoping for.
Watch out Social Security retirees!
9
A few years ago it would have been absurd to suggest that a president may have vowed to impose tariffs on China that could lead to a damaging trade war because he was in a bad mood about a government report report not confirming his crazy conspiracy theories, and instead suggesting that he owes his election to a man he despises.
10
Hope y'all like soybeans. Seems like your going to have a surplus of them this year.
81
So.
• China is a command economy. Ever saw a single Toyota plying Beijing? No? That’s because when the Chinese government says no to a brand, that brand stays off Chinese soil.
• The top ten US manufacturing corporations all have 90% percent of their sales via the Chinese market. As an example, if China bans P&G products, the company will collapse in the next quarter.
• The China Economic Plan spans 50 years, in physical book form and a required reading for all government employees, businessmen, those in the academe, and anyone interested in governance be they lawyers or scholars.
• The US Economic plan is, sometimes, a powerpoint slide. Oftentimes it is a tweet from Trump.
“Trade wars are easy to win!”
— Donald Trump, the 45th President of the United States
108
Here's P&G 2017 Annual Report.
There's a chart showing what % of sales come from which region of the world. China is 8%.
http://us.pg.com/annualreport2017/annual-report.html#/Financial
1
If this does not convince all Americans that Trump is a moron what will?
14
This is the perfect storm for trump enabling him to raise a false flag operation aimed at distancing himself from his Russian overlords in the face of increasing public and congressional scrutiny in regards to malfeasance and the 2016 elections. That it's absoluting lethal stuff he's recklessly playing with doesn't concern him one bit. Everything trump does is a stunt with a very calculated eventual outcome. His actions are not 'normal' or benevolent in any way. He's an evil, manipulative man.
5
Trump's goal of the trade war with the world is to create chaos for his own benefit, in the end the American people are going to pay the price (higher prices in Warlmat and Amazon). Trade by its very nature, benefits both sides, otherwise it will not go through. As long as there are trades, there is going to be deficits and surpluses. Even though US has large trade deficits with China in recent years, but the percentage of deficit with Asia hasn't changed much over the years. Whats has happened in the globalized worlds is that all the trade deficits we (US) used to have with Japan, South Korea and
other Asian countries now all become deficits with China. That is large due to role changes in globalized manufacturing processes: China is becoming the global assembler for the final products, while other countries are the parts suppliers of those Chinese products. Apple's iPhone is probably the most cited example: China probaly
gets $10 of each $1000 iPhone sold, while about $200 goes to the suppliers for its components (from Japan, South Korea, etc.), while Apple got the rest. In addition,
China got the $1000 on its trade tab.
5
Every war has casualties as will this trade war with China. There will multiple casualties, from producers (i.e. farmers, manufactures) to consumers to the markets. Mr. Trump appears to accept these casualties as a part of waging this war. Will Mr. Trump's supporters and critics find the economic casualties acceptable? The mid-terms may very answer that very question for Mr. Trump and for this country.
8
I'm not sure that the effects will be felt in November. It takes time for these things to work their way through the markets. Perhaps Trump is counting on that.
6
Trump supporters are not looking at consequences of his actions. They only see Trump's actions through glasses of magical-thinking. Unfortunately, the mid-terms may not hold any hope against this spiteful man who is playing the world as a giant playground. Someone cut in line ahead of him at the seesaw and must be pushed to the ground.
1
I doubt that Trump/Republican supporters will turn against either Trump or the Republicans. They truly beleive that all the problems they will experience in the upcoming trade war are the fault of the Democrats.
What about the tax and other breaks cities give manufacturers such as LG and Samsung to build factories in them? Isn't that unfair trade?
6
So confused and unpredictable Trump is that one day he promises to help the ZTE-the Chinese telecom company blamed for violating the US sanctions-and earns Chinese appreciation for this, now declares a fresh round of trade tariff war against China to be obviously met with a retaliatory action by the latter. A glaring example of the Trumpian policy flip-flops.
15
Trump try to help US. Believe me, as a Chinese, in your country, lots of officials were bribed and help Chinese government, even your Facebook CEO offer U.S. user profile to Chinese government.
3
Trump creates his situations, in which he must then control the outcome. It's a large game to him, the tactic of negotiating that
which he creates. This mind game mentality is disruptive and diminishes our nation. This isn't a game show Mr. Trump.
19
This isn't the way I'd do it, but China is not our friend and the sooner we stop doing business with them the better. We send them $ Billions and they send us cheap junk, they then take our $ Billions and build aircraft carriers that we will have to face soon. We need to stop being stupid and have a consistent policy of disengagement with China. We should be trading with people who want to be our friends, not those who mean us harm.
9
Looks to me like we like we are losing all our friends though.
1
Unfortunately, the list of people who want to be your friends is getting pretty short. I mean, if Canada is -- as Donald Trump has declared -- a security threat to the USA , well then who isn't?
1
That would be nobody now.
2
I see a pattern of disingenuous strategy by Trump and his Congressional Republicans to further crowd source the vast wealth of hundreds of millions of Americans. The tax cut law still incentivised the export of American wealth and business by making the foreign profits tax lower than the national corporate tax. The tax law has seriously threatened to bankrupt the government over the next ten years heaping trillions of dollars of debt on our children's futures. Now further injury will occur to the American citizenry as the tariffs on foreign imports are really a massive tax on American consumers to offset that tax law harm and reduce the future deficits. The American public continues to be victimized by the party of disloyal profiteering business.
17
There is a reason why tariffs were discontinued. They only end in escalation, failure and economic hardship. Competition in the marketplace is needed, not these neanderthal tariffs.
7
Maybe the only place to admit you're wrong and that you've been snookered by a grifting, glad-handing snake oil quack is the privacy of the voting booth. I'm certain it's the only place that counts.
25
Never seen this blog more united.
6
What, some of our fellow commentators actually believe that China exemplifies " free and fair trade "?
3
There is no free-trade with China. It is a one-way stream.
1
If trump is worried about the midterm election he should really be worried now.
11
Dear Xi,
Thanks for your help in setting up my photo op with Chairman Kim. I look forward to your continued support. Please view these new tariffs as a demonstration of my appreciation.
Sincerely,
Donald J. Trump
23
Can I briefly explain something about trade deficits, especially with respect to Canada? Maybe someone in the White House will stumble across it.
Canada is a small population country with a lot of raw materials to sell. The US buys energy, oil, minerals, raw metals, grains, etc etc from us in LARGE quantities.
There is no way Canada can keep up with that by buying more washing machines, cars, processed food, etc. etc. from the US. We do our utmost to compensate by overconsuming media like TV, movies, music, etc. and many services. Because of this, the US has a small trade deficit with Canada in goods (and makes big profits by turning these reasonably, transparently priced materials into stuff to sell). But good old Canada, your buddy, manages to pay that back by devouring your programming, software, yada yada, enough that the deficits are balanced.
So please explain to me, Uncle Sam: what other country would you rather live beside? What’s with this hideous metawall you are trying to build between us? And hey, it’s an inch over into our yard.
My growing concern is that some deplorable people will refer to my second paragraph here and decide to just take over all of it. Why buy the milk when you can own the cow?
87
It's even worse than you describe it. Yes, Canada has a trade surplus vs the US in goods and materials, but an overall trade deficit with the US, since the US sells a lot more services to Canada than the other way around. In other words, the overall trade balance (goods AND services) is actually in favor of the US, not Canada. But, why would Trump let facts get in the way? He doesn't need facts, he just invents his own.
2
Hi Tony,
Some of us would like to help Canada increase its small population. We here on the West Coast did not vote for Trump, although there are a few deplorables among us. Would be happy to have our states annexed to your country, and then deport the deplorables to red states.
2
Your concern is real.
You need to offer Canadian citizenship to all Blue Staters, then annex us. You'd be cheered as liberators.
2
So it's now going to take them until 2030.
So much winning!
At least I still got my cheap TV. I'm going to need that for watching the propaganda movies of my portly new North Korean overlords.
32
Well guess who these higher tariffs will effect in this country - the middle and lower middle class who do most of their shopping at the WallMarts, Target, and other Big Box stores. These places buy exclusively from China!!
Are YOU listening to your leader?? He's not helping you!!
24
I would imagine China is saying, to borrow a phrase from Dirty Harry that Reagan popularized, “make my day!”
