My hunch is that Trump is trying to wreck the economy in anticipation of a blue wave in November, at which point he will blame the democratic majority for the recession he is certain to create.
7
I find it interesting how China is starting to make trade concessions for the first time ever.
The United States has had a $300 billion + trade deficit with China for many years, pre-dating Trump obviously. They gutted our manufacturing industry, steal intellectual property rights etc.
Why are liberals defending this? Biggest "fake news" of the year has been coverage of this topic. The U.S has been at war with China on trade for years, we should haven't ever fought back.
Even Senator Schumer agrees with the President on pushing back against Chinese aggression. Would be nice to see Democrats support an America First trade policy for a change.
4
President trump did not start the trade war, China did. The previous administrations were too coward to fight back.
China has violated WTO rules over and over again since its admission in 2001. From stealing US technologies by coercing foreign companies into joint ventures with Chinese companies, to subsidizing entire industries.
Chinese companies went on a buying spree the last decade thanks to Beijing backing, how is that fair?
This trade deficit only profits the Bankers, the Elite and companies raking $billions in profits that they stack in offshore countries.
Selling cheap goods at Walmart after delocalizing to China is not helping most Americans.
I don't personally like Mr. Trump but that would not stop me for supporting him when he makes the right decision for America.
Hit back hard at China, Mr.Trump. Finally, we have a President who is willing to stand up to China.
1
Thank god 'trade wars are easy to win,' or else a lot of people throughout the world would be hurt.
But with Donald J Trump at the helm of this ship, what could go wrong?
1
Wouldn't it be a great idea to form an alliance with all of China's major trading partners to form our OWN free trade association and exclude China from that ?? It would be an effective way of opposing the excesses and semi-illegal copyright and other practices used by China.
Oh, wait there, that was/is the Trans-Pacific Partnership (TPP) which was signed by 12 nations (including, Canada, Japan, Australia, Malaysia, Mexico, Vietnam, Chile, New Zealand and the US) ... only for the US to withdraw because the President of the US is a petulant idiot ...
15
Yep ! No allies, alone throwing rocks to the Sleeping Dragon ...
4
Victory!!!
First Dear Leader Don destroyed all of North Korea's nuclear weapons components with a comprehensive memo.
Herr Trump has created bilateral trade agreements with our allies in Asia, Europe and most importantly, our Mexican and Canadian opponents.
Steel and coal are mighty mighty engines of the Trump Boom.
And now......
Victory!!!
Victory in the trade war with China.
Time for a massive military celebratory parade.
Perhaps there is a film maker he might want to film the event:
"The Triumph of Trump"
Victory!!!
3
Ridiculous. A ten year old would have more common sense and logic about how utterly nonsensical a trade war is for both parties.
4
REALITY :
https://www.wsj.com/articles/u-s-economic-strength-gives-trump-leeway-in...
Winning a trade war has consequences. That would be the Trump base (sorry you ARE EXPENDABLE). Suck it up because the President would rather win the war than save the people. Ok, it costs a lot of jobs and leaves farmers flat but he gets to win! He said there would be winning all the time. That would be for him - not anyone else.
5
Trump's trade war with China is just another word for containing China by another means.
If Trump dare, he will go into a hot war with China already by now. But of course he chickened out as China can destroy US too, so his next option as advised by neocons around him is a trade war with China.
The collateral damage are all the Americans. Say goodbye to cheap imports from China. There will be no easy substitutes as China have the economy of scale others don't have as much.
In other words, Americans cost of living will rise and many will sink into deeper poverty.
1
The United States owes China $1.18 trillion as of this last spring 2018. I wonder how advisable it is to start a trade war with the Country to which we owe so much money. After all, if swatting at each other with "I'll tariff you this" and "I'll tariff you back" gets to be too annoying for China, it could just demand that the USA pay our debt to China immediately. $1.18 Trillion. Then where would we be?
3
What Trump don't realise is China can do the slow burn to outlast him. China will time the release of the T Bills to maximize damage to US by forcing 10 years T Bills yield to rise.
Plus of course with the slowing economy globally from the trade war, there will be less means for creditor nations to buy US T Bills and this will force yield to go higher as well.
Soon, it is the higher 10 years T Bill yield that will choke US economy, on top of the deceleration from the trade war.
3
Having fixed the health care system, brought peace to the Middle East, denuclearized North Korea and freed us from a host of burdensome ecological safeguards, there's no reason to think Trump can't rescue the economy.
13
The Hawk:
the economy was not built in a day, and the economic consequences of tariffs will not be apparent in one day's time.
History (for example the Smoot-Hawley Tariffs of 1930) teaches that tariffs generally do not help the economy.
https://en.wikipedia.org/wiki/Smoot%E2%80%93Hawley_Tariff_Act
But you know better. Got it.
3
This must be tongue in cheek comment.
Steven DN:
I think you forgot "cured cancer."
4
I am grateful to Trump for one thing. He is putting to test the myth that left-wing policies such as trade barriers harm the US economy and he is winning the argument. At his announcement of tariffs, the Dow moved up and the overall economy has not been hit at all by his anti-free trade moves. Every left wing liberal should be observing what is going on now with a keen eye. Next time the economists present their fictional arguments against left-wing policies, you know how to react. The evidence is clear: they do nothing to harm the economy that instead follows global largely random cycles.
1
Surely you are not that foolish. The ripple effects are not felt immediately. It takes time to work its way through the system. This is like saying that poison doesn’t kill you because you’re still alive when you drink it.
The market has shrugged this off because Trump spouts off a lot of things.
15
Actually the markets are pretty much totally disconnected from the actual economy. Utterly amazing that most people do not realize this.
Companies and people who consume goods will judge for themselves if the tariffed items need to be purchased or if those items can be purchased elsewhere or the need deferred.
8
Wait for it...
2
Obviously Trump believes in the beauty of maximum pressure. He deludes himself into thinking that he got his summit meeting with Kim Jong-un thanks to sanctions and fire-and-fury rhetoric.
During the campaign Trump accused China of unfair practices many times and vowed to get the trade balance right. During his first year in office there seemed to be more tough talk than action. Now the endless threat of tariffs have become a reality, and he is applying his maximum pressure formula on China. Trump is playing an economic game of chicken. As a narcissist and being out of touch with reality, he is unlikely to blink first, even if it will ultimately hurt America’s economy.
11
Your analysis is utterly devoid of any insightful or witty discourse.
But don't give up your day job as an unknown blog pundit just because of my opinion.
American companies sold their soul by handing over technology so that they can make a buck in the short term. Just like stock markets are short sighted, can see only six months ahead, the corporations also see only six months ahead. America lost huge advantage in technology because of short sightedness and the damage is permanent. It is not Obama doing. It is Nixon and Kissinger dual act. I hope Trump can fight this one to the logical end, namely open the Chinese markets without any conditions.
1
See that's the problem. Many people have zero clue of how the WTO works. When measured by GDP per capita - China is not fully developed so it can have restrictions on parts of it's market and require tech transfer.
As to why Nixon and Kissinger opened up to China... They wanted to pit China against the Soviet Union. The best laid plans don't always go how you expect. The Chinese learned and are now the biggest market. They are now cordial with Russia again.
2
It is not what China can require, it is US corporations that need not transfer the technology. Read the comment. The idea of pitting China against Russia is not what I call best laid plan.
I thought Capitalism would embrace Laissez-Faire principle in which there is little or no governmental interference and production of goods will gravitate to the lowest cost of labor and materials. Globalization has fulfilled both principles.
US is the richest western country in the world. The standard of living is at least two to three times higher than China. There is an abbreviation in China 996 refer to workers working 9 to 9, 6 days a week. With the low cost of labor, the goods and products are being stocked and sold in many US companies.
With the apparent rise of China and the US concerns that China may surpass them in near future. Instead of using their greatest assess which are open policy, education, creativity and innovation to compete, they resort to trade tariff, protectionism and isolation. In initial negotiation, US demands China to increase $100 billions spending on US goods and curtail China policy 2025 (to be self sufficient in particular in technology front). How can you blame China to be self sufficient and independent ? I am not saying there is no legitimate issues regarding China trade practices, is this part of trade negotiating process ?
There is no question China will bear more pain now. It is interesting to note that Great Britain invented the steam engine train more than a century ago,now China is building a high speed rail in south western part of England. So, in the long run with the tariff war escalates, which country will come out ahead ?
5
US has been in a Trade war ever since we got rid of slavery and haven't taxed foreign goods of the countries/companies that pay slave labor wages to make ours competitive. Same goes for the environmental standards.
1
Based on Trump's actions, it really does seem like he's working for Putin to weaken the United States.
Next week he'll be working on destroying the NATO alliance before he has his performance review with the boss on the 16th.
13
Little did Trump realise his trade war with China will hasten an impeachment against him. Political fallout will have many Republicans align with Democrats to give them sufficient votes to impeach Trump.
4
Highly unlikely that he would be removed from office as there would need to be 67 Senators vote for Conviction.
China and Europe have to react for sure, from Trump's side there was a war declaration after all. Everybody now knows how this war started but nobody knows how it will end. For the moment the retaliations are targeting the Trump's bases in a intelligent way, but U.S. cannot even clearly identify specific objects without self-harm. Europe is a highly intertwined economy and China is developing a much more sophisticated industry and finances which becomes a rather moving target.
4
The tariffs on imports are nothing more than a tax on American consumers. The tariff money, paid by the importing company, goes straight into the US treasury just like the rest of the federal taxes we pay. The cost shows up as increased consumer prices.
I was wondering how the republicans were planning on paying for their tax cuts for the rich. Now we know; a consumption tax on the American people.
13
He's got to do something to balance the budget after those ill advised tax cuts. Sticking it to his supporters through higher consumer prices seems consistent with his art of the deal.
1
Trump is an idiot. He was given a robust economy and he'll screw it up with a trade war.
Where is congress?
8
And the trade buffoonery begins.
8
China must be confronted but this is the absolute worst way to do it. Trump should of worked with our allies to put pressure on China to have a fair market. However, he chose to start a fight with everyone all at once. Since he's the one instigating it China can point to Trump and blame him. Trump is starting from the weakest position imaginable. He has the lowest approval rating, he has no allies on his side, and he has no long term plan. I don't think it'll be hard for China to hold out till Trump caves. This is so poorly executed. His supporters will give him a gold star for effort but what matters is that it works. This can have long term consequences for demand of U.S. products. Other countries will find alternatives and when this is over there is no guarantee they'll come back to buy American products.
4
What is this "fair market"? American companies exploited the cheap labor in China. Now China can hold it's own - but because its GDP per capita is not on first world levels - it is allowed concessions the US and EU don't get from the WTO. Blame the rule makers... The rule-makers were the US and Europe. Trump even said it himself. The funniest thing is US companies make more money in China than the reverse. Can you name one Chinese company you own a brand of? The goods you have that are "made in China" are US brands. Chinese brands mainly sell in Asia.
1
Remember, when President Clinton left office?! And George W. Bush took over?! The United States has a budget SURPLUS!!! Our economy was humming along!
Now, it's deja vu! Another Democrat, President Obama, rescues our nation from the Bush Recession and......another Republican is elected!!!
America, you keep doing the same thing over and over....it's wrong! Wake up! Republicans may lower taxes for the 1%, but they damage the economy every time!
Remember, Reagan? H.W. Bush? The economy was in a deep recession!
Now we have the Trump Recession! Thanks a lot!
Vote!
10
Whatever happens, I would not expect Trump supporters to change their mind about Trump. We live in the era of alternative facts, and nonsensical logic. By the time any fallout hits Trumpland, he will just tweet that layoffs are due to "Democrat obstruction" or "illegals."
3
PS. Yesterday China announce cancellations of its soy beans orders!
Hey, American farmers, y'all voted for Donald ! How's that trade war, working for you?!
8
The emperor has no clothes.
5
Trump's trade war with China will immediately cause the N Korea denuclearization to fail. Kim have very little incentive to give up his nukes as China will protect him. He will give up very little and string Trump out till he leave office.