3
"That would potentially dampen economic growth that has been stoked by the administration’s tax cuts." Really, New York Times? And on the front page?
9
Very pleased that you noticed that line also. I hope Ana Swanson isn't counting on a raise. Maybe a new career at the White House ?
1
Trump is not a savvy businessman. He won't be able to stiff China then threaten them with lawsuits which is his usual m.o....but he is going to stiff American consumers and businesses in order to impress his moronic voter cult. That's just how he rolls, y'all.
27
This sounds great to me. I want a full-blown trade war with our largest trading partner, China, because it will grievously wound the American economy. From now until the 2020 elections, I want Americans to be losing their savings, their jobs, their cars, their homes, their health care, and thus, their faith in Trump.
I realize the economic downturn won't only affect Trump supporters. But those opposed to the idiot are still partially responsible for our current situation. And the Trump supporters can only change their tiny minds if they're directly, irrefutably affected by Trump's nonsensical behavior.
In the next couple of years, I'm hoping the stock market drops 30%, unemployment reaches over 15%, gas goes up to $5 a gallon, and various other calamities. It probably won't get that bad, but as long as a lot of Americans suffer, Trump shouldn't get re-elected. And that is the most important thing America can do for itself and the world in the next few years, is bring the Trump regime to an end.
39
It's a question of delicate timing. Great Recession II is coming, but it is a qestion of when. Let's hope it comes on quickly, well before 2020, so that the whole country turns against Trumpism while there's still time.
9
I wish I could be that optimistic about Trump supporters. As I said earlier, they are in magical-thinking land. They will not attribute any of these 'bad things' to their leader.
2
Dan, I predict we will have a major correction in the stock market, worse than the Great Depression within 6 mos.
Trump will end the tariffs on China as soon as they give Ivanka more trademarks.
18
Good one!
1
Thanks to Obama, the economy is doing good in spite of Trump's policies. Starting with the trade wars, imploding deficit due to tax breaks to the rich, etc Trump is doing all he can to change that.
16
I'm glad I don't need a washing machine or a car~
14
But what about those who do?...
Trump can run this country like he has run his businesses.
All we need do is hire a good attorney and file for bankruptcy.
Then we start over, with a new beginning.
It's the American way. Great again.
35
It's unfortunate we're taking this route, but the one positive I take away is rural and "working class" areas are going to feel the burden of the retaliatory measures imposed by China. In spite of this fact, I have no doubt many folks in red (or should I say orange) areas are still going to support the Trump regime. Are their main concerns really about the economy or about the changing demographics and what they perceive as cultural displacement?
4
We have a $375 Billion+ trade deficit with China. China doesn't allow our top service companies to operate (Amazon, Google, Netflix, Uber, Facebook) and continuously harasses/restricts Apple, Facebook, Cisco through censorship and IP theft. Any US company is forced to transfer tech to a local partner who steals the tech through back door and sets up their own shop undercutting the partner.
USA did not start the trade war as China has engaged in unilateral trade war for 20+ years. Free trade proponents said when we lose low cost manufacturing jobs we move up the value chain. We did but all of our high tech service companies are banned and in the sheltered market there came about Baidu, Tencent and Alibaba and they are free to do business in USA. What gives? It was high time to take action after empty talk and more empty talk.
I support free trade when it is fair as it mutually enriches and benefits both the trading partners. But continuing to engage in trade when the rules are so patently unfair and biased means it is not benefiting USA anymore commensurate to the benefits to Chinese economy.
6
The fact you have so few Recommended votes speaks well to the airy, breezy cluelessness of the readers here.
2
Or perhaps to the fact that addressing the issues with China are perhaps more complex and demand a more thoughtful approach then the one being enacted by our stable genius. The fact that there are trade issues to be addressed doesn't make this move any less wrong.
George W. Bush entered the presidency with a booming economy thanks to Clinton and an actual budget SURPLUS. Eight years later we were teetering on the edge of a depression. Obama fixed it and lowered the unemployment rate by SIX POINTS , all with actions taken in his first two years , after which he received zero assistance from the Republican controlled congress. Here we are again with another Republican president who knows better than all the experts, instituting unnecessary tax cuts , reviving failed trickle down economics , and now worse upsetting the apple cart of international trade and political relationships, stripping banking regulations, etc. When the Trump mud hits the fan, as it surly will, hopefully we'll survive it again, and elect yet another Democrat to clean up the mess. True to American form, that Democrat will receive no lasting credit for saving the day.
44
You left out the part about Clinton's GOP Congress.
You mean the helpful congress that impeached a president over an issue that clearly didn't constitute "high crimes and misdemeanors" ? The same congress that under Gingrich invented the government shutdown that has now under their "leadership " become an almost annual event? Let us also not forget that it was massive deficits and a sluggish economy after twelve years of Reagan/Bush that carried Clinton into the White House in the first place.
Let’s see if I have this figured out. The tariff money goes into our treasury. Prices go up on goods to all Americans. Money flows out of the Treasury in tax cuts to the wealthy. Trump economics.
16
I don't understand the reason behind this tariff business. We routinely have an annual 1Trillion dollars government deficit. A 50 Billion dollar tariffs is really nothing (5%)compared to our annual government deficit. Is this a Trump tactics to divert our attention from wasteful government spending? Or is this a tactics to grasp our short-span attention to something less important from the critical Muller investigation? I think we are in trouble when our president is bogged down every day on daily trivial matters instead of important long term national issues.
11
I think some Chinese official insulted him and this is the result. Trying to think of Trump as having a plan is where you really think too highly of him.
4
You have to ask why GHW Bush pushed to give China ‘most favored nation’ status thirty years ago. They were not our friends then. They are not now. Some bad policies take a long time to prove themselves.
China has been taking advantage all these years, and Walmart and the red state voters have seemingly done very well. We will see how things look when the price of corn falls to .50 a bushel and MAGA t-shirts cost $50.
Did Wharton really teach the doctrine that tariffs are good business practice?
5
The same tired arguments from "free traders" despite what has happened to America's middle class. If these globalists represent main line Democratic economic positions the Party is in deep trouble.
2
Enjoy watching prices double. See how much that'll help the middle class.
3
Silly person.
“free traders” are generally Republicans- the Party of Trump has overtaken the Republicans and turned them inside-out. In this case, Trump has taken a page out of Bernie Sanders playbook - protect American manufacturing jobs at any cost.
The second great recession is just beginning. I have scheduled landscape work on my property. I am now cutting the project down to 1/4 of what I originally planned. There will be many like me who are going to take a wait and see stance. Not good.
6
The problem is consumerism.
The world produces more than it needs and people "consume" more than they need. This "demand" to consume has created a system that we can't afford to dismantle, or change, without major players losing bigtime, to the tune of billions.
Whereas in the future we were more than willing to embrace new technology and let old technologies fade into obsolescence, today the powers that be are dead set on maintaining their cash cows at all costs, blocking, squashing, refusing, and doing anything they can to stop progress solely in order to protect their own wallets.
9
Great move by Trump. China regularly steals our IP. It also bars our best and most valuable companies from competing there, while we allow all Chinese companies to compete freely here.
For example, China completely bars Facebook, Google, Twitter, Snapchat, NY Times from competing there. These are some of our best companies, and China has ripped us off trillions in lost opportunity. Instead, China nurtures domestic competitors. Just take Facebook - China bars it and nurtured its domestic equivalent Tencent instead, which now has a market capitalization of $500B. That $500B should have been Facebook's/ours.
Those are just the companies that are completely banned. In many other industries such as the auto industry, China prevents US companies from operating there unless it enters into a joint venture and is majority owned by a local competitor. The equivalent would be forcing BMW to give up a 51% stake to GM for the right to operate in the USA. It's ridiculous.
This is not to even mention that their tariffs on us are much higher than our tariffs on them.
It's time to fight back. Past time. Glad we have a tough negotiator in Trump.
5
What Facebook, Google, and many other American corporations can get in China isn't necessarily "ours" because these companies try to avoid paying much in taxes. Meanwhile they're selling and collecting our personal data for dubious purposes. Also, many corporations have chosen to shift jobs and manufacturing to China to increase profits while quality has gone down. Retailers like Walmart have pushed many companies to manufacture overseas while stagnant wages keep Americans wanting and needing cheap goods. The problem isn't a simple us versus them. No one has really cared much about the American worker/consumer in a long time. I don't think any of the companies you mention are looking to share with American/Americans the wealth they might make in China.
11
That explains China, but what about Canada or Europe?
Trump is no negotiator because he does not know or care what he's doing.
How about ZTE? Was that a tough negotiation?
China has been taking us for years, no doubt. I'd restrict Chinese student visas (the Real IP theft) and that alone would possibly get the job done.
If not, we talk to our allies (can't do that now), who have the same beefs we do with China's one-way trade, and plan a targeted and coordinated trade attack. That would get their attention.
Trump's strategy has the Chinese clapping and laughing. A dinners they toast Trump because they know they've already won since they can weather a trade war far better than we can. Won't really hurt them a bit. With their command economy they can easily make adjustments.
They also have the will to follow through on an effective winning strategy, whereas Trump has something wrong with his monkey brain, he's a snowflake, possibly due to drinking 12 cokes a day.
He's an empty suit. He doesn't know you never, ever, start a war you've not already won. Instead, he thrashes around and gets played by a more steady thoughtful hand. He moronically started a war that China has already won.
Trumpsters need to think a lot deeper than merely taking Trump's tweets and the Fox News "analysis," at face value. That's all pablum for dummies. Con-men are pros at sounding good but the result is six bankruptcies whose cost comes from of other people's pockets.
1
@Nancy - "What Facebook, Google, and many other American corporations can get in China isn't necessarily "ours" because these companies try to avoid paying much in taxes."
If you would rather have Facebook and Google be Chinese corporations, that's your prerogative.
I'd rather have those engineering jobs in SV contributing to our economy. Facebook would have way more engineering jobs in SV if China had allowed it to compete and have $500B more in market cap.
And if those corporations use loopholes to save on tax, why should we blame them? Our stupid politicians should pass well-drafted laws. Fix them.
So far China (they will retaliate), Canada, Mexico, England, EU and Japan have said they will or have enacted retaliatory tariffs...all or most of them will be directed at Trump supporting states...the total for just China and Canada will be over 73 billion dollars. I hope the farmers and the manufacturers sleep will tonight.
8
It is world war again after a brief period of nationalism. Luckily the weapons are not directly lethal this time around.... yet. Has Trump not learned from his German ancestors that starting a global war on the grounds that everybody else has taken advantage of you and that you have the "right" to hit first
did not end well for the one who started the fight in the two last instances?
21
It seems the world is realizing that the United States of America didn’t care to benefit other countries. The USA gives foreign aid, although is minimal compared to how much has been taking since the end of WW II. The USA has started wars, invaded countless countries around the world. Destroying cultures, poisoning the land with bombs and chemicals.
4
"The White House is formulating a plan for restricting Chinese investments in the United States..." Did someone forget to tell Trump that China is the biggest owner of U.S. debt and already holds more than $1 trillion in U.S. Treasuries? Guessing so. If China wants leverage, it already owns it!
7
Trump lost sight of the original objective of returning American companies to America to build our manufacturing base. These tariffs are a blatant attempt at offsetting the 2017 tax cuts that crippled the government budget going out ten years. Trump is trying to reduce the large future deficit by victimizing Americans with what is just another consumer tax.
9
We have watched China rip us of for years with industrial espionage and making any company who wants to do business there have a Chinese partner who can then reverse-engineer products to produce knock-offs. So, the belligerent part of me has no sympathy for Chinese trade practices.
The rational part of me deeply distrusts any initiative coming out of this administration and fears the outcome of this trade war.
If I were to agree with those who encourage China to selectively target counter-tariffs on red states, I'd be siding with those who subscribe to "the enemy of my enemy is my friend" thinking.
4
This policy seems like it was pulled from Bernie Sanders’ playbook. If any Democrat tried this the Republicans would run them out of town. It’s simply astonishing. Trump had managed to make the Republican party turn a full 180 degrees on trade policy.
24
Don't think the GOP is on board. I personally like the notion of trade deals which don't burn the US.
1
"Many people" of the United States voted for this. Hope they are happy.
4
Here the biggest loser could be the United States. China has broadened their trade with many continents. China’s approach appears to be less threatening that United States. The USA has been seen around the world as dominant power, not to open to feedback, from the others. The USA has been interfering in internal affairs of the countries where has been “trading” attempting to control many aspects of their economy, and politics.
8
Wouldn't it be great if the Trump administration could focus on "Making America Great Again". Here's a little list of starter projects.
1.) Faster Internet for Everyone
2.) Elimination of "dead" spots of cellphone coverage. For example, Quartzite, AZ along the I-10 where I always lose the signal.
3.) Clean up the rest stops along the interstates.
4.) Fix a few potholes.
5.) Put in a public shower in Death Valley National Park for park users.
6.) Eliminate having to pay for air and water at gas stations.
Good luck.
4
It's another bluff. I don't believe anything this president says. He's creating red meat for his base, to distract them, and incite them. As his legal troubles mount, Trump keeps upping the ante. He's playing with your money, America.
25
Gee, let's all shed a few crocodile tears for the members of the US Chamber of Commerce who worked diligently to help elect Trump. Not like he didn't tell you he was going to be the world's greatest protectionist. Ironic, that you were far better offer living with the Obama Administration's regulations than you will be with Trump's oppressive tariffs.
10
Trump once again is trying to fulfill campaign promises rashly and thoughtlessly. Destroying free trade is not a way to bring back American manufacturing. Instead it hurts everyone by increasing the prices of commercial goods. Times like this it is clear that Trump is not even trying to do what is best for Americans, despite the rhetoric
8
This is the beginning of the rise of China and end of US dominance. People in China have already realized that they must be self-reliant; that the US is not a dependable partner, especially in the high tech. sector. ZTE was the wake-up call.
To try and stop a country's technological rise is beyond the pale, just another facet of longed history of white-man enslavement mentality.
3
President Trump needs to start all over again and this time do it the right and respectful way. First, he needs to apologize for his outlandish behavior and then call a meeting with all of the major players and work out a tariff solution which will be fair to the U.S. and all countries involved. It will probably take an exorbitant amount of work and negotiation to accomplish but foremost it will show that we are willing to take the lead and work with our business neighbors, partners, friends and allies.
The tit for tat tariff war is only going to hurt all involved especially us, the American consumer.
4
Here we go again. The trade-war, tariff loving Trumpers might want to step back and think about how the US would respond if China was the lead aggressor in this tariff debacle. They also might think about the reality of the interconnected global supply chain that benefits American companies. Of course China is a rising economic behemoth and has manipulated its currency as a 'developing' nation. There must be better more 'current' ways to deal with these economic issues than simply slapping on tariffs which will only invite tit for tat retaliation and solve nothing. China is not about to be bullied, nor is our own great leader.
3
Another shortsighted hip shot. After all it should not be forgotten, that the American consumer because of the shrinking purchasing power, felt forced to buy cheap imports. American industry was not able and nor capable to produce cheap goods.
Mr.Trump will soon regret to have started a trade war. After all a lot of purchases as well as the government budget are financed through credit.
The Chinese Authorities will try very hard to replace the Dollar as trading currency. By doing so it will make the "green weapon" - the dollar useless.
Mr. Trump is the countries worst enemy and will with his daft policies destroy the country and rest of the world.
The US will end like the Romain Empire.
The the free world prefers the US as leading power, rather than China. However with the current President the fall has already started.
6
America’s economy is now built on companies the acquire peoples’ private information and monetize it. Other countries are onto it and shutting it down.!our “strong”!economy is based on theft - it’s a house of cards - not exactly a strong position to go to (trade) war on.
16
Typical Trump lover response from the "heartland": Well, I don't know if this is a good idea, but I support him because he knows what's best for me.
6
Good. Now drastically limit the number of Chinese students and OPT/H1 workers allowed into the US. Stop educating and employing adversaries at the expense of US citizens. If China wants to compete, let them do it without the US know-how and massive theft of IP.
4
Not so fast. No doubt Oxford, Cambridge, the Sorbonne, LMU Munich or Heidelberg will be happy to snap up talented Chinese students. Which will later give them contacts with which to enter Chinese markets. Contrary to what seems to be popular opinion in the 'states these days, the good ol' USA is not the only game in town. Trump needs some schooling about something other than stiffing east coast contractors. And he's going to get it.