US Homeland will be less safe as a result of Trump's trade war with China.
2
The KN denuclearization was never anything but a Trump photo op. the Feds have already verified that Kim is building a new cite.
2
The tariffs are like a shiny new toy for Trump, something to play with until he gets bored like everything else in his life and then he moves on leaving taxpayers to suffer the consequences. He plans to have taxpayers bail the farmers out when the tariffs mess up the markets even though they already receive taxpayer farm subsidies. Welfare for some, cut food for others.
9
American caught in the trade war with China only have to look at their smartphone and laptops.
Trump and his advisers like Peter Navarro fear China develop the chips like those in your consumer products that have dual use and put them on her fighter jets, submarines, missiles. This is the real reason for starting a trade war with China in Trump's attempt to delay China's rise.
1
China already has it's own chips for jet/submarines/missiles.... It doesn't much for the consumer market... But that is changing (such as Huawei). In fact - just as with the space station and supercomputers - the ZTE incident has galvanized them to push forward faster. So Navarro's plans will most likely back-fire.
For years now, I've been going out of my way to avoid anything made in China. I find the quality and standards below other countries' products. I would rather pay more for quality than buy cheap junk from China.
1
So that iPhone and MacBook Pro were cheap junk? Yep, those Motorolas were much better and that's why no one's buying Apple stuff made in China.
2
China has been hurting American business for years, and now we're finally showing them that two can play that game. They're not the only ones that can hurt us! No sir! We can hurt hurt us, too! Take that, China! Every time you hit us, we'll hit ourselves even harder! And they think they're so smart! That'll show 'em!
5
This makes no sense. starve china int submitting to what? "OK, wee'll raise the prices on our steel and aluminum so your expensive steel and aluminum are more competitive"?and you don't think tariffs on steel and aluminum will filter down to increasing the cost of just about everything in this country? and if we keep on increasing the tariffs it will even including are food?
we should talk to see if we can bring down the price of there steel and aluminum Instead of imposing tariffs. the "richest country in the world" should use its technological and research prowess ton produce. better, cheaper products to compete in the global economy. but trump only knows playground antics in business:stamp your foot, take your ball and leave. and of course, the game goes on anyways with other players moving in to fill the void left by his childish approach to a very complicated global economy.
1
Mr. Trump has no idea what he is doing. Perhaps it is to kill the most important of President Obama's legacies, the growing economy.
I don't know, but I'm not happy about the trade war. Not at all.
12
Just because a watch is slow, that doesn't mean some idiot can fix it by hitting it with a sledgehammer. China does have some shady trade practices. That doesn't mean Trump's bigly trade war is going to fix everything. Even aside retaliatory tariffs, what do people think will happen when we see the inevitable short-term spike in consumer goods? That'll decrease demand for said goods. What happens to the American trucking jobs to ship those goods? Or warehouse jobs to store or distribute those goods? Or retail jobs? If demand goes down, some of those jobs won't be necessary. People are going to get laid off.
"It's temporary pain" you say? Well, I doubt that, but let's assume it's true. Are you financially secure enough to survive a 12 month layoff? 18 month layoff? Because even if it's just temporary pain, that's the kind of pain we will see.
7
Perhaps corporations should stay out of politics.
A year or so ago, several major corporations joined battle with North Carolina over a law that would require people to use the bathroom corresponding to gender at birth.
Some corporations threatened to keep jobs out of North Carolina to protest the law.
But if corporations can take political positions, perhaps presidents can take positions on individual corporations that would force them into conformity with views he favors.
Tariffs would be a way of doing that.
Tim Cook wants to talk about gay rights across the US. But Trump is the negotiator that determines the level of tariffs and he has many Christian followers who believe that homosexuality is a sin.
Trump can decide, this industry gets heavy tariffs, that one not so much. Suddenly CEO's realize that their political views can have consequences.
It's little steps like this that cause the dissolution of democracy.
Democracy can only thrives when
1. The electorate is sufficiently educated to understand the key issues. How many Americans have read Paul Ehrlich's Population Bomb or the 1972 book Limits to Growth?
2. Corporations stay out of politics. After all, they presumably have employees with varying beliefs.
3. News media are fair and present ALL sides of an argument. People with unpopular beliefs are allowed to express themselves.
4. People don't shut down discussion with constant claims that this or that view is racist or bigoted.
1
Corporations are people too, remember? Corporations make decisions based on what is good for their bottom line. The corporations who threatened to keep jobs out of NC were simply acting on what was best for their business. In this case, there were simply not enough homophobes;transphobes in their market for them to back the NC bathroom bill. Money talks. Apparently, there are more people who are NOT homophobes, or transphobic, who would use the goods and services of those companies, inside and outside of NC, and I think that's a wonderful thing.
8
So he enacts a trillion dollar trade war with no defined outcomes to measure against- sounds just like DJT. Again!
Ready, fire, aim.
Pure, unmitigated incompetence.
I cannot wait to see him back down to Beijing. This weakling in the Oval Office with have to fold to China a some point and it will be there for the entire globe to see.
Again!
DJT is weak.
7
Does the Times not employ one single reporter versed in economics? Can not the editors consult their Nobel Prize winner, Paul Krugman, about how to cover the issue? Because the Times' reporting on Trump's tariffs has been ridiculously superficial.
A tariff is a tax. An American tax, paid by Americans. (If the Chinese "retaliate", by the way, their tariffs will be paid by the Chinese. That's how it works.)
A companion article to this one carries the headline that Chinese consumers are worried by the effects of Chinese tariffs. What about American consumer research? It has a confused lede claiming they're worried about cost increases from Chinese tariffs (reasonable) and by lower exports because of American tariffs. Except American tariffs can't raise Chinese prices.
The Times' reporting consistently describes a fight. It consistently describes the tariffs as being imposed on the Chinese, when in fact they're paid by Americans. It consistently describes our trading partners as "retaliating", without mentioning that said retaliation is against their own people, whom they are taxing in revenge for us taxing ourselves.
This trade war is stupid and pointless. Stupid because it's based on imagined problems. Pointless because it will solve nothing. The real problems in international trade aren't even under discussion.
The Times should cover the imbecility and futility of this so-called policy. Not the fight. Just like the election: it's not a horse race.
12
James, You are exactly right. Most people do not understand that when Trump slaps a tariff on imports it is a consumption tax on Americans who buy the goods. I was wondering how the republicans were planning to pay for their tax cut for the rich. They are going to do it with a consumption tax on imports. Cha ching goes the US Treasury!
2
Krugman HAS written about the tariffs.
What about Javanka's wares?
Exempt?
BTW, where are your tax returns, 45?
12
sHhhh...I'm a busy American on my phone, checking scores, ranting on social media. Who has time for tariffs? Oh, look another Netflix series is coming out!
6
Only trump knows how to engage in a scorched earth policy with everything around him. Failed businesses, payoffs to women, piggish behavior 24 hours a day, racism galore. How long does the GOP put up with this? Until all soybean farmers go bankrupt?
When, when, when will you get some spine and take charge of these tariffs? It is your duty GOP Congress, not the job of the nutcase in the White House. You fools could work with Dems and contain Mr. Crazy.... but you will run off the cliff with the rest of the lemmings instead!
7
The soybean farmers are mad republican heads are going to roll. Count on it.
Canada started its retaliatory tariffs on July 1. It’s a stupid trade war started by Trump that nobody wins. Consumers, farmers and manufacturers in both countries are big losers. When will Trump voters get the message that their so-called leader is doing this because he can? He’s been a bully all his life.
11
I am going to do my part and refuse to buy anything made in the USA, if indeed anything is. Everything I own or covet comes from Asis at fair prices and is the best quality in this World. My cars don't drool in my driveway, cause they are from Asia. America seems caught in a frenzy of hatred, in which I refuse to join.
6
After this Trumpanovsky debacle comes to a finality, I will welcome the old era of do nothing politicians. These years of flirting with nuclear holocaust, a Great Depression, border enforcement out of the Gestapo 101 playbook have taken it’s toll. Russia is defeating the USA without firing a single shot. Yes, this is where we are now.
9
You can fool some of the people some of the time; you can fool the American people all of the time.
10
Trump's pig-headed stupidity is going to generate some real consequences. It's about time!
5
Exactly! Just in time for the Mid-term elections!
2
We progressives need to start a Buy China campaign, to help them out.
Plus, remember who threw the election to Trump in the first place? That's right, a bunch of union, manufacturing laborers in the upper Midwest. Well, now it is payback time!
Buy China. Hurt Trump's supporters in the pocketbook!
4
So far no surprises - this was all signaled long ago and has not caused and will not cause much change beneath the political posturing of different groups about what a big deal it is. The uncertainty is over what happens next. I think there is general agreement that even with a stable genius in charge of one side or the other there is a chance that things could get out of hand and the escalation could lead to real losses on both sides. But it very likely remains possible to get out of this with only a loss of face on one side or the other if both sides don't agree to find a way to declare victory and go on with international trade.
However, China has not alienated the whole rest of the world like Trump has done on behalf of the US. China has choices. China can source their imports from any number of other countries. China can also export to other countries. The US market is saturated anyway. We don't have other choices. We are isolated.
1
Just a little note from Trump country where I am currently visiting: there is nothing but talk about growing manufacturing and tech jobs and economic booms. When I ask the reasonable question: what's going to happen to these jobs that depend on metals when the tariffs take full effect, there is a lot of deflection and dodging. Everything is looking up. Coudn't be better. I get no sense whatsoever that there is any recognition of the larger economic picture and its long term effects. Cost of living in red states is already extremely low since they pay close to no taxes, so I don't know that average wage workers will feel much of the pinch in the short term. In summary: if any rational person expects this trade war to change deep red states' perceptions of Trump in time for the midterms, I can tell you it seems very unlikely.
10
Maybe not where you are. But the Midwest fame belt will suffer! Already China has canceled soy bean orders from the U.S.!
Trump Recession!
3
If there is one thing I agree with President Trump, it's his toughness with China. China has for far long taken advantage of the World. Yes, we will pay a price for it. You can't go to battle not expecting any casualty.
$350/year Billion trade deficit is unheard of in Human history. Why should the U.S just hand over power to China so that some private companies must of which don't even pay taxes in the US can profit?
I rather have a trade war with China than having a military conflict for, since the beginning of time, power is never handed over to a country without a major military conflict. And we know who will be fighting that war against China. Not the people making $millions, but the Poor young Men and Women of our military whose families never took any advantage of trade with China.
Trump is right. Enough already with China taking advantage of the rest of the World.
I wished Trump had enlisted US allies to hit hard on China.
Stay strong Mr. President. You have the support of most Americans.
2
He alienated all our allies, remember?
9
If American companies had shown some Patriotism years ago and kept jobs here we wouldn't have this problem. The CEO's and all saw an opportunity to make their products cheaper and turned their backs on the US. They have NO loyalty to the country or it's citizens that created a stable place to do business.
1
This seems reckless. But there are so many interconnected variables in play that it's impossilbe to know how this shakes out in a month, six months, a year, etc. Maybe it'll force China into fairer trading practices, maybe it'll tank the global economy.
I'd hope that the Trump administration has contingency plans in case the global economy doesn't bend in the direction they're hoping it does. But if they haven't thought out even a primary plan then I'm not too optimistic.
1
What will this mean for dollar stores and other retailers? Will the suppliers shift their manufacturing back home? China has been deluging us with defective goods for years, while eating up our assets and resources. I am all for this trade war and hope it lasts for decades. It gives some hope for restoring our own manufacturing.
1
It resorts manufacturing- that part is true. However the dollar store becomes the 10-dollar store. The price will go up significantly.
2
False News!
You have no idea if the tariff situation will affect your go-to $1 stores.
Who gets the revenue stream from these tariffs? Is this a regressive tax on consumers in disguise? And will the proceeds go to subsidize only friends and family? These aren't rhetorical questions. I would like to know.