6
You have it backwards. Knowledge does not disseminate top-down like that. It's the US that needs the flow of Chinese graduate students; without them, US cannot fill the spots necessary to do research. The only alternative then is doing what NYC is doing to Stuyvesant -- lower the standards. I welcome you to take a stroll around Berkeley or Stanford and get a sense of Chinese population and what I'm talking about. It's the US that's stealing Chinese talent and know-how -- this is what the Chinese think.
3
FINALLY!
Now Ivanka and Jared can get down to some SERIOUS trademark and hotel bargaining.
MAGA MAGA MAGA
3
The last time that we had a trade war in Asia did not end well.
5
There is zero trade policy... every action and tweet is a spur of the moment action. One day, we're trying to ensure ZTE is solvent and the next day we are enacting tariffs...
The Madness of King Donald is upon us... we will be lucky to survive.
4
Here’s a better idea. Get every nation on the pacific rim except China to enter into a free trade agreement, and then gang up on it in a multilateral way to force it to change. You could call it the Trump Pacific Partnership for all we care. Get it together, man.
The fundamental flaw in this Bannontrump deconstructive approach is that China has outgrown its dependence on the US and will only increase its influence as the US diminishes. Make Asia Great Again.
9
An unstable and poorly educated president engages in isolationist, nationalist economic and trade practices. Followed, of course by trade wars with allies and adversaries alike. Has Wharton found a way to revoke the degree his father bought him? It's clear he learned nothing during his time there.
26
Trump prefers bilateral trade negotiations, because that's what real estate deals are, and what he knows. He's looking for an "advantage" in every deal, but that doesn't work in a multilateral world.
You can try to "optimize" each individual bilateral deal, but in aggregate you will lose because it's impossible to do the "global optimization". The trade organization he is trying to undo is there for a reason, and the WTO, remember, was created by the US.
20
Remember the Trans-Pacific Partnership, which ended up receiving heavy criticism from R's and D's in 2016? As a route to getting China to change its practices, I'd prefer the TPP to a trade war.
49
Getting out of TPP had seriously undermined China negotiations. Trump gave it to them for free.
1
It's on now. This is real, not just talk. We are in round one and there is no way this does not escalate. We hit them, then they hit back. Then we hit again and so on.
No one wins a trade war. Everyone loses. Consumers always lose and end up paying higher prices. There will be bigger losers. Many jobs will be lost, mostly in manufacturing but in services as well. The flow of capital across borders will diminish. Investment will be curtailed. Business will put future plans on hold. GDP will decline.
Trade wars cannot be contained. They spread and infiltrate like a disease. They will eventually effect all areas of commerce because all areas are ultimately interlinked. This is going to hurt a lot of people and no good will come of it.
298
Trump spoke. An unnamed official in PRC' s commerce department responded with a promise of huge retaliation. This balance does not sound right. I guess CCP does see that their ammunition is far inferior. Trump should not overdo it, but he can get a mileage just with his words, once PRC has shown inadvertently its weakness, confusion and unpreparedness.
If this is what it takes to wake up the GOP and Trumps base, fine. We'll total this up in November!
2
Dear Bruce Rozenblit,
You're generally right, but I think this is going to hurt a lot of people, and a lot of good will come of it.
For one thing, this is largely going to hurt a lot of Americans, and Americans deserve to suffer. Not just the Trump types, who obviously do, but all Americans are wasting resources at a greater rate than any other nationality.
Next, this will be the only kind of thing that can reduce Trump's support. Trump's supporters wouldn't care if he groped Angela Merkel, cursed on live TV, bombed Puerto Rico, or anything else, but if they're directly hurt by his moronic policies, they'll care.
Lastly, the people in China this will hurt the most are the rich. They can take it. Nobody else over there relies on American goods.
5
Our pied piper in chief leads the acolytes to such wondrous music.
34
One more nail in the coffin of what is going to be an awful future recession. US deficits accelerating, corporate debt at all time highs, household debt at levels before the Great Recession, accelerating healthcare costs, etc. are all going to drive what is going to be a very bad outcome. And now a trade war that will not only depress demand but drive inflation. It will not be easy to get out of it either, unlike the Great Recession where at least there was some fiscal stimulus and Bernanke was able to cobble together a monetary policy that at least avoided a total disaster. Unlikely the same tools will work as well next time and the deficit will be a limiter. And a president who hasn't a clue about economics, is purely transactional in his thinking and is systematically dismantling the social safety net.
Good luck! Let's hope Marx was right and the next swing of the dialectic pendulum is toward Euro style socialism.
343
It'll be terrific if it happens. Americans deserve a recession, and it's the only way to reduce Trump's support. Bring it on.
5
I totally agree with you and I have been saying much the same thing. Economies depend on stability, stability of the countries that drive the world economy on a large scale, like the US, China, Canada, the UK, Germany, just to name a few. If trade has been unbalanced it’s because when your the worlds largest economy you could dominate the world markets. And you’re right about corporate debt, people who either don’t pay attention or just don’t want to know, don’t understand how corporate debt works, and how financially devastating it can be in a recession, clearly we didn’t learn anything from the Great Recession. That was a creation of bad fiscal policy by what party was in power..........let me think.........oh, right the GOP. In their haste to give way our tax money to corporate America, while totally ignoring the fact that they aren’t paying anywhere near the 35% corporate tax rate.
Trump is going to destroy a growing economy that was handed to him on a silver platter, so was Bush, after Clinton left office, and who through all his human faults, he did balance the federal budget and leave a surplus of money, something no GOP president has ever done....The people in the Midwest voted this idiot in, they deserve what they get, the rest of us don’t.
7
Don’t count on this, Mike. Congressional Republicans are already salivating at the chance to cut social programs because of the deficit they intentionally created.
When they decide what good to retaliate on with their own tariffs, I hope the Chinese have studied that Electoral College map that Trump apparently insists on showing everyone who goes to the Oval Office.
171
The have studied the US demographics like no one in the US has studied the Chinese data
5
I bet they have, the Chinese aren’t a dumb as Trump, they are far savvier than Trump. Trump is too full of himself to notice that he’s outclassed.
8
The Chinese have studied that map well. The Des Moines Register is already running regular articles about the impact of the steel and aluminum tariffs on Iowa industry and the potential impact of retaliatory tariffs on agricultural products on the Iowa agricultural industry.
Attention, heartland. This guy isn’t your friend.
737
Attention, coasts. Bring on the trade war. It's not a real war. China will lose because they need us more than we need them. What's your plan to fight back against China's abuse?
1
Unfortunately, they will suffer whatever horrors that will befall them as long as they can make others suffer.
Divided we fall.
3
It's the other way around.
Another day, another china shop meltdown.
No pun intended.
38
This has got to be coming from Vladimir Putin. There's no other logical explanation.
274
The sad part is, you probably can't rule out that idea.
3
An alternative: Remember the blusterer-in-chief's "trade wars are easy to win"? That's a mindset couched in the U.S. as global hegemon. So, is we is or is we ain't still the big bad boy as we were during his formative years when that mindset took hold?
It is estimated that granting China Most Favored Nation status, and thus lowering tariffs on good coming from China, has cost Americans 3.4 million jobs. But your right, Putin is the only logical explanation.
Does this include Trump Brand products ??? Why NOT ????
122
Trump is trying to crowd his own corruption and incompetence off the front page with this destructive nonsense.
He needs to be stopped. VOTE in November!
396
I agree. This is political theatre to keep his deplorables whipped up. Just as the administration is doubling down on their zero tolerance evil policy of separating families. There is no thoughtful policy behind this. It is just simple minded destruction that appeals to the lowest common denominator in our society. It is meant to keep the Mueller investigation and the Cohen investigation off the news cycle. I thought the evidence seized in the Cohen case was supposed to be turned over to the prosecution and investigators on Friday. I didn't see anything about it in the news or this paper. Thats a pretty big deal.
Good. I'm sure the Traitor Trump deplorables who shop at Walmart can't wait to pay more for the junk they buy there.
And besides, it's the fault of the Mexicans.
204
Not only that, the Mexicans will probably have to pay for it too.
4
So, when the American farmers cannot find foreign markets for their beeves and lambs and leather and woolen goods and dairy products and John Deere machinery—for shrewd China will surely target your demographic—what will you do, Mr. President? Blaming it on Obama won’t be a viable option.
You blowtorched our G7 allies because they refused to wipe the manure off your boots that you wore to the summit. So you now imperil the Obama economy with higher prices and higher unemployment to make what point? When the job figures come out for the rest of the year, look for worsening statistics.
But I suspect the real reason for this tweet tantrum is that China must have nixed a proposal for a Trump Tower in downtown Beijing. Or they threatened their own tariffs on Ivanka’s shoe line. Right?
581
“…When the job figures come out for the rest of the year, look for worsening statistics…”
From May 2017 to March 2018 the “Civilian labor force” grew an average of 203,000 per month.
From March 2018 to May 2018 the “Civilian labor force” dropped from 161,763 to 161,539, a drop of 224,000, or an average of 112,000 per month.
From March 2018 to May 2018 the “Employed” grew from 155,178 to 155,474, an increase of 296,000, or an average of 148,000 per month.
Accordingly, From March 2018 to May 2018 the “Unemployed” dropped from 6,585 to 6,065, a drop of 520,000, or an average of 260,000 per month.
The “Unemployment rate” fell from 4.1% (6,585/161,763) to 3.9% (6,065/161,539), an average drop of 0.16% per month.
Source:
Employment Situation Summary Table A. Household data, seasonally adjusted
https://www.bls.gov/news.release/empsit.a.htm
Note that 43% of the drop in the “Unemployment rate” is due to the drop in the “Civilian labor force” (112,000/260,000)…
… whereas only 57% of the drop in the “Unemployment rate” is due to the increase in the “Employed” (148,000/260,000).
Assuming the “Unemployment rate” continues to drop at the current rate of 0.16% per month, it will be:
October 2018 = 3.0%
December 2018 = 2.6%
May 2020 = 0.0%
The obvious questions:
Why is the “Civilian labor force” dropping at a rate of 112,000 per month? Should it not be increasing since the “Civilian noninstitutional population” is growing at a rate of 179,000 per month?
Maybe it's dropping because Trump is deporting all the workers.
What is the rate of Boomers retiring now?
A week after he told the G-7 to get rid of all tariffs.
194
Why does America (middle class) have to bankroll the other countries? Why can't they play their fair share?
Notkidding,
You don't get it, as many Americans. All of a sudden it is Trade and nothing else. Last 8 years it were debt and budget deficits and nothing else, now not a peep. Today it is trade deficit, a reason for all bad in US. Simple to believe but it will solve NOTHING. It just sounds good to scream at.
By the way, American middle class is bankrolling American wealthy so they can invest in East Asia and China.
“Beijing has said it would retaliate by imposing its own tariffs on a list of roughly $50 billion in American exports.” - That’s why they call it a trade war Mr. President.
Our enemies and former allies are moving forward by arranging a world order minus the United States. They understand us better than we understand ourselves. They see us as arrogant, hypocritical, and untrustworthy. We fake our Christian beliefs, lecture as if we know it all, and practice human rights selectively. Our endless, financially exorbitant election cycles are the stuff of legend. Our ill-informed president and his climate change denying Republican Party have taken us from a vital nation to one that is on the outside looking in. In the meantime, Europe and Asia will produce all the computers, airplanes, high speed transit, smart phones, windmills, solar panels, and electric cars the world will need. The U.S. will buy it all – on credit.
922
Actually, I believe the USA is moving forward by rearranging our position within the world order to include Russia, Turkey, the Philippine alliance to counter the liberal democratic alliances we established. A Russo-American oligarchic order. Something along this line.
A bleak picture for the most popular comment.
That says a lot about where we are.
I’d ask the other countries of the world to hang on a bit. Trump will fly too close to the sun.
The question is how soon.
10
What may be even worse, as the US weakens in Asia, China may be so emboldened that will try to take over Taiwan by force. Then what are we going to do? Two of our largest export markets at war with each other can only be bad for this country, not to mention treaty obligations that will likely involve the US military.
3
Oh, man, when even the Chamber of Commerce doesn’t agree with Trump you know it’s bad policy.
343
Well, I guess we know who got the president’s ear this morning. How long will it take for these decisions to be reversed, do you think?
70
A couple of hours, or tweets from now.
1
And one of the absurdities is that the ambassador to China is former Governor of Iowa, Terry Branstad. When Branstad was appointed ambassador, the Des Moines Register lauded his special relationship with Chinese President Xi, forged ironically on past Chinese trade missions to Iowa.
Awesome. Internal fights within the administration find their way out in the form of dueling policy declarations. "ZTE is fine, but other products are not, we are negotiating and the trade war is on hold, but then it isn't. We need your help China on NK, but here are some punitive tariffs for your trouble. Oh, and if you retaliate to protect your economy, there will be more tariffs for you. Are you seeing this Canada? You are next."
114
Thanos- trump has solved the NK problem (or so he says) so now he'll go after China. He doesn't needed their help anymore. No tariffs on Trump products of course.
3
Believe me, we know...Canada has been looking hard at options to diversify our economy and our trade for some time; but with greater urgency now, as our biggest trading partner can no longer be relied upon. Holdouts here in BC will be rethinking the Trans-mountain Pipeline. Not a fan of the pipeline, but Canadians can't overlook the fact that we trade in resources, and China wants them.
6
Canada will also invest more in advanced finished goods production. No need to outsource production to China.
For decades it has been Wall Street that has pulled the strings of our politicians to allow the dumping of foreign products into our country decimating manufacturing and Main Street. How can US manufacturing compete against State Controlled business’ or workers making pennies an hour. I like that Trump is addressing this, though his reason is to probably to get a better deal for Ivanka’s products
10
I do too!
Since China is so first world let's see them pay their billions of workers fair wages, and some retirement benefits, profit-sharing. Let's see China lift their poor out of hunger, if they want to call themselves first world.
1
I don't doubt that there are numerous issues to be addressed with China, including appropriation of trade secrets from US companies; requiring US companies to partner with China companies to do business there; etc. However using a blunt instrument rather than a sharp scalpel usually results in more harm to each party.
2
Don't be so quick to judge. Canadians pay close attention to American trade policy -- we really don't have any choice. And as a Canadian I can name off a long list of products which American industries dump or try to dump on our market. All that government-subsidized Wisconsin dairy that Trump keeps going on about is a prime example. And then there's another long list of Canadian products subject to ridiculous tariffs if they try to penetrate American markets -- softwood lumber, for example. And, moving on, a list of Canadian factories that have closed to move to those cheap labour/"right to starve slowly" states that effectively ban trade unions.
So your country's hands aren't exactly clean here. Albeit I agree with you on the Ivanka thing.
7
It is about time! Hope Trump keeps this promise and not backtrack like ZTE. His credibility is at stake if he waffles again. China is taking advantage of the US with impunity, taking for granted the average American's gullibility that assumes the rest of the world plays by fair rules. China is not a "developing country" that needs help from us. It is a first-world nation, and America needs to immediately apply any restrictions that China places on American companies, such as joint ventures and minority stakes in tech companies where they steal American intellectual property wholesale and replicate it at bargain-basement prices because they spent nothing on R&D. I'm a bleeding-heart Democrat and I support Trump on this.
12
His credibility is at stake? If it weren't for his low credibility, he wouldn't have any credibility at all.
1
China is spending more on R&D than ever before.
https://www.google.com/amp/s/www.cnbc.com/amp/2018/02/26/china-spent-an-...
Thank you, Chester.
Yes, Trump isn't always wrong, this time he is right.
A substantial part of the trade deficit, so called, is in reality an intra-US trade. Take for example Apple: their iPhones are assembled in China with products from various countries including maybe US for special parts. It would be interesting to know how much of the import from China is from a US owned or controlled company, to another US corporation in USA. If that import is hit by a substantial tariff we are punishing ourselves.
54
As I understand it, iPhones are made from parts from many countries including the US but are assembled in China. When they are sent back to the US they are counted as incoming goods at full price. Therefore it looks like it is adding to the trade deficit. Trump and his advisers simply don't get things like this, it seems to me.
7
Trade war is component of obsolete economic operation and theory. Third party component purchase can negate any real net bad effect. Please get on the ball The thinking expressed in your pages is sometimes beyond expiration
8
What, and who might this third party you’re talking about, do you mean the public, or allied nations, because I think that won’t happen. No no third party can offset the billions of dollars in tariffs. I won’t just be the Chinese, other nations will levee tariffs. This is all the GOP, every bit of it, they can’t blame anyone but themselves. I’m glad I have a front row seat to watch the spectacular fall.