4
Eight of the 15 largest/busiest shipping ports by volume in the world are in China.
The other nations on the top 15 ports list include the nations of Singapore, Netherlands, S.Korea, Dubai and Malaysia.
The USA has only 1 port in list of the 20 busiest in world: Los Angeles. We can expect that to fall out of the top 20 with this foolishness of an international trade war instigated by Trump.
6
It's the U.S.A. v. the world in the Trump tariff trade wars! While we're waiting for the "easy win," prices will go up, the stock market will go down, unemployment will go up, and our bank balance will go down. Well, in Trumpworld up is down and down is up; and we all, except you know who,"can't win for losing."
4
Fool! He has shown once again he isn't really a good 21st Century business man. He is stuck in mentality of earlier decades, and since he refuses to read, he isn't keeping up with economics.
There go the values of our 401Ks etc. The loss of value will happen fast.
It will cost more to buy appliances and many other goods. Manufacturers will lose business and cut jobs in USA. Farmers already have lost the soybean and pork markets to Asia.
4
If Trump's goal is to destroy America and make China and Russia Great he is doing a Fantastic job.
7
The Trump/Pence Administration truly has no idea what they are doing.
It is time the business community wakes up and stop giving these incompetents the benefit of the doubt.
7
It is infuriating that yet another American president, elected by a hard right conservative minority of citizens, is making economic havoc around the globe, and so many people will suffer from it. This electoral college nonsense, a compromise made with slave-holding states, is spreading its poison to all nations on earth.
9
Don't worry, as our dear leader said "Trade wars are good and eazy to win" I would right more but I am so exhausted from all this winning I need a nap.
6
“Many international companies route their supply chains through China, and American companies may end up feeling the effects of a trade war more keenly than their Chinese competitors.”
Maybe they’ll return to the US? Could Trump possibly be right about some of this?
4
Markets up sharply.
2
Sure, if “up sharply” means 0.5%, and still not making up for the recent losses. The Dow is where it was at the beginning of the year.
4
You should short the market, then.
I was going to write "unbelievable", but I would be wrong. Of course it is not only believable, it is to be expected. This may be the worst strategic move by a sitting president since Reagan deregulated all the banks in the US (and gave Savings & Loans the ability to basically become the same as a bank. Little to no down payment on home loans, and signature loans, etc. The other thing was when the Republicans made RX in 1985 advertisements legal on TV. Its was Boots Pharmaceuticals (a UK company), who ironically had their main US factory in my birthplace: Shreveport, Louisiana. The FDA rescinded it, but 2 years later in 1987, there were ads for Motrin 400 mg. (that is the same as 2 Advil tablets). Incredibly, they still have RX Motrin which are 600 mg (1 pill more than taking the OTC drub. Remarkably, TV advertisements for cigarettes were still legal then. I remember The Marlboro man. He was the guy on the TV commercial, seen by hundreds of millions of people (if not billions worldwide). He wore a cowboy hat and was sitting on a horse. He died of lung cancer (go figure, huh?). His lung cancer death could be urban legend.
2
The one thing we know that Trump won't have an answer to is the question of "What happens next?" Analyzing potential repercussions of his actions has never been one of his strengths. Separating migrant children from their parents is just one example. Another was his immediate Muslim ban. Barring transgender troops was another. I doubt he would have bellowed falsely that President Obama had Trump Tower wiretapped if he had known it would result in the appointment of Robert Mueller as a Special Counsel.
During the presidential campaign he proclaimed that he had one of the best minds ever. Yet, he has never demonstrated that. Instead, what he has shown is that he has one one the worst guts ever. His gut guides him and it never ceases to get him in trouble.
6
I guess I understand this war about as much as I did the ones we fought in Vietnam and Iraq. No point even discussing Afghanistan then, I suppose.
7
You think your Apple and Android devices are expensive now - you ain't seen nothing yet.
You think those YUGE tv screens will get cheaper - ha, you ain't seen nothing yet.
And, forget about Black Friday, it really will be a blackout.
12
Trump is gambling our future based on his vindictiveness and ego while China is planning its future with a clear strategy and plan.
In the short term Trump may have phyrric wins but long term we need to recognize we are lagging in terms of our infrastructure , our education system , health care, income inequality and an ever increasing debt will prevent us taking effective action on these real problems.
The rest of the Industrialised world will gradually be drawn closer to China and their influence and prosperity will grow as ours wanes.
This is tragic the world needs a strong America true to its values and democratic institutions as leader of the free world.
Is it not ironic as we celebrate this week our freedom from a mad ruler of German ancestry , we find ourselves governed by another mad ruler of German ancestry
14
China seems to be the rising star of the 21st. century. The USA seems about to go nova.
7
There is a long held notion that the US has been victimized by other countries trading practices. The idea is that the US has been foolishly indulgent. China in particular has been practicing predatory trade against the US. Engaging in a trade war well before Trump started this one. That of course does not take into account the world trade system was basically written to the USs advantage after WW2. The US has benefitted from this system of trade and recognized a balance such that US has a capacity to run trade deficits and still maintain a vibrant economy. These trade imbalances are financed by countries such as China that allow the consumer based economy in the US to thrive. Trump argues that the US needs to take a dominant position in which there is no doubt who runs the system.
5
PhoebeS said: "Voters in rural America who are very much responsible for electing this president are going to be between a rock and a hard place. It is their jobs that are most threatened by this trade war..."
LBJ said: “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."
I say: Now substitute 'Trump voter' for "lowest white man", and you have the voters in rural America. They might be threatened, but don't hold your breath that they'll turn on their president.
15
People get the Government they deserve .
5
We did not need Chinas cheap made products anyhow. Good riddance to those crooks. This has been long overdue.
2
You clearly understand as much about Tariffs International Trade as your so-called president, which is to say nothing at all.
4
And they will be replaced by ... what, exactly?
3
You cannot thumb your nose at the 4.5 billion people in China and not suffer some sever consequences.Mr. Trump is leading us into a 1930's depression. We are in for some very rough weather which will be felt by the entire nation unless he can pull a rabbit out of his hat.
7
Did you make up that population number? Yes, you did. The population of China is estimated at 1.415 Billion today.
Remember that the US has the biggest economic footprint.
Spread more of your False news once again.
1
RenegadePriest,
You're correct about the population statistics, but historically, tariffs do not lead to good economic outcomes.
https://www.nytimes.com/2018/03/08/business/tariff-trump-trade-wars.html
1
In Trump's psyche there are only winners and losers. He must attack and degrade the other. There is no space of mutuality. He cannot conceive of an action that would benefit both parties or harm both parties. He also cannot conceive of a process where the end result of his aggression could harm him. His thinking stops after he punches you in the face.
Thus a trade war will only harm China, Canada, Europe, Mexico, etc. Never him (I'd say "never the U.S." but for Trump, like Louis XIV, he is the state). He will win. If America suffers for it, ultimately he will declare himself/U.S. the winner (it doesn't matter what the real results are), and that's all that counts. He will point to a barn still standing as a victory while the house has burnt down.
It's funny, but you never hear that old question about whether Trump will "pivot" as president. That's because we now know him. While what he says is usually false, he can't be somebody he isn't.
5
Whoooaaaaa
Any minute Comrade Trump will reverse some tariffs and
be a FOX NEWS Hero
Making China and Russia Great !!!!!
and in the meanwhile endearing himself to Wisconsin, Ohio, and Pennsylvania folks who don not watch the news regularly or read newspapers much.
3
The tariff tantrum toddler torched TPP .... we have no allies in the Pacific rim to counter Chinese aims. Trump took us off the playing field.
China now builds trade partnerships with our former trading partners who are royally ticked off at us. Advantage to China in their long game.
Trump voters have no clue that our trade agreements and trading patterns were a huge contributor to prosperity, stability and peace.
WHEN will Congress put an end to this narcissistic madness.
17
China has been currency manipulating, barring US controlled companies, stealing Intellectual property, and basically violating all the WTO rules. This has cost the USA millions of jobs, and it is bout time somebody stood up to the Chinese and negotiated a fair trade deal. This article is utter nonsense because it is looking at only the tiny short term changes instead of addressing the whole trade picture. Typical of the Trump haters to lie.
3
"For decades, Western economies like the United States have struggled with the growth of this economic powerhouse." I think the proper caption should have been "For decades, Western economies like the United States have financed the growth of this economic powerhouse for their own profit. Now they're worried about what they've wrought."
4
I realize that opposing tariffs may well fit a lot of peoples definition of a trade war- but this may not necessarily be a full fledged trade war. However, having said that - this has been going on for so many years (China's unfair trade practices) that it's not going to be fixed in a couple of months.
1
Well, farmers, let’s see just how well Trump has your collective back. This is going to hurt you — may I say — bigly?
If nothing else, this should show the stunning narrowness and shallowness of Trump’s loyalty to his base, which most of us realized before Day One. Will he be willing to help out the agricultural industry when the money tightens?
Take note, and vote accordingly.
13
Trump is clueless about trade. If he had a clue he would have let well enough alone. But no, he doesn't know how to build. He is like that TV commercial for insurance that has the guy representing Chaos. Chaos is what Trump does; it's all he knows. He will force the USA to the brink of bankruptcy, just like he has done to every business that he has been in charge of.
The Republican controlled Congress and the Senate are clueless and spineless. If they had a spine and even a small amount of moral code they would put a stop to the chaos. But no, they watch from the sidelines hoping that the chaos will not engulf them before election time.
Trump spouts off complete nonsense at his rallies. His base eat up that nonsense since most do not understand economic policy, health policy, immigration policy, foreign policy or any other government policy. They listen to Trumps nonsense and applaud thinking that he cares about them. News alert - Trump cares about no-one but himself. Fact, not fake news.
There was an order issued by a Judge that told ICE to give back little kids, that they took away, to their parents. If they fail to do that what will be the consequences? Will somebody get a slap on the wrist? Maybe a firm talking-to? Somebody needs to go to jail for a day or two to spur some action. Maybe if the Secretary of DHS were carted off by Federal Marshals after being found in contempt of the Judges order that might get some action going. Probably not.
15
Yes, probably not. It's all the Democrats fault, anyway, haven't you heard?
1
Does Trump watch Fox and Friends on a Chinese made television?
6
Trump plays games where others make plans. He manipulates the people with who he does business and he sees that as having control over what happens. His multiple bankruptcies and thousands of civi suits are a warning. He’s very successful at using people’s emotions to get what he wants from them but he is a careless risk manger, he lets events overtake him often.
1
So much "winning"...
12
This is ALL Trumps fault enabled by his Russpublicans. Don't anyone dare try to blame this on the Democrats.
Vote November 2018.
17
You are right, Larry. This "this" is ALL on Trump. Y'all libbie Democrats are perfectly content with enormous trade deficits, an enormous national debt, corporations parking $Trillions off-shore and various and assorted others economic debacles. Vote November 2018 for higher deficits in all our economic accounts and free health care, free college degrees, free everything because the money tree forest is there for the easy pickings.
We're looking at this all wrong, Trump knows exactly what he's doing, he's not an idiot. What we're seeing here is a deliberate monopolization of our economy. Larger multi-national corporations can use international operations to offset most tariffs. They have the market share to be able to pass along remaining cost to their customers, or can afford to eat any remaining costs. Small companies, farms, etc. that cannot will either go out of business, or be acquired. The desired side effect, worker pay, benefits, health care, and bargaining rights will decrease as they are fewer employers competing in any given industry competing for the same workers. Eventually decreases in pay and cost of labor will more than offset the costs imposed by tariffs. Trumps donors get what they want, and Trump will have a receptive base of newly impoverished working-class voters to exploit.
11
Gad, that's so true. Exactly what happened after Reagan's abandonment of small farms and Obama's bail-out of the major financial firms.
1
This is what happens when a con-artist grifts their way into office: slowly, you see absurd, idiotic, reductive attempts to solve complex problems. We are watching one example. There are consequences to sneering at educated assessments, science, and reading. Anger and
"owning the left" isn't a policy for running the government.