2
If you mean, that talk of tarrifs should have been dead on arrival, then :-)
3
Everything you wrote is wrong.
4
Why wouldn't China immediately terminate the Ivanka and all of Trump's trademarks and back out of the $500 million investment in their Indonesia real estate project?
463
That would be a brilliant move by China. Not only would they damage the Trump family financially but they would also do so politically and possibly legally by showing that a quid pro quo existed.
8
Watch the economy slowly unravel as the price of goods goes up on everything from soda cans to cars to new home construction, followed by people losing their jobs because of demand slacking off.
51
China and the rest of the world need to place stiff tariffs on every product from a red state. And lift all tariffs on anything from a blue state.
This will quickly solve the Trump problem.
703
How would you go about doing that when, for instance the Boeing Dreamliner is made in liberal Washington (state) as well as South Carolina?
1
Man, that would be something to sit back and watch. I would scream with laughter, I would make sure I went to Trumps Twitter page, and did a Sara Palin, so hows this trade war workin for ya. I’m from Alaska, I worked many years for legislative affairs in the capital building. Sara Palin, was the worst, most unprepared Governor Alaska ever had, and like Wally Hickle, who left office half way through his term as governor, Sara too left for the federal government, only she face planted in spectacular fashion. At least Wally, came back to Alaska after leaving the Nixon administration, and making a comeback in the 1980s. I knew him, and didn’t like him much, like trump he was a blow hard. I think that’s one of the many prerequisite for being a Republican.
4
@Fourteen
While what you say is true, China plays the long game. It is a better long term strategy for China to weaken its largest competitor the US, use the same strategy that Putin is using.
Isolate America, dismantle NATO, alienate longtime allies, start idiotic trade wars, pander to the most gullible segments of the electorate, hollow out the state department, engage in completely idiotic diplomatic dog and pony shows NK, etc.
China in its own best interest, should do what is diametrically opposite to what you recommend. The longer trump is in power, the US is seriously damaged. America is now the world's largest banana republic, untrustworthy, a disgrace, a bad joke, in decline. The US has already ceded the green revolution (Paris accord), and trade dominance in southeast Asia by pulling out of TPP. It won't be long before China gains military dominance there also. My Vietnamese wife watches Vietnamese news: there are huge protests currently there over China's attempt to get 99 year leases for naval bases in Vietnam (kind of what US did to Cuba with Guantanamo). This is what ascending empires have done for centuries.
6
This country is in dire need of more Congressional oversight. America has dominated the playing field for years and years - and now with the growth of China, India, and other economies in Southeast Asia and Africa, the best long-term strategy for Western countries and the world is a framework of cooperation.
My fear is that Trump's pompous "America First" philosophy will soon be used in retaliation by other countries around the world to justify greed and selfish behaviors -- but next time America will be on the losing side.
24
Micah, you're right in your first paragraph.
The other countries already are using "[China, India, and other economies in Southeast Asia and Africa] First" behavior. Furthermore, we are foolish to think they wouldn't and we are foolish to think that they embrace brotherhood the way America does.
We are already on the losing side because of the greed and selfishness of China, India, and other economies in Southeast Asia and Africa. You make think Trump is a barbaric, cheating, vulgar oaf, but he is still not always wrong.
Notkidding,
Instead of staying together with Europe, other countries in East Asia (TPP) and NAFTA (negotiations are stuck on the silly "5-year sunset clause), Trump is fighting alone with the entire world. That doesn't bode well for the outcome.
Trumps family will already hedges the stocks of the affected companies. This is the most corrupt president in the history of our nation.
133
For this Guy (I no longer call him "President" or "POTUS" or "Trump" - THE GUY is good enough) the only seeds he knows how to sow are the seeds of discord and conflict. The fire of Anger and Resentment must always be maintained. To have such a need for permanent conflict, he must have lacked a lot of attention from his father as a young child. Cannot heal anymore.
118
"To have such a need for permanent conflict, he must have lacked a lot of attention from his father as a young child."
I think his actual childhood problem was that the only person around him who he had to answer to, ever, in his entire life, was his father. Everybody else was paid to toady to his every whim. And the habit he learned from this is "If somebody doesn't immediately jump to do what you say, threaten them or bully them until they do it." That's been the strategy he's used throughout his entire miserable existence, why would he stop now?
I in some ways can feel sorry for him though: He's a man who has never been genuinely loved. Ever.
5
Anger, resentment, zenophobia, and class-warfare keep Trump's base fervent. His farmer supporters in Iowa already see themselves as willing sacrificial foot soldiers in the war against the evil Chinese trade abusers. (or that was the import of an interview with a pork producer that I heard).
Will this affect the Trump Family businesses or will they be exempt?
Please vote in November!!
198
What would be interesting to know is how Trump and his cronies are using their insider information to invest, including on the agricultural futures markets.
Another dumb and dumber by the idiot-in-chief. Does anyone think that this is not going to cost Americans more for American products totally made or partially made in China?
I'm sure that all the American clothing manufacturers, American product manufacturers, and Apple and a whole host of other American companies are going to sit on their hands and do nothing!
127
The disrupter-in-chief has the trade war he promised his supporters. That farmers in the Mid-West will be hurt by China's retaliation means nothing to the president. His scorched earth presidency is hurtling along at an alarming rate. America, once admired and envied by the global community is now a hermit, incapable of reaching out or cooperating with foreign countries.
548
Yes. Trump’s remaking America, our country, in his own image.
1
Last week I heard an interview with an Iowa pork producer at the World Pork Expo in Des Moines. He said that producers, like him, were going to have to sacrifice, but that it was necessary to stop Chinese trade abuse. You have to wonder how his bankers will feel about that excuse if he can't pay his loans because of low pork prices. If this producer is representative, Trump's rural supporters are still supporting him against their self interests.
Every 'war' has casualties. This trade war; specifically with China will result in multiple layers of casualties in the U.S. From source producers (i.e. farmers, manufacturers) to consumers, to Wall Street; Americans are going to pay an economic price that Mr. Trump apparently finds acceptable. Will his supporters and critics believe these casualties are acceptable? The mid-terms may go a very long way in answering that question.
243
China has tremendous economic power over America.
China has over a $trillion in American bonds,
and if they want to cash this in - America would go bankrupt.
China owns one third of the stock market, and they
could bring down the American economy if they wanted.
1
And, just like GWB's war, those casualties will not be incurred by the people who started it.
U.S. wages are stagnant, especially at the lower end of the scale. The reason is simple.
Large corporations have introduced extreme wage competition for U.S. workers by offshoring production to low-wage countries like China and enabling the influx of low-wage immigrants to the U.S.
We can have higher U.S. wages or free trade with China, but we cannot have both.
178
Well, you'd better read Robert Feenstra's latest paper.
Those of the low skilled workers will surely suffer a loss in global value chain trade.
Who knows what we might have if we curb the American appetite for the junk they but at the dollar-type stores and elsewhere. They also might have more money in their wallet for that rainy day. generally Americans don't seem to be terribly sophisticated about financial things. Already their credit card debt is more than it was BEFORE 2008.
3
Higher wages,yes. But higher prices so no gain.
Here in the Midwest, commodity prices continue to fall due in large part to the high probability of retaliation on the part of China, Canada and the European Union to the misguided trade policy of the Trump administration.
The trade wars look as if they are now actually starting with no real winners anywhere. Trump seems to be picking a fight with almost everyone except Russian and North Korea.
Given Trump's contempt for Trudeau and Canadian trade policy, maybe he will be requesting funds in the immigration bill to start a second wall on the northern border.
469
Re: Trump requesting funds for a second wall on the northern border
We can only hope!
2
Gee, you'd think Trump would claim Canada would have to pay for the wall. ;o)
For NK it is just a question of time before Trump renegades what he has agreed with Kim.. mark my word, the circus will continue!
From a Canadian perspective, I hope that China's retaliatory tariffs really, really hurt the US. Those measures, combined with what is coming from Canada, what Mexico has already done, and what the EU plans to do will, hopefully, send the message to Americans that they cannot attack and hurt the rest of the planet without paying a price. What is particularly galling is the White House's insistence that it will impose even more tariffs and restrictions on other countries if they dare to retaliate. Trump is literally telling the rest of the world that he can slap us all in the collective face and we are expected to sit there and take it. The US effort to stall China's move into higher tech industries is a particularly blatant effort by the Americans to stall China's rise. But if the Americans are making it more expensive for Americans to buy China's high tech goods, it seems that hurts the US far more than it does China. China will continue to sell to the rest of the world and build its markets elsewhere; American companies, faced with retaliation and boycotts from other states will only fall further and further behind in the technologies of the future.
712
The US should raise its tariffs to be more in line with at least Canada’s (that would mean increasing only by 2-3%). Otherwise it further favors our move from a goods-based economy to a service mono economy. I think Canada can certainly protect its dairy farmers, but I also feel that it is not wrong for the US to tweak its own tariffs a bit further as well. The tone could certainly be more diplomatic, but Obama’s tone didn’t get this accomplished. Just some thought. That said, I hope our more brutish form of Stephen Harper is gone in 2 years.
3
We just need to ignore KFC,Big Mac, B. King Starbucks , Coca nd Pepsi for three months and Trump's hair will beon fire. That is tariffs that hurts!
I agree with your comments however refer to Trump doing this not Americans. Most Americans loathe Trump and are repulsed by his actions in office.
1
Trump, and by extension, the U.S. can not win a trade war with China, the E.U., Canada, and Mexico. Granted, these countries will probably suffer in the short term, but to what end. Eventually, they all will find other avenues of trade that will hurt the American workers who depend on fair and open-market rules. What's to prevent China from opening vast areas of land to grow the crops they currently import from the U.S.? They certainly have the financial means and human labor to make it happen. Trump and the compliant G.O.P. have overplayed their hand, meaning the American worker has again gotten the short end of the stick.
309
China doesn't even need to expand it's agricultural land use. Other countries like Canada, Argentina and Australia, among others, are already moving to grab the lost market share. Good news for them, at least.
1
LennyN, while I agree with you in principle that American workers will be hurt by a roll-back of trade that is fair and relies on open-market rules, I still have to echo Noam Chomsky and say that the open-market rules are not open to labor. The entire problem of illegal immigration is about US employers advertising that immigrants can get jobs in the US without the papers that would put them in the country "legally." Capital is free to slosh across the borders, investors are protected by these so-called free-trade agreements, but labor cannot cross the borders with the same openness as capital, and the environments of signatory countries are not protected with the same care as are investors.
https://truthout.org/articles/trump-in-the-white-house-an-interview-with...
Oh, and China doesn't have much arable land that is not under cultivation. China's problem there is that most of the land is in small family-held plots that are not amenable to the economies of scale and low labor force participation that we associate with US agriculture, which is highly mechanized in comparison.
1
We have a madman who deals with mad men and who is listening to people who keep tellin g him he won't be hurt--he cares not a fig for the US-he wants to make the Koreans rich by building hotels and selling their rich property and thinks her will get a shiny Peace Prize-like the one Obama didn't deserve, either.
We keep putting inexperienced weirdoes in office and let the congress run itself into the dirt and appoint genius' lawyers from the 17th century to the bench.
We don't have government in the US-just a sort of WWW show pretending to play at it.
I don't know if the media realize it as long as the checks don't bounce. . .
He made a promise to get tough on trade with China. He delivered on his promise.
50
Yeah well, how's that working for ya? Did you see what soybeans did today on the stock market. The Chinese have an out-loud spoken goal of raising 6 million of their people up to the middle class. There's a reason for that idea. They'll be great consumers. There are so many Chinese citizens waiting in the wings to start buying stuff. They don't need us. And, our country is about to lose 1000's of job to automation. Imagine every truck driver in the country being out of work. It was estimated yesterday that there is no way anywhere in the US that a full-time minumum wage worker at Walmart, Target etc. can pay rent on a 2 bedroom apartment. We are very quickly becoming a country of poor people with few skills. Meanwhile the Chinese....oh wait I already pointed out the obvious. And, just wait until the next financial crisis, student loan debt hits the US economy and it will then there will be an entire generation of people who cannot be consumers. The Chinese are laughing all the way to the bank. This country NEVER talks about raising the middle class up. Trump's an idiot and a blow hard. I knew better and didn't vote for the imbecile. But man there are a lot of poor suckers out there who did and they are going to be in much worse shape than when Trump took office very soon. That is a pity.
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But a trade war is still a terrible idea in which everyone stands to lose.
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So it matters only to you that he "kept a promise," even if it hurts your fellow Americans -- and you?
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Wake up America...
Future "Customers" of American made Products = 330 Million
Future "Customers" of Chinese made Products = 5.100 Million
(1.300 Million China, 1.300 Million India, and 500 Million Europa) plus the rest of the world.
DO THE MATH!
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Brox: I believe you mean billion. That was precisely the “ math” done by American Corporations as they off shored our jobs, they felt they didn’t need the American consumer anymore, the point everyone is missing is that once the Chinese have our technology they don’t need the American companies EITHER any more. The Real Result of throwing American workers under a bus for short term profits will be that Americans don’t have jobs to afford even the junk from Asia and the American companies will fold as well when the Chinese no longer need them. This has been going on for along time. A perfect example being when a Chinese businessman approached my significant other who was the sales rep for Johnson Hosiery Mills (an American Co. in Business employing Americans for over a hundred years) he said he wanted to buy several sets of samples to send to his stores around the world, foolishly they believed him, he took the samples back to his factory in China and shortly thereafter was offering them to Nordstrom at half the cost of production in South Carolina, needless to say the multi year relationship with Nordstrom ended and a couple of years later Johnson Hosiery was out of business. I know many don’t care about a sock company but it’s analougous to what the Chinese are doing to tech and all businesses, they will not allow American Companies to do business in China unless they surrender their trade secrets. There needs to be much more than a trade war. Wake up!!!
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I'm assuming you meant 5.1 billion for China, and you're absolutely right. There was a time when a lot of countries couldn't help but get some of the more technologically advanced goods from the US because we were the only ones making them. That's clearly no longer the case given the major tech advancements China has made. Furthermore, given China's softer more cooperative approach to trade and our increasingly hostile approach to pretty much everything, countries are going to be much more inclined to work out new trade agreements with China. Trump is approaching trade with a seriously antiquated view of this nations strength and it's going to be to the detriment of everyone. We're damaging relationships and squandering all the good will built up during the Obama administration. Entire communities revolve around some of the goods that are going to have massive tariffs slapped on them. They are not going to survive. Once certain sectors start collapsing and consumer purchasing power drops, more and more industries are going to be hurt by a lack of consumers causing a downward spiral. I'm seriously worried about the future for communities centered around manufacturing and tourism.
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Trump is on a loser on this - and imposing difficulties on the American population.
For every action there is an equal and opposite reaction.
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Hitler and the Nazis used conflict as a policy orientation - constant conflict was a tactic to keep their supporters emotionally engaged and expressing hate and feeling fear.
Trump and his cronies are using the same tactic.
Trade wars is just another tactic to keep conflict on the minds of the base, and keep them emotionally involved in hate and feeling fear.
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China is an intellectual property rights thief. Take a look at their warplanes - they are carbon copies of America's warplanes. I participated in the investigation and successful prosecution of an engineer who worked on the stealth properties of the B-2 bomber who was actively selling the technology to the China military. They hack our defense contractors and steal secrets. But tariffs? Tariffs won't hurt China, they will hurt Americans who want products that US no longer manufactures because corporations would rather pay their execs millions and their workers nothing!
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So what is new here? Our Industrial Revolution beginning in the 1860's was based on 'stolen' British Technology, and developing nations have been like thieves ever sense; Japan, South Korea. Taiwan, et. al.
Now China has important advantages, particularly over other developing countries. First, its system of higher education is improving quickly and in ways that may help make the transition to a world of sharply expanded automation and artificial intelligence. According to annual rankings published by U.S. News & World Report in 2017, China is now home to four of the world’s top ten engineering schools. (The United States also has four.) Each year, China now graduates four times as many students as the United States (1.3 million vs. 300,000) in the subjects of math, science, engineering, and technology.
When America was young, our country stole intellectual property from other countries. Have you heard of Samuel Slater. He was a national hero for memorizing cotton manufacturing machinery and building, from memory, the machinery he had seen in England.