Let's see how much damage will be done before some half-baked attempt is made by the current administration to hold up some token as a "win." This will not end well, and people will lose their jobs; there are infinitely better ways to fix our problems with China--a trade war with the whole world is painfully stupid.
12
The American voters were really given a Faustian choice in the last election with regard to wars. A trade war as promised by Trump, or the real thing in Syria as hinted by Clinton. Having already seen what the disastrous no-fly policy led to in Iraq and her responsibility and gloating of regime change in Libya, I believe most Americans picked Trump over Clinton to at least keep them out of a real war. China will easily absorb these tariffs, but I'm not so sure the people who voted for Trump will tolerate them as well. Maybe China is doing us a favor in the long run if it means voting this clown and his enablers out of office.
2
Seriously, does anyone really believe this will end well?
9
I am reminded of the story about the old man on his deathbed, who calls his five sons to him.
He holds up his hand with one finger extended and the others curled in a partial fist.
He says "You can easily bend this one finger if you try."
Then he holds up his hand with all the fingers held together in extended configuration, and he says "Try to bend these five fingers. It is easy for me to resist your efforts to bend them."
Then he tells them "The moral is, if you stick together you will be strong, and if you try to stand alone, you will be weak."
End of story - (which I would guess Fred never told Donnie.)
Trump tries to go it alone against everybody. He does not care for multilateral agreements. He places very little store in having allies.
We are going to take a pounding, in my opinion. Buckle up.
5
This trade war is just the opening move of a long term struggle between America and China. All "China watchers" should read "The Hundred-Year Marathon" subtitled "China's Secret Strategy to Replace America as the Global Superpower" by Michael Pillsbury. There is an hour long interview of the author on the Asia Society web site.
4
The Japanese, Chinese, and South Koreans have long term economic plans that have paid off and that involved hardball trade policies. It was their long term plan to be global players and that includes trade comity with the the USA and the Europe (that also essentially played the long game). Look at what that has bought the American consumers. Cheaper quality goods, outstanding appliances, auto industry employment, and humongous financial investments that made uber-rich Americans more uber-rich. Fellow Americans who voted for Trump believe MAGA which guised nationalism as an excuse for racism and false entitlement. Where are their brains and hearts? No wonder Trump and his cohorts are gutting education to keep them infantile and not know any better.
8
It has cost America millions of jobs, theft of intellectual property, and export markets. Democrats have made an incredible mess of the us manufacturing base, just go to Walmart and see how much stuff is made in China at the expense of Americans jobs.
2
James, somehow I doubt that only Democrats shop at Walmart.
What has made a mess of the manufacturing base is lack of education, productivity and innovation.
Americans are unwilling to pay the cost of American made goods, and are unwilling to become a modern workforce.
Until there are substantial investments in education, science and innovation, North American industry and workers will continue to lose ground.
A few more tax cuts for the wealthy should just about finish off the USA.
It was largely the agricultural farm belt populace who voted for Trump, now he's asking them to drink the Kool Aid to prove his point. If this wasn't sad, it would be laughable
5
What's laughable is city folks who don't have a clue regarding the voting patterns in the 2016 Presidential election. The agricultural farm belt populace did not even constitute a majority of Trump voters. But, what can you expect from a bunch of well informed, highly educated folks who would pay for a diploma that costs more than a house with two electric SUVs in the driveway? Now, that's some sad Kool Aid.
Well, you can say one thing about President Trump: he goes big. If this radical break with international trade policy, basically in place since the Depression works, whatever that means, then most of us will have egg on our face.
But this is quite reckless. I see the President's trade policy, the tariffs specifically, as more about his ego than anything else. I suppose if he wants to take chances with is own money and credit as he risks "it all" in the New York market, he is welcome to do so. But he is gambling with not just the solvency of the US economy, but also the world's financial foundation.
Beyond that, whom does this help? Many of the folk who supported him in the Upper Midwest, those reliant on what remains of the US auto industry, are going to be hurt by these moves.
Of course political tribalism is so entrenched, most voters are not driven by policy. Rather they just care if their side or their guy is winning.
They may be whistling a different tune when their financial situation is more dire than anytime in recent memory.
5
It was a grave mistake to pursue policies, until now championed by both parties, to tear down trade barriers and cede both our industrial base our middle class to low wage countries such as China. But that bell cannot be unrung. It will take a generation to rebuild our industries, and the individuals who were displaced by globalization are never going to get their old jobs back, no matter what edicts are decreed. The current trade war, started without the assent of congress, will only bring further misery to the populations it was intended to protect and ultimately to the broader nation as a whole.
3
The trade war is the first Trump initiative I 100% support.
This importance of the election in 4 months can not be overstated. There is no issue in the world more important than Democrats bringing a check upon this president.
I don't care how bad the war gets, if it hurts Trump's support then its good. It is that simple for me.
18
It won't hurt Trump supporters at all because we realize Trump is fixing a Democrat generated mess. China has violated every WTO rule, stolen intellectual policy and currency manipulated to make their goods appear cheaper at the expense of American jobs. There was never anything fair about Chinese trade and only Trump has the guts to fix it.
18
James, sorry, the same exact thing was occurring under Bush as well. Blaming this on the Democrats is dishonest.
“China has violated every WTO rule, stolen intellectual policy and currency manipulated to make their goods appear cheaper at the expense of American jobs. ”
While I totally agree with every point made in that quote, there is nothing about what Trump is doing that is guaranteed to fix these issues. So far all he’s doing is adding tariffs. If that reaches it’s logical conclusion of $300-$400 billion in tariffs against China, it’s going to cost a lot of American jobs.
The Chinese are used to going without goods and services...I don’t think the people in Trumpland are going to too happy about 500% price increases at Walmart. Those Mark Wahlberg dvds and cases of Pepsi are going to be a lot more expensive. But I suppose being able to put thumb in the eye of those darn liberals makes it all worth it, right?
Here's my prediction.
And take it for what you will as a someone who is neutral on Trump.
If the economy survives this, Trump wins in 2020. Not handily, but he wins.
If the economy crashes and burns, I don't think the GOP waits until 2020 to deny his nomination. They will join with the Democrats and they will impeach him.
2
Wrong! If Trump's actions make the economy tank his supporters will blame the Democrats as usual.
5
His support is tenuous with the Republicans. Most don't consider him one of them and if the economy goes bad, all they need is an excuse to get rid of him. I suspect they wouldn't mind a President Pence.
The Grifter-in-Chief has made no secret about how to influence him:
"President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast," Trump tweeted Sunday. "Too many jobs in China lost. Commerce Department has been instructed to get it done!"
Remember that tweet? He had just lifted sanctions on Chinese spy/phone company ZTE after Xi announced $500 million in financing for a Trump venture in Singapore. That was Trump openly championing CHINESE jobs and selling out American national security interests because the Chinese paid a bribe to Trump through one of his business entities. Yes America, Trump wears his corruption and treason with pride and his GOP loves him for doing so.
I'm sure he must be baffled about the Chinese (and every other nation that he has slapped tariffs on) taking so long to do the same about his tariffs. No doubt he and his supporters blame those countries for this trade war because they are not paying off his extortion instead of the Grifter-in-Chief for this needless mess.
6
I may be totally off the mark, but could there be an underlying racism in these new tariffs on China?
Why couldn't this "Trade War" have been resolved by diplomatic, behind the scenes, negotiation? Bombast and Buffoonery! Is Trump's way the best way to win friends and influence people?
3
Trump is a phony at wheeling and dealing and we are all finding it out now. Mitt Romney said during the campaign when he did not show his taxes Trump is hiding the truth. The GOP are bullies and it is my way or the highway rule and they are reaping what they sow following that rule and so are we . Thank you religious organizations for causing all this . You are suppose to be christians but do you know what a christian is. A bridge builder not a war maker.
Thank god! The free markets and globalization are coming to an end.
1
I'd be curious to know what the good folks at Husco International who voted for Trump are thinking now.
6
Just another simple hammer tool approach to a complex world in order to "TV show up" some sort of show of force that appeals to vaping rednecks. The trump voter who doesn't have a business, a farm or a factory to run will love it. so tough...but on American business.
4
Trump takes on the world - Americans watch out!
2
trade war is justified with China and Europe has stopped laughing at us as they will become the big losers
Why will Europe be the big loser? The only big loser will be the USA in the long run.
Oh, don't kid yourself, the entire world is laughing at you, not just Europe.
1
Many people mistake the facts. The reason re is a supposed trade imbalance is because US companies make bigger profits by off shoring production to China. American consumers get fatter 401ks and lower cost items. Knowledge transfer to a less developed economy is absolutely normal and is permissible under WTO. This just a hidden tax.
5
It is amazing - and amusing, if people's livelihoods are not involved - the ones getting hurt most are Trump's base and they cheer him on anyway
7
While still feeling substantial lingering effects of the Bush Great Recession, American Exceptionalists gleefully dive into the Trump's Huge Depression.
Anyone else remember the Reagan Recession?
Ain't we got fun when Republicans rule?
8
How soon will the effects of this blunder be felt in the three areas cited: manufacturing, agriculture and tech? November is still four months away, November 2020 another twenty-eight.
I suspect the privacy of the voting booth is the only place that most of Trump's base will ever admit how wrong they were.
6
Don't hold your breath, the,Trump base has drunk the Kool-aid and will die first rather than admit defeat.
2
I don't agree with Trump on how to to go about this, but he is very right that we need a reset of our trade relationship with China as a nation. Most of the agreements we are living with today were set in the 90s, when they were an "emerging" economy -- clearly they are no longer. What Trump should be doing is outlining a set of policies that is "fair" and defensible.
In addition, I think that it must be said that China's biggest fear is not economic, per se.....rather it is fear of internal unemployment. They have done everything they can to win or steal jobs because without the export driven jobs, there will be mass unrest.
1
We live 20 minutes east of St. Louis, on a farm in Illinois with a soybean crop presently in the field, and a 25 kW solar system that essentially meets our needs. Our contract farmer, who planted the soy beans, will probably operate at a loss this year, and anyone thinking about solar panels will stop thinking. What I am thinking is, "Can you think of some additional ways to harm America?"
6
Richard, I'm sorry to hear of your situation, however I'm sure Trump will find more ways to harm the US economy.
I'm not feeling smug, here in Ontario we followed you right off the cliff and elected Doug Ford.
Maybe misery really does love company?
Soybean futures are up sharply today. Are some of the more powerful Agribusinesses on the phone with their congressmen?
Maybe it's wishful thinking, but I have to wonder if the RNC isn't getting serious pressure from corporate interests across the spectrum. Since they have their dream rate on corporate taxes, maybe the'll just put the barking dog in the backyard and try to ignore him.
2
1. Trade, with whom and on what terms is foremost a
political decision.
2. Hence politically powerful groups decide the terms. Economic analysis is useful but not decisive
3. Examples of above are US and Canadian farmers (US:
Tariffs on Brazilian bio-ethanol, Canada : Tariffs on US Diary products) to protect their standard of living. Free trade in agri goods ended in the 1920's
4. Globalization has exposed many more groups to global
competition. In a free trade world, wages of those
newly exposed must fall to the global wage level.
Most in Western countries are not willing to work at
those wages.
5. In response, just as the US farmers in the 1920's these
groups are trying to influence politics. The farmers succeeded,
how it goes with other groups is a political, not economic
contest.
6. No country can run a persistent trade deficit without losing its independence, either financially or strategically.
China used to buy US treasuries but becoming more nationalistic uses US deficit dollars increasingly against the interest of the US. Read "How China Got Sri Lanka to Cough Up a Port" (NYT). China is buying up strategic resources in the US (its last rare earth mine in the US) In Africa, China is using those dollars, to rapidly replace US commercial and strategic interests.
7. As to politics: Economists advocating globalization, free trade, and free movement of labour overlook(ed) that the groups that lost out would vote. They do. See Brexit, Trump, Orban...
1
Only when the rising tides withdraw, we will find out who will the victims of trade war. No doubt about it, they will be consumers who buy and use items made from China everyday. Insiders or the presidential family members should have already found the safe heaven to avoid the trade war damages, and maybe benefitting from it. Just like NY Times reported several days ago on Judge Kennedy. Who would have known that son of Supreme Court Justice Kennedy is the person in charge of global real estate for one of the largest international financial brokerage who constantly dealt with Donald Trump when he was a business developer in NY city.
3
Let consumer prices rise and Trump hardcore supporters celebrate the higher consumer prices!
3
In this war, I predict a short, sharp defeat for the US of A. To it's credit, the American people are not fond of war and the hardship it brings and they get to elect their leaders. China does not elect their leaders and the leaders are not going to worry too much about any hardship the people face while they wage a war which I believe will ultimately leave China the leading world economy. Maybe if the US of A hadn't decided to attack all its traditional allies at the same time it would have a chance.
7
I hear you. Many Americans hate Trump. Please spread the word.
2
I guess $500 million investment China committed in far east venture where Trump family business is partner has run out and needs more infusion of Chinese capital.
And/or,
Ivanka needs more trade licenses in China approved.
3
The U.S. has, and has had, for many many years, a trade deficit of over $1 trillion a year with the world: CHINA = a NET $375 billion deficit + G-6 = a NET $320 billion deficit + INTELLECTUAL THEFT a NET $400 to $800 billion, and, AT MINIMUM, A TOTAL OVER $1 trillion a year! Add in the facts that U.S. companies MUST share their technology with China, PLUS U.S. companies can own NO MORE then 49% of any business in China! How can anyone determine that everything is just hunky dory in the international trade 'business?'
2
There is no requirement to do business in or with China, unless you count unfettered greed as a requirement. It seems in the USA, greed overpowers everything else including health and the long term...
5
What will 25% tariffs on steel and aluminum do about technology transfers? Why is the trade deficit important? We get their stuff in exchange for money we print. Big deal!
What did Mr. Art of the Deal demand in exchange for not imposing tariffs? Nothing! Proof by itself he's not trying to accomplish anything except look strong to the unknowing.
5
Hatred of Trump blinds the Times to the facts. China is a brutal, murderous dictatorship that has become an international bully. They are currency manipulators. They have been stealing trade secrets on a scale never seen before. Their requirement that companies turn over technology to them to be allowed to do business in China is against international norms. And they have much more to lose in a trade war than we do. If all trade between the two countries stopped, China would suffer far more. The Times' counterargument is: TRUMP! I look forward to the surprised response from the editors when China blinks.
3
All true, pretty much. I've always been puzzled why we embargo a brutal authoritarian regime like Cuba, and admit China to the WTO because it's only a brutal authoritarian regime.
But that doesn't make Trump's tariffs rational. What about Canada, for example? You don't have to hate Trump to see he likes to exercise power, or that his justifications have no basis in reality. And it's not as though Trump imposed the tariffs unless and until China releases political prisoners and allows greater freedom of expression. As if.
The trade deficit doesn't matter. That's just an economic fact. American tariffs are taxes, paid by Americans. That's another economic fact.
You might add them to the facts the Times is blind to.
4
Facts blind Trump-ites. Do you know why he did this rather than go to the WTO? Because according to WTO rules - China is not a developed country. As such required tech transfer is the norm. But why let facts get in the way??? Like claiming China "stole the jobs" when US companies were the ones who rushed into China to exploit cheap labor.
7
I'll bet America is really gonna be Great Again when everything costs twice as much and none of us have jobs, right?
9
After reading this article and others like it, I can see that the subject of foreign trade is far too complicated for President Trump to understand. I can't be summarized in a bullet point. So no surprise that his policies on trade make no sense.
7
America essentially lost the trade war by the early 2000s.
Democrat, Republican, Independent and non-voters began opting for cheaper goods made in China rather than face the long term trade imbalance experts warned us about years ago.
We are reaping what we've sown America.
11
A trade war with China will hurt the US more than China. We seem to forget that China is a Communist Country with central control. If the government says to it's people tighten your belts, they will do it. We seem to forget that most of our consumer products are made in China. Without China Walmart would go out of business and Walmart customers are Trumpsters.
4
Now we shall see how Trump's economic "policies" are going to work out for those who voted for him as well as those who voted for Hillary. It appears from what he says that Trump is totally out of his depth when it comes to understanding the macro-economics of America and the entire world. Thus his game may have serious unforeseen consequences for so many who thought he knew what he was doing.
2
I believe Trump has a personal and irrational reason for imposing tariffs. Something in his past that affected him or his business ventures called for retaliation or " punching back harder" as Trump boasts. I don't think it's anything more to it than that. As for his attacks on Trudeau, Canada's Prime Minister well, Ivanka has shown her near infatuation with Trudeau at public gatherings. Daddy can't be happy about that you know; what with his talk of potentially dating her if she wasn't his daughter. Ergo, tariffs and personally attacks. It could be more than that but I doubt it.
8
This will not end well for the US or for the majority of Trump's base who are under-educated service and "blue collar" folk. China thinks and acts in decades, we think and act in days or weeks at best. They know Trump is a short-timer and in a few years, he'll be gone. They'll ride this out and we'll suffer...
7
I just want to remind everyone one more time of the following eternal truth:
"Trade are good and easy to win."
D. Trump
So don't let any news putting a dent into that truth ruin your day. Those likely are fake news anyway...
2
Just remember, the only way this makes sense is that this is not actually a government. Rgere is not "Trump Administration.
There is Trump TV. Weekly plot twists and daily drama are what Trump gets. It is what makes him tick. I think it is by now what makes a lot of Americans tick.
As he always reminds us, he is great for ratings.
This is beyond Wag the Dog. Trump is the tail itself, wagging itself, a kind of zen koan, and here we are, trapped as if our eyeballs were propped open like in A Clockwork Orange.
5
Donald Trump, please change your name to Herbert Hoover. Inflation is bad enough. With tariffs, inflation will become worse. If free trade is so bad, why not let California put a tariff on Florida tomatoes? Trump needs to fire his economic team -- and himself -- and hire people who are familiar with Adam Smith and David Ricardo. Will someone give Trump a subscription to The New York Times and The Economist?
2
These tariffs are great for the country! we can buy TVs from Zenith, RCA or Sylvania, rail cars from Budd or St Louis Car co., metal from US Steel, and good old American made Levis! this is rebuilding American industrial might. oh wait, none of those companies exist as American manufacturers
4
Soybeans to right of them,
Pork to left of them,
Technology in front of them
Volleyed and thundered;
Stormed at with Lo Mein and Wontons,
Boldly they rode and well,
Into the jaws of Tariffs,
Into the mouth of (more) expensive Apple products
Were dragged the Americans by an ignorant President.
8
This will lead to a world war when people get desperate and can't afford once affordable items. Gemanys leader has said this yesterday . The GOP are total hot heads . Trump last year wanted to invade Venezuela when they were having domestic problems. Mr Tillerson quit over that and his other aid. They knew Trump is trouble. The GOP must send in their sons and daughters if they cause any more wars . And start with Trumps healthy sons. Pull them into the military. Sacrifice like we did in the military.
4
I'm glad this is happening. When the economy starts to flounder, people will feel pain. That's the only way to get rid of Trump, when people feel betrayed by the man they votes for. No pain, no gain.
2
Someone once said your biggest nightmare is getting what you wished for. Trump's thirst for a war could not manifest itself in nuclear war so he has quenched it with a trade war. His underlying principle of the US getting a raw deal has some merit. The Art of the Deal "genius" treats a trade war as one dimensional, they sell us a lot more then we sell to them. In this very one dimensional view he might "win", assuming the real victims, business and ultimately consumers are willing to bear the pain.
This might work with "civilized" trading partners who are loathe to deploy underhanded tactics such as those on our borders and the EU. Ruthless China has no such civility. Given that there are many more US businesses in China than the opposite, China can and will use its authoritarian methods to disrupt them as much as it can. Ask the US fruit distributor who had a shipment quarantined, only to see it go bad. Should our allies see this work there contempt for Trump may lead them down a similar path.
This is multi-dimensional war. Trump's one-dimensional brain cannot fathom this and his ego sees only one response, more tariffs.
No one can predict an outcome to this ""war. Many policy wonks will be on TV offering a multitude of scenarios.
2
I read online in the Chicago Tribune, "In the fiscal year that ended Sept. 30, the U.S. government collected $34.6 billion in customs duties and fees. The White House Office of Management and Budget expects tariffs to fetch $40.4 billion this year." So that's almost $6 billion more in revenue to be budgeted for good use by Congress. Assuming US consumers will be paying higher prices on some goods because of he tariffs on imports, state and local governments will also collect more in sales tax, right? Why isn't this revenue uptick part of the discussion? As long consumers are going to ultimately pay the price of this little Trumpian hissy-fit, shouldn't we as citizens and voters be allowed to say how we want the revenue from his tariffs spent? Compared to the unmet needs of so many Americans for healthcare and higher education and job training alone, $6 billion is pocket change, but every little bit invested in the health and education of American workers and families pays both immediate and long-term benefits to our society and our productivity and performance in the global economy. Let's start talking NOW about how we want that tariff revenue bonanza spent to build our nation.
4
Well, whoever is pulling Trump's strings knows what they're doing. And it will hurt everyone but the stringpullers.
11
Well ....There goes Obama's jobs recovery.
There goes the family farm.
There go the jobs back overseas.
There goes Dad's new truck and Mom's new SUV.
Music lessons and math tutoring?
Soccer???? Oh.....well.
Forget health insurance - you kids try not stab each other or break any bones. Tell your Dad to let the roof go. We can't afford for him to fall off the ladder. Mom has a migraine? Well.... get her some aspirin.
Christmas presents? hohohohooh ahahahahahahaha
Oh and one last thing VOTE IN NOVEMBER.
15
And for what? To nominate justices who have made up their mind on abortion rights, gay rights and consumer protections before hearing arguments.
4
I really don’t think that many of Trump’s supporters care what happens to them.
They will gladly give their lives in support of him.
It’s not about solving any sort of problem. It’s more about feeling the power through making “others” suffer.
This is a cult in every sense of the word.
It’s destruction for the sake of destruction, and in search of the resulting “high”.
A very sick dynamic.
26
In a trade war, much like a real war, it’s not who has the most to lose, but who can best sustain the loses that determines the winner. So thin skinned impetuous publicity minded Trump expects to win over the entrenched prideful Chinese bureaucrats and their state controlled media and compliant population? Hardly a fair fight. Trump is likely to waffle and back pedal, just like he did with North Korea, and end up with a worse deal than before. But that won’t stop him from declaring victory and heaping acclaim upon himself. By walking away from the TPP and heaping scorn upon our allies, he already wasted what real advantages the US had going into a trade war with China.
Will Trump voters ever wake up and realize that by voting incompetence into office they’ve harmed their own future and weakened the US overall?
8
All TPP would do is shift more cheap labor around.
Andre, TPP would have allowed significant American influence in the Pacific Rim.
Now you're on the other side of the fence, with no influence, complaining that China now has more influence.
That's what happens when you let a 3 year old make decisions for you.
Rod Sheridan - China is already the largest trading partner in the Pacific Rim... TPP wouldn't have changed that. In fact the RCEP which is set to be wrapped up this year - which includes China and most of Asia - is much bigger than TPP.
China is a bigger market for almost every consumer item than the US. So what was the US going to do in Asia? The reality is all TPP would have done is open more sources of cheap labor... WHich in reality is why Bernie Sanders and Hillary Clinton were against it. The reality is Democrats and Republicans both lie to their voters. I'm not Trump fan.
It's not just the tariffs themselves that will come back to bite America - it is Trump and his machinations.
With citizen action in the affected nations like Canada going out of their way to not buy anything from America, that too will add to the pain of American exporters. Even if just a small percentage of a nation's people do that, it will add up quick. And it is more than just a small percentage taking part - and it grows with each insult Trump nonsensically hurls our way.
Trump should have paid more attention in that military school he went to - he fired the first shots, expanded the war to multiple fronts and has no allies. Yet he expects it all to be easy.
15
I wish our president had an aptitude for complex subjects.
14
take heart Americans, maybe we'll be lucky and tariff kick-ins may prompt the start of a presidential kick-out.
We can only hope.
8
Democrats can use this to bury Trump.
First, simply start referring to him - at all times - as "Tariff Trump."
Always and in every reference.
Without fail. Till it sticks like tar.
(try it… Tariff Trump)
Start a running daily meter with these measures:
Show the increased price of various items.
Show layoffs in affected industries.
Show economic decline that tracks the duration of the tariffs.
Broadcast quotes from Republicans decrying the tariffs.
Broadcast quotes from business leaders.
Broadcast quotes from economists.
Show workers who have been laid off.
Hear them angry about why Tariff Trump messed them up.
Interview average Americans and let them tell stories about the decline of their 401k savings as stocks fall.
Scare people.
Hyperbole is Trump's favorite weapon.
Give it back to him with a vengeance by listing the many negative consequences on prices and jobs and savings his decision will bring.
Exaggeration is welcome!
Paint him as incompetent…relentlessly.
Unable to think straight and making this tariff policy based on "his gut" or, worse, some personal gain he will realize with these policies.
Hey, nobody knows his financial conflict of interests anyway so just make it up to tar him.
All good.
Don't give a Russian collaborater, an enemy of America any quarter.
Pile it on!
So richly deserved.
16
Well said. I have always wondered why Democrats never use simplistic language to hammer away at trump. It may not be a high brow tactic but is extremely effective, as the Republicans have consistently proven.
6
Yeah. Too bad the party doesn't realize the power of soundbites in America's heartland.
1
Thanks Trump, Trump's economic advisors, and the Trump base,
You really hit this tariff thing out of the park.
Now our prices for everything from cars to bricks, from soup to nuts, will rise up and up and up.
You're all the cat's meow, the best thing since swiss cheese, the crem de la crem.....
5
When the working class gets hits with the "collateral damage" of this war (unemployment and their 401K's tank) they'll know how much Trump is their hero. TOO BAD
5
This will not end well.
America is in the grips of a person who has gone bankrupt....5....6 times?
Trump is delusional and the republican's blind lust for endless power is treasonous.
Fasten your seat belts this will be a crash landing.
10
America has become an autocracy--or a kakistocracy or an oligarchy, if you prefer.
Certainly not a country governed under bipartisan democratic politics, but a nation with a Congress where members who might make a difference seem intent only on re-election, with a Cabinet of bobbleheads, with an ideological majority on the Supreme Court put in place by a conservative zealots.
In the meantime, the standard of living for the majority of people in the country falls while economic indices rise, helping the already-wealthy. Healthcare is unaffordable or inadequate. The educational system is in decline. Racism and bigotry are overt facts of life, sanctioned by the chief elected official.
Dozens of indicators of societal well-being fall well-below acceptable global standards for an advanced economy.
Tariffs imposed by a single autocratic, narcissistic leader are another rock in the pile of policies sending the country back to an earlier century.
Wishful thinking that tariffs will hit Trump supporters hard isn't enough to break the one-ruler-one-party stranglehold on the country right now.
The question is, what is?
3
While this trade war will hurt American customers, it will hurt Trump's low-income base the most, so in a way I'm glad that this might be a wake up call for them. Only their own financial ruin may make them realize what a huge mistake they made in 2016.
5
Unfortunately, it's rather unlikely that a significant number of his followers will respond appropriately since they believe anything he tells them.
7
Cue: alternative facts and Fox News.
4
China should hit Trump where it really hurts -- hit the personal holdings of Trump and his family.
Start by revoking all those trademarks given to Ivanka. Next, withdraw China's curiously-timed "investment" in Trump's Indonesia project.
https://www.nationalreview.com/news/china-contributing-500-million-trump...
China should have known that Trump is not an honest politician. To paraphrase Simon Cameron, an honest politician is one who, once bought, stays bought.
Then lean on the host countries of any other Trump projects in Asia, to make it difficult to finance or operate the properties (e.g., by restricting travel from China to those properties). Trump, having withdrawn from the Trans-Pacific Partnership, may find that his influence throughout east and south Asia is declining, while the influence of China is ascendant.
9
The greatest problem with this "trade war" is its context in Trump's economic philosophy. Reasonable people think in terms of ending the trade war and restoring normal trade. But Trump's underlying belief, which has been stable over his decades of public life, is that international trade is a bad thing for America. This is provably false, but when Donald Trump has made up his mind, he doesn't want to be distracted by the facts.
Trump thinks that America will be great if we limit foreign trade as much as possible. He'd be glad to see a world where all our international trading relationships collapsed. The consequences of his enacting this basic belief would be catastrophic for the American economy, as well as the rest of the world.
The president and his administration don't want a way out of this trade war. They see limiting international trade as a valuable goal in itself. Trump's endgame is isolationism, not re-balancing. If the American people are to respond appropriately, we need to understand the whole picture.
7
While I'm hesitant to disagree, I think he sees trade imbalances as a zero sum game, where two sides cannot both be "winners". He misappropriates lessons from real estate deals as a businessman to trade policy and economics as a head of state.
2
Why isn't there a distinction made between fully Chinese goods, and those that are made for American companies?
I've always wondered how American companies were allowed to ship so much manufacturing overseas at the expense of its communities.
The problem with offshoring is that the process started 40 years ago. It's a little late in the game.
2
Let's get one thing straight; Trump loves cheap Chinese junk when buying it is advantageous to him. And Trump is also a pathological liar. But Democrats need to understand that China is NOT your friend. They have been ruthlessly and relentlessly stealing American intellectual property and industrial (and military) secrets for decades. If liberals are angry at anyone, they should be angry at themselves for dropping the ball on issues of trade and outsourcing. I clearly remember when faced with legitimate criticism that NAFTA lacked labor and environmental protections, Clinton, Gore, and the corporate wing of the Democratic Party said about "Pass it now, fix it later!" Naturally, it was passed, then never fixed. Granted this doesn't apply directly to China, but it symptomatic of how the Democrats sold out their working class base, opening the door for lying demagogues like Trump. Bottom line; Don't jump into bed with China juts because Trump is pretending to be anti-China. And in the future, don't sell out America to Wall Street.
2
'Tariff' is a word for most Americans do not understand. This is why Trump wins again. Here's what most understand: China bad; America good.
4
I thought Donald took care of all of that, after all, he said so.
1
China should demand and force North Korea to denuclearize with haste, as a condition of any discussion of ending tariffs.
1
Democrats were anti-Free trade before Trump. They blamed evil capitalists for free trade and taking away their jobs.
Now they are all free traders.
I suppose we did not realize how indignant China would be when we finally began objecting to their blatant and unapologetic thievery, their one-sided playing field, and their dumping of their products on our markets.
I recommend boycotting every Chinese product. They are made with technology stolen from us anyway.
2
Unfortunately NV, the entire western world will now start boycotting American products.
I've cancelled my 2 US vacations this summer and am now reading the labels on everything in the store.
No more Heinz products, no more orange juice, I can buy Canadian made products from French's and apple juice.
We don't buy much Chinese stuff in our house, I always tried to buy North American, and European, now my North American purchases are down to 2 countries from 3.
Trump has a childlike brain; his comprehension of macroeconomics is as good as that of the average 13 year old. Take a way oversimplified problem, America pays more for imported goods than it takes in. Then solve it with a way oversimplified solution, stop those imports with tariffs. Voila, problem solved. Now what other simplified problem will we solve ...
This is like improving the gas mileage on your car by shutting off the gas supply to the engine. You'll use less gas -- aha, problem solved -- but the engine won't run.
Trump cannot comprehend that there is a problem with his logic. Way over his head. As Trump's ghostwriter said that he doubts that Trump has ever read a book and certainly couldn't write one.
So Trump just makes decisions based on ignorant intuition. Let's get that straight, major international economic decisions on massive tariffs based on middle school level intuition. What could go wrong?
9
What authority does the President have to halt imports? Your solution is simple, but he has no authority to restrict the flow of goods.
Also, the suggestion that Trump himself devised the tariffs is absurd. Kevin Hassett and Wilbur Ross know aren't basing decisions on ignorant intuition- they know exactly what they are doing.
This isn't New York real estate and nobody is afraid of you Mr. President. Please don't crash the economy because you are too proud to back down.
4
We will pay more for goods, thanks to Trump's lack of any business acumen. The only saving grace is that I can now enjoy the myriad of excuses Trump supporters will use to defend his illogical actions and lies. At least I can get something out of this.
6
This is a bit like the War on Terror. Islamic radicals were at war with us for years...but we didn't know it. China has been at war with us for years over trade...we are finally waking up. My guess...we will cave...and it will be the end of the USA as a global leader.
1
Return of the Dragon. Bruce vs. Donald. And the winner is....
Suggest stockpiling durable goods & foods...this could get bad real fast.
2
For most of the past 2200 years China has been a civil secular socioeconomic political educational technological scientific technological demographic diplomatic and military superpower.
About 20 % of the human race is ethnic Han Chinese. While China has the nominal 2nd GDP economy, on a per capita basis it ranks 79th behind the Dominican Republic.
Chinese President Xi Jinping has been designated a "core leader" whose thoughts are worthy of study by Chinese Communist Party members. Having eliminated the collective term limited leadership model, Mr. Xi can rule with the "Mandate of Heaven " of a Chinese emperor. Bigger and better than Mao Zedong as China has become a free market capitalist corporate plutocrat oligarch welfare country.
Donald Trump inherited his real estate wealth while playing a businessman on TV. Trump is beholden to Vladimir Putin. Xi is not.
6
China has not become a "a free market capitalist corporate plutocrat oligarch welfare country". SOEs still dominate the country's enterprise. China has become more autocratic, if anything.
1
Mr. Deng meant and made commerce.
Mr. Mao meant and made chaos.
Trump has become more autocrat than both men.
Death by SOE not hardly. Jack Ma part Bezos, Jobs and Zuckerberg together.
Trade wars with China are just one more evil spirit flying out of Pandora's Box. Trump opened it when he was elected. The economy will soon suffer from his foolish and ill-timed actions. It is time to get rid of this president or we are all doomed. He has done more damage to the country and its spirit in less than two years in office. Get out and vote the Republicans out of office in the mid-terms this fall. And then let's get a move on with impeachment and removal of Trump. He is a dangerous demagogue who is destroying democracy. We cannot afford to sit back and let this man destroy our country bit by bit. The time to act is now. We deserve better than this.
5
Glad to see it referred to as *Trump's* trade war, so that when it becomes clear even to his sycophants that it is a bad idea the world realizes it is *his* bad idea.
7
If Trump's actions are indistinguishable from what we might imagine an enemy would do if given a turn at the reins, should this not alarm Congress to take some drastic, self-protective action? That it does not reveals all we need to know about being unpatriotic, irrational, unprincipled, and cowardly.
5
Frankly, the disgrace here are McConnell and Ryan. But what comes around, goes around.
6
I have worked with Chinese and they absolutely do not care for anyone other than themselves. They will do everything to promote one of their own kind and at the same time go out of their way to exclude others. One of the items that we should absolutely not import from China is food stuff: the folks in China need do not have the same "ethical" values in producing food items and will do anything to make a sale whilst the product might even be seriously harmful to the health of the consumer. I haven't looked at all the items on the tarrif list but considering the predatory nature of Chinese business we should tax everything that comes in from china: EVERYTHING. I am certain that every product coming from China has been manufactured using some short cut or another.
3
Do you mean putting things like Roundup in our food?
3
What you are writing 100% describes my experiences with working for Americans in Europe. No clue about cultural differences, rather paying millions for American advisors than listening to the local people that know. Not considering implications of international business and not giving a thought about it including not being compliant with local laws.
With regards to food: the way food is produced, packaged and sold in the US is appaling from my perspective.
And I am saying this as someone who loves the US. Unfortunately the damage Trump is havocking will be irreparable for the world order that served all (or most) of us well these last 60 years.
7
In my opinion Congress, the Executive Branch, and to some extent the judiciary, need to take a few steps back because they can't see the forest for the trees.
The primary problem we face is the inability of our current government to recognize positive change and adapt to it. This not 1800 or 1900 or 1950 or 1975.
Clear cutting of American principles (the "forest") to turn the clock back to the 1950's when America stood out much more clearly as a leader among nations, is self-destructive behavior.
The world, in large part thanks to the United States' fundamental principles, is a much different, and better, place for others than it was in 1800, 1900 or 1950. Not perfect, but better.
What is wrong with that? What ever happened to the concept of equality and unity? According to the Great Divider, all men are NOT created equal, of if they are, then that needs to change so that others must be suppressed with only America left standing.
Much has changed, yet, the Great Divider and his disciples want to will the world back to the past when the U.S. was far ahead of most of the rest of the world in many ways. So, rather than forge ahead, the Great Divider and his disciples want to push the rest of the world backward notwithstanding that generations of Americans helped move them forward.
Please, Please Keep America Great!
1
There goes the inflation rate.
3
Why do we assume that Trump wants anything but a major depression to roil the US economy. He probably already figured out how to personally prosper from one, and more importantly, can use the tanked economy to consolidate his powers as a dictator, along with the other world tyrants that he admires. Have we forgotten all of the lessons we were taught in the 1930's? I guess not.
7
It seems apparent that the real story of what's happening here, both the underlying economic shifts and resulting ideological interpretation by media, is far from what the public is being told. The same recycled angles are: "this isn't going to end well," but also "China is an ominous threat." The NYT is complacent with the idea going to battle with China, but opposes Trump's methods of doing so. If 2008 taught us anything, it's that blaming other countries for the next inevitable recession will be the favored scapegoat.
1
If 2008 (and 1987 and 1992) taught us anything, it’s that massive tax cuts for the wealthy never benefit the working class (which is how they’re always sold) and always destroy the economy.
6
"the real story of what's happening here... is far from what the public is being told..."
OK. What's the real story then?
1
It’s easier to retroactively explain what the agenda is, but to be sure I don’t think that a president singlehandedly going against the wishes of the entire global capitalist order is remotely feasible given he’s in practice objectively ordinary and obedient to the wishes of corporate power. It’s deceptive and dishonest that whatever economic failure results from this, if any, is to be put squarely on the shoulders of one man. Also, just the framing that “China looms large on the horizon” is typical propaganda. It is indeed true that the well-being of non-American corporations affect the well-being of Americans, but that’s to the extent that we accept that any lapse in profits domestically stands to hurt us. In that way yes it’s true that we are totally at the mercy of the corporate powers that demand nothing less than total hegemony.
It would seem that in this global economy products are made from components that often come from elsewhere regardless of the country. A tariff against Chinese goods can easily apply to components that come from other countries including the U.S.
Remember the trouble that precipitated when Lehman Brothers went insolvent? The web of financial relations that was not apparent meant that the failure of one company cascaded into impending failure of many other firms which required that the Federal Government step in. That’s apparently the way the global economy is interrelated. What Trump is doing is targeting products broadly without paying attention to the details. The Chinese retaliations could also produce unexpected consequences in this global economy. Trump is risking unexpected outcomes by assuming he knows the effects of his actions well enough when he doesn’t.
2
This is going to teach China and other countries not to depend on the USA anymore. There are plenty of other world markets just waiting to bloom in the new arrangement. For instance: Brazil is a big producer of soy beans - who needs the USA? That's just one example.
18
This will teach China that if they want to do business with the world's largest economy, we won't allow them to rip us off. China has been manipulating us for years, stop making excuses for them because of your dislike for the President.
16
Yeah, hurting American businesses and consumers is sure going to show it to China! Did you read the article? If you had, you'd know that the bulk of the detrimental effects of this trade war are going to fall on American shoulders. China absolutely engages in exploitative, unethical trade practices, and deserves to face consequences for that. But this clearly isn't the way to do it. It has nothing to do with dislike of Trump and everything to do with his boneheaded, regressive trade policies.
158
Trade war with China will have a detrimental effect on you....yes you....and on most other Americans. Continuing quiet diplomacy would have been more effective in the long run.
What Trump has initiated has destroyed the advances that had been made with China......and we now have probably lost China as an “ally” in dealing with N.Korea. Trump has created a monster, and that will cost us.
70
Both ends of the political spectrum stubbornly cling to the notion of well paid semi skilled jobs. The concept is irrelevant in the age of automated manufacturing and AI. We will compete in the world economy with innovation and creation or we will not compete at all.
10
Because both ends of the political spectrum seek to secure benefits for the semi and unskilled sectors of their constituencies. The information age has only just begun, it's effects will be as profound as the industrial revolution or more so, and protecting vestiges of a previous era will invariably be counter productive. When the waters rise you either sink or learn to swim.
4
The power to fund innovation and new ways of doing things requires new wealth. Exchanging things need not produce any new wealth. Information does not necessarily produce new wealth. A man once commented to another that they could not support their families by washing each other’s cars. It was a simple concept which does not penetrate into the discussion about automating how we do everything. The mere fact of doing is presumed to be enough but it is not. If robots replace workers who are amongst those who buy the goods produced, are the robots going to replace the lost customers?
i assume that the Trump goods, - both for Don and Ivanka - that are made in China will not be affected by tariffs
7
Please explain the math to me. The U.S. is putting a 10% tariff on aluminum imported from China, which accounts for about 15% of our aluminum imports. Yet, according to your article, within days, "domestic companies raised prices on stainless steel anywhere from 15 ro 25 percent." Presumably, the domestic companies' production costs did not change in a few days. The apparent conclusion is that U.S. stainless steel makers are using the Chinese tariffs as an excuse to raise prices.
6
Steel imports have had tariffs placed on them, and steel is different than aluminum.
6
perhaps the silver lining will be Americans affected by the Trump trade policy will wake up and realize they're being swindled by the Don of Fifth Avenue and he will lose support among his base... and other than his core supporters, it look like he has less than no constituency at all.
one superlative Trump has earned, though: even though the competition is very stiff, he is hands down the worst president in US history.
32
US companies operating in China earn hundreds of billions a year. Chinese companies operating in the US earn about $26billion annually. So who benefits more?
4
US companies operating in China see high barriers to entry including forced joint ventures with Chinese companies (so they can steal IP), forced bribes/handouts to local officials, and high tax on earnings.
Moreover, our trade deficit with China is currently $375B, because China slaps large tariffs on imports.
This trade war was started by China, Trump is attempting to level the field, and even Chuck Schumer agrees with the tariffs.
1
So much winning.
The tariffs will not be borne by the administration- their cronies will have an out.
But the rest of America? Belt up, people. We're going to shoulder this. Like the ever-rising deficit, the tax cuts, and all the other economic wins touted by the administration.
Suffering for the "greatness" of our country is patriotic, right?
12
War is a poor choice of words but it attracts attention which was of course the intent of the writer. China has taken America intellectual property for decades as we sat idley by and did nothing. China has some of the worst civil rights policies in the world, one with such pollution citizens care barely breathe and one which has placed tariffs on all imports for decades.
I've done business in China and the government is in total control so it should come as no surprise, they will bluster and puff up their chest just as much as Trump or more.
I rarely agree with his tactics or ideas but in this case we have to make a stand because if we don;t it willonly become worse for our citizens.
It is also important to understand that while our manufacturing is held to high stanrdards and an EPA, China is not. From boats turned away at the port of Seatlle full of Walmart merchandise including and entire ship filled with shoes for kids from 4-10 years old containing toxic levels of lead to another with radioactive merchandise. I'm not sure we are doing any disservice to citizens of our country but rather standing up for them.
4
So to be clear, you support escalating trade in support of better civil rights in China? Such nonsense.
What kinds of children's shoes have lead in them?
1
EPA????!!! Have you been paying attention since Trump took over and made Pruitt (who is gone thankfully) head of the EPA???
2
Good! China is not going to negotiate away from their current position unless that negotiation will make them better off. No one makes a change unless it is in their best interests. Actions here will speak and create the motivation to come to the table and negotiate an agreement. Tick tock. My estimate is that this will come to the negotiation table within six months and then the NYSE will increase another 10 percent within a few months of the negotiated agreement.
1
Once upon a time I recall a Republican Party that stood for economic principles like open trade. Instead they’ve hitched their wagons to this corrupt businessman who was the king of bankruptcies. Frankly, all of the Walmart-shopping, manufacturing and agricultural Trump voters are reaping what they sewed in 2016...and hopefully the spineless Republican Party who won’t hold Trump accountable will join them in November.
10
There is a difference between mere "open trade" and "fair trade." If China imports a car to the US, it pays a 2.5% tariff. If we import a car to China, we pay 25%. What is fair about that? This trade adjustment is long overdue.
1
Both GM and Ford are in China. But I guess you already knew that, right? Just like you know that Toyota’s largest plant in the world is located in Kentucky.
It must be wonderful to live a fact free life.
Taken collectively, TRUMP Administration policies only make sense when you take into account that Putin is pulling the strings. Making our little marionette contort and dance to the amazement of those who feed at the trough of greed, bigotry, and privilege.
Step right up, ladies and gentlemen, and feast your eyes on the nicest, smartest, least racist, puppet-president the world has ever known. Not only will this "stable genius" Make America Great Again....he plans on taking the rest of the world with him. So...step right up. (After a while, you won't even see the strings.) Watch! as a piece of wood transforms into a Real Live Boy! Our Very Owned...Republican-Pinocchio.
The real deal is that America as a country and as an idea is being methodically dismantled and disproved.
We are not equal.
We are not free.
We are not brave.
We are terrorizing citizens!
We are polluting our environment!
We are attacking our allies!
We are insulting our friends!
We are taxing the world economy!
We are locking up children in cages!
Imagine how much greater America will be next year! (With friends like Putin and Kim, we need not fear enemies like May, Merkel, Macron, and Trudeau)
Good job, GOP!
If this is what you call winning, no wonder you hated President Obama so much.
E Pluribus Unum, anyone?
22
Trump/GOP is destroying everything good that was America. Vote out GOP for any hope of change. Ray Sipe
19
The Extreme Right is pulling the pendulum back so far, I don't know that they're prepared for the momentum of the reverse swing back to the Extreme Left that is surely coming. Neither of these extremes appears to understand economics, unfortunately. The Rise of Chinese economic power (and perhaps a degree of hegemony) may be coming sooner than we think. But this isn't the way to curb its authoritarian tendencies.
3
Though there is both substantive and tactical disagreement in the inefficient economic and trade group in the White House, a probable outcome of this trade war with China is that the US will lose. President Xi is taking the long view and being president for life he is able to gain the upper hand given that the TPP is no longer under American tutelage.
This China trade war together with the trade war with US allies will cause upheaval and unnecessary suffering on many levels, including questioning the present global (dis)order. Times seem to emerge that demand some serious radical thinking, that would include dealing strongly with the looming climate catastrophe.
The conceptual, institutional, ethical and strategic dimensions of new world order are presented in Verhagen 2012 "The Tierra Solution: Resolving the climate crisis through monetary transformation" where a carbon-based international monetary system is to replace the unjust, unsustainable and, therefore, unstable international monetary system with the introduction of a carbon monetary standard of a specific tonnage of CO2e per person. Cf. www.timun.net
An outstanding climate specialist and noted economics author declared: “The further into the global warming area we go, the more physics and politics narrows our possible paths of action. Here’s a very cogent and well-argued account of one of the remaining possibilities.” Bill McKibben, May 17, 2011
7
Presumably our oligarchs see some benefit in this, else they would not permit it. The rest of us as usual will just have to suck it up.
5
You presume an informal mechanism of control that supersedes the formal ones of government and publicly operated private ones that is far more powerful and effective than those formal ones. Why would you think that? Are these oligarchs not humans, too? There are corrupt influences affecting our government but citizens are not participating unless they feel impelled to do so. In the system that exists, those who show up decide.
cut to the chase: Trump is a NY operator and knows that to bulldoze his way forward, its necessary to schmere a few palms. that was the tax cut, aka a license from the moneyed and powerful to push his idiotic schemes for a while longer.
ultimately, the bought off power centers will realize Trump's antics are no longer in their interests and they will turn against him, as is already beginning to happen; the lower level true believers have different motives and will hang onto their red caps longer.
but by then, Trump will start a war.
1
The world appears to in an endless pursuit of increasing growth. Why as a society are we unable to be content with stability? Perhaps, we need more hardship to be grateful and remember how hard the generations before us worked to make America great.
6
Here we are betting our economic future under the direction of an often bankrupt reality T.V. host, an elderly billionaire who is known as "the king of bankruptcy" and a T.V. commentator who seems way over his head. What could possibly go wrong?
27
What a hypocrite! Goes on & on about helping american companies & bringing businesses back to America from overseas but is having his 2020 flags made in China? He starts a trade war believing that these countries would just bow down & kiss the ground he is standing on. Will he just shut down the imports & exports to please his base? He needs to bring his businesses back to America. If he can't abide by his own policies, then he needs to be voted out. He needs to put tariffs on his clothing, flags, whatever he is having Made in China & Ivanka's products Made in China. Of course, China could cancel all trump trademarks & put taxes & tariffs on their items to make a point. Hey China tax & tariff trump right out of your country. Do America a good turn for once.
16
Tariffs ; rage; hate;ridicule;corruption;racism; sexism; ;taxscam.; higher health costs; immigration conflict;higher prescription prices;wage stagnation. TrumpAmerica has it all. Trump dragging us into his cesspool. Vote out GOP for any hope of change. Ray Sipe
14
...and yet no tariffs (taxes) on Ivankas stuff?
Come on congress, reel in this idiotic administration.
16
We are working from the assumption that trump wants to improve the economy and from this perspective nothing he does makes sense. What he wants is to destroy government and the rule of law so he can increase his power and wealth unimpeded.
25
"A trade war between the world's two largest economies officially began..." This trade war didn't just begin all by itself, as the use of the passive voice would suggest. Trump said he would start one, boasted about it, single-handedly set tariffs and refused to heed the advice of any economist with a brain in or out of this administration. This trade war is Trump's and Trump's alone. The use of the passive voice is deliberately misleading. And dangerous.
21
We are going to be very poor and lonely.
We were the leader of the free world. Then, Mr. Trump's climate denial made us a world perceived irrelevance.
Now, Mr. Trump's tariffs have turned us into a world perceived danger.
Not everyone is unhappy about this. Mr. Putin is quite glad.
30
It's only a matter of time (in fact it may already be happening) that Walmart will need to raise prices because of Trump's tariffs. Of course, Walmart will bend-over-backwards to come up with some excuses other than say the truth, that the price increases were caused by Trump.
I would think a lot of Trump voters shop at Walmart. We'll see how they rationalize the increased costs.
15
We already know how they'll rationalize it, don't we? I mean, he wore that tan suit after all. It MUST be Obama's fault. /s
3
I doubt those Trump voters who are shopping at Walmart will complain too much about the cheap Chinese nick-nacks costing more when there is a surge in demand for manufacturing and trucking jobs. We need jobs that can sustain a family on a single income and revitalize towns outside of the tech bubble on the coasts. Perhaps then, these voters can afford to shop at whole foods and sneer at others.
1
This perception that "elites" look down upon the Red states may be overplayed. But painting red states as the victims of blue states certainly has smell of a political tactic.
We need structural job reform in America. Other OECD nations spend multiple times the percentage of GDP that we do on job retraining alone. Clinging to the jobs of the past is not the way forward.
1
To increase American manufacturing, and lessen our trade deficit, lower the cost to businesses that manufacture products, by progressively over 5-10 years, establishing a Medicare for All healthcare system, not increasing tariffs which will put the world’s economy into recession. Germany’s economy is based on National Healthcare System and government sponsored college or trade school. Germany exports more manufactured goods than the US each year.
13
The consequences of this ill-conceived war will be dire for the state of SC. Our manufacturing base consists of foreign owned businesses, such as, Michelin, BMW, Toyota, and the associated businesses that have popped up in response to their investments. There will be jobs lost, and all the other 'unintended consequences'. I am not prone to belief in conspiracy theory, however, it makes me wonder about the motives behind Trump's moves. In particular, his cozy relationship with Vladimir Putin and other authoritarian regimes. I feel as though mine is a voice in a sycophantic population that runs contrary to the norm in this state. I wouldn't be surprised if to find myself on a 'list'. However, I am a patriot to the ideals of a democratic republic. My country often feels like a sickening morass of hate & xenophobia. I don't understand the logic of supporting Trump & his ilk. The man was selected, not elected and doesn't deserve the deference of his supporters. I cannot call him Mr. or President.
25
Very good post, thank you. However, for the life of me why does your state vote the way it does? You’d think all of those workers would know where their interests lie. What did they think was going to happen by electing this dude and members of congress?
3
Businesses here are removing ‘Made in America’ labels from products due to the growing boycott.
5
People like me are shopping with a list of US brand names to avoid: Hersheys, Folgers, and others.
Grocery stores here label produce with country of origin (zucchini from Mexico, lemons from South Africa, etc.) to make strategic shopping easier.
Removing "Made in America" labels will go only so far in slowing the boycott of US goods.
We are not playing nice any more. Gratuitous insults, threats and tariffs imposed for fake reasons result in retaliation.
Don't expect us to return to playing nice when the dust settles. Many of the "replacement goods" are as good as, or better than, the US ones.
But, the big, bottom line is: Canada can no longer trust the US government to be fair or consistent. Sadly, we are only neighbors, and NOT friends.
10
Hey Kelly - Most Hershey chocolate now gets produced in Mexico. So good luck damaging Mexico. Such are the intricacies of international trade.
It is clear, that Trump and Navaro think that the balance of trade means very directly that the trade deficit country is losing and the trade surplus country is winning. In actuality, the deficit country has greater wealth and the surplus country less wealth. Trade deficit/surplus is a manifestation of a wealth gradient between countries. Trade deficit/surplus harms no one.
This is a completely stupid and another unnecessary war provoked by the USA and all of the world will pay for it. This is a completely unnecessary conflict which will be lose-lose for all involved. Did Putin tell Trump to do this to hurt the USA?
17
7/6/2018 the beginning of our next recession thanks Donnie.
8
Tariffs is taxation without representation and an imposed tax that bypasses Congress. This is what dictators want.
Tariffs also give corporations the fog and smoke needed to sneak in their increases to their products and then say it is all due to tariffs. If something costs $100 and the tariff increase is 30 percent, companies will charge $140 instead and Americans will be too dumb and lazy to do the math. Corporate CEOs know this.
Trump was handed a strong and growing economy that bounced back from a Republican created financial crisis and it will go back to a recession after it has been ruined.
The Democrats in office have been nothing more than wussies with no platform whatsoever to take down Trump and Republican Congress. Trump has done everything that would get a Democratic President impeached and yet nothing.
The Democratic Party leadership is betting on Mueller to do the work for them and therein is the problem.
17
The backward USA utterly lacks the introspection to figure out why it is poor place to make things.
8
so much wisdom in so few words. bravo!
1
The real impact for most people will be when the price increases hit the aisles of the local WalMart and Dollar stores. Then the folks who haven’t paid much attention will sit up and take notice and it should be just in time for the mid-terms. This combined with the manufacturers who have to raise prices thanks to the tariffs on goods for Canada, Mexico and the EU should make for what the Chinese call “interesting times”.
9
AS they Harley employees have taught us, the will blame Obama or the democracts. After all, Trump is a "clever business man" (I really don't know how people who say this can overlook the multiple bankruptcies, they never seem to explain that.
Since he is such a good business man, any such changes won't be blamed on him.
2
I’m a bit confused. Maybe I’m just ignorant, but they quote values for the imposed tariffs (let’s take the $34 billion value).
This is the value of GOODS that the tariff covers, but what are the TARIFF costs? How would they compare to the current situation? I fee like this article doesn’t really give me the bottom line.
1
The bottom line is that trade wars create a few 'winners' at great cost to the entire economy and they hurt most people as the side effects kick in and make the economic patient very ill with higher import costs, higher consumer prices and shrunken American manufacturing.
Enjoy.
8
"..officially began on Friday morning "
The trade war started years ago and the US has already lost. How else to explain the deficit?
4
Through economics.
Deficit spending can be on domestic programs, like tax cuts for the wealthy.
International trade, contrary to popular belief, is not a zero sum game.
5
Trump has a very clear plan:
Step 1 - Bluster very loudly and create buzz about international trade, especially with China, to scapegoat others and distract away from the utter mismanagement we're dealing with back home, via a GOP led government.
Step 2 - Get others, including China, Canada, the EU talking about trade.
Step 3 - Back down in another month or so after no real changes other than getting everyone riled up, but declare victory and declare that you were "standing up for and fighting for America."
Step 4 - Hold numerous rallies falsely claiming that the tariffs were successful, and that they brought China, Canada, the EU etc to the negotiating table.
Step 5 - Blame immigrants, the poor, democrats, minorities etc for any ensuing or ongoing economic problems.
23
Probably right, though with lasting damage to close alliances. I now check the ‘made in’ labels, though businesses have started to remove ‘Made in America’ labels.
7
The real problem is the 600 Billion trade deficit and export of millions of American jobs. No other country would allow this to continue.
Now that we have their attention the US can negotiate a real free and fair trade deal. This is the beginning not the end.
The irony is that the winners will be American workers and foreign citizens who will soon have access to competitive American goods and services!
6
That sounds like a rational plan but it has two flaws: 1) I'm not sure that Trump is rational, and 2) China will not play fair even after renegotiating.
2
I have news for you. American good are not competitive because people in other countries don't want to buy them, that won't change. For instance, American cars are inferior to european, japanese, and korean cars (and because of their size, they are downright useless in many of those countries) and with the new reduced emission standards will not be bought by foreign citizens at all.Same goes for American electronics (other than Apple) and machinery.
And almost all economists agree that a trade deficit per se is no issue.
3
Just two months ago, Trump was publicly mourning potential job losses at China's telecom giant, which is guilty of stealing countless US trade secrets. Then he removed sanctions from them in exchange for Chinese investment in some of his Asian properties. Open your eyes. And if you don't want to be viewed as a brainwashed cultist, you may want to change your username while you are at it.
4
WAR is the word of choice in America's dictionary when the nation faces any challenge, domestically and internationally.
Vietnam war, the war on drugs, the war on poverty, the war on terror and now the trade war.
The use of the word war is puzzling for one simple reason.
When was the last war won by the US? after all, even in the military arena, WWII was won in the Russian front.
10
Exactly right. The US hasn't won any wars of significance in more than a half century. The cost?
3
So let me get this straight. Trump raises tariffs on Chinese goods that end up in the United States. China was used by a majority of American manufacturers to save money by outsourcing parts and completing merchandise there. American companies then made tons of money by selling for example, brand name shirts costing $6.00 in China for $ $100.00 in the USA. So unless these American companies agree to make less than 1000% profit, and decide that $800% profit is OK, then Americans are going to be hit in their wallets. Of course, all of these American companies are going to open plants in the USA to save the 25%A tariffs on Chinese-made parts and goods-NOT! When are these American companies going to start lobbying their paid congresspeople and senators to do something?
7
Just like all these companies were able to give all their employees raises after the tax cut. What a crock.
5
The cost to American industries and consumers is the first of two negative impacts caused by the tariffs. The second will be when Trump is out (assuming republicans in Congress and the Supreme Court