As a boy I remember reading Slater’s Mill: the story of a plucky, young hero who emigrated from bad, old England to fresh, new America with the design of a textile mill in his head. He is celebrated as the father of the American Indistrial Revolution, not denounced as a thief of intellectual property. Ah, perspective.
Trump’s declaration of war on all trade fronts cannot do America any good. It lacks the raw resources or the foreign made components to win a concerted victory. He is working on the premise that the world needs to trade with America, but that is not the case. America represents a convenient trading partner for other countries because of its market share and voracious consumerism. However, with impenetrable trade barriers in place, nations will trade elsewhere. It will be a painful conflict of attrition that will batter America and its erstwhile friendly trading partners.
Trump has been exploiting job growth numbers as a reflection of his own nebulous policies when, in fact, they’re mainly part of Obama’s legacy. This war will reverse those numbers just as the Fed seeks to increase interest rates. Many areas of society, except the very rich, will suffer badly.
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The question for trump is never whether something will do America any good; it's whether it will do trump any good.
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A trade war certainly is not a good thing, but I'm not sure our voracious consumerism is a good thing either. In fact, maybe it's our real enemy.
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So Marcus, you apparently believe that we should stay quiet and pay these tariffs, even those charged by Canada? No, my friend from the north. Our time of being the dumb guys that pay your tariffs is about to be expired. Oh, and as far was job growth, Obama had nothing to do with it. Regulations put in place by Obama caused the slowdown of our economy and the increase in unemployment. Trump, from day one has made it a crusade to rid us of these restrictions and the reward has been booming growth of our economy and the lowest unemployment in over forty years.
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TrumpWorld is in for a profoundly painful lesson in basic economics. We all are.
America shops at Walmart. It's the only store it can afford. While former giants like Sears and suburban malls become ghost towns, the aisles at Walmart are near impassible with shoppers. Why?-- only at Walmart can a struggling family find $9.99 jeans for a teenage son, discount food for the table, a $29 graduation dress for daughter, a $54 birthday bike for the 8 year old, and a cheap, but impressively large TV screen to keep up with Fox News. Everything under one roof, and virtually none of it labelled “Made in America”.
When DT's trade wars and the financial realignment of China, Canada, Mexico, and the EU cut the American heartland down to size, those affordable Walmart prices will disappear like the market for Iowa corn, and these increasingly desperate families will feel it first -- Junior will go without, sister gets no new dress for the prom, birthday presents become $5 gift certificates, and the money for a new TV will have to be pulled from the food budget.
The disappointing reality is that Trump and his enablers will escape the blame for this coming upheaval. It will not cause his faithful near half of America to finally understand who their real enemy is. It will get ugly and even violent in its rage and need for revenge on “liberals, the coastal elite, Democrats, and of course, Obama and Hillary”.
We are headed for certain disaster; economic and social disaster.
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Much truth in what you say here. It just may be impossible to go back to the old days when production took place in America.
I don't think anyone has all the answers. We do know we can't compete with low cost nations. Local merchants cannot compete with Amazon. Does that mean continue to forge ahead while we turn ourselves into a 3rd world nation? The middle class is disappearing most of us can agree with.
I think to fix the problem, assuming it can be fixed, would take many years and involve much pain. Should we swallow a bitter pill here and try to rebuild American manufacturing?
There's no easy way to get out of this predicament. I for one am sick of seeing Chinese junk everywhere, and only because of price. I think American citizens will get hurt no matter what course of action we take.
Personally, I have no issue with Chinese junk disappearing and hopefully American manufacturers getting back into the game again. Yes, this will hurt many people. But do we really believe we're not already hurting many people under the current system?
I'm certainly not an economist but I can't say those that are are doing a good job given the devastation that has occurred in the middle class. If America wishes to maintain a solid middle class and not bring the standard of living down my guess is we will not be able to compete with all these low cost nations.
In our desire to consume, consume and consume some more "cheap stuff" we just may be committing financial suicide.
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Reply to Dan Fannon-
The real reason these “struggling American families” are struggling is because our manufacturing middle class has been decimated by bad trade deals.
well, this circumstances made most of American buy more new trendy products than anyone else in other countries. regardless of this policy's direction, hope we can go back to 80s. i just want everyone to be happy with less new items.
As an owner of 5 vineyards & a winery in Chile, with China far and away the largest market for our wines, I should be applauding the idiotic moves by our nincompoop-in-chief which have provoked reciprocal tariffs by China on American wine.
On the contrary I am not, indeed I am very sad. We already are working our winery at full capacity 24 hours a day & don’t need any more demand. But I am an American & I seemingly care a lot more about our country than the nincompoop, who so mechanically shouts “America First” without the remotest understanding of how the international commerce world works.
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Trump and his GOP Congressional minions are handing the Dems a ready-built economic campaign issue with tariffs leading directly to decreased farm prices for exports and increased prices for consumer goods imported from China, Canada, Mexico and the EU.
Add in the current GOP efforts to dismantle the ACA and their published plans to cut back on social safety net spending (SSI, Medicare, Medicaid, SNAP, et al) to "pay for" the recent $2 Trillion corporate tax cut, and the Dems are being handed the economic issues to take back Congress in the 2018 mid-term elections.
Now lets see if the DNC can snatch defeat from the jaws of victory once again.
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Sadly, I think the Dems’s are all too likely to snatch defeat from the jaws of victory. I align with the Dems on most issues. But they are weak and the Republicans are strong. They just are. And I don’t see them getting any stronger anytime soon.
Too bad wed didn't line up our allies to form a common front against China, probably could have accomplished a lot. Instead Trump has alienated our allies, may, in fact, have started trade wars with them.
Can we beat the whole world? Highly doubtful. But for now the Republican base is thrilled, "We'll show them!" they cry. Later on there'll be some real crying.
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I believe that was the TPP which Trump pulled out of. He doesn't believe in multilateral agreements because it requires cooperation, something he just can't and won't do. He thinks he can control and "win" bilateral negotiations. He's finding out other countries can be just as "tough" as he thinks he is.
Jack the ones "crying" will be the Chinese when we cut back on their theft of intellectual properties. China's largest (by far) customer is the US. We purchase more than all of the other countries combined. It would have been nice to have the "whole world" helping us but, they are too busy charging us their own tariffs. You know the old saying "don't kick the bear". Well that's the US and Trump is right to go after these countries to stop IT theft and stop them from charging the "bear" these tariffs. Too bad past presidents didn't take up this fight - Democratic and Republican. Trump is proving to be a worthy adversary!
My feelings are mixed about the Chinese systems. A democratic China like in Russia would cause civil war and destabilise the world order as we know it.
On the other hand they are a truly negative force copying literally everything seemingly unable to invent anything genuine on their own. Silently conquering the African and Latin American continents offering state subsidised infrastructure in exchange for natural resources re-establishing colonial dependencies.
Here in London business circles ethics, principles and long term perspective takes the back seat. No one wants to miss the train and anything to do with China gets red carpet treatment. The Chinese New Year is by far the biggest business event in the calendar.
So far Mr Trumps presidency has been a real life illustration of what happens, when a blindfolded man is chasing flies with a hammer in a porcelain store. With China though I feel he has finally hit something i.e this is the first time anyone has thrown a spanner in their wheels and stood up for fair play and enduring business principles
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London is keen on business with China because after BREXIT it will need any business it gets. It's a self-inflicted wound.
Not many things I agree on with Trump, but he is absolutely right to go after China for their intellectual theft and and unfair trade practices.
As anyone who has tried to do business in China will attest, they are ruthlessly dishonest.
I still believe a much smarter approach would have been to match Chinese tariffs, ownership, and local content regulations one for one. Would be hard to argue against the fact that we are just matching what you are doing to us.
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Agreed. Finally, America is responding to the Chinese approach (albeit with a sledgehammer) but I fail to understand why Trump has it in for Canada, Mexico and Europe.
You are missing the bigger picture. As usual Trump is wrong on this. China is no more ruthless than America. Apple and Microsoft built Their Kingdoms on intellectual theft. They were rewarded with tax cuts and cheap foreign labor.
While there are many, many areas of disagreement between the two major parties, free trade is an area of common ground. Trade wars are lose-lose endeavors. This is not smart. This is not strategic. This will do harm. So trumpian. So wrong.
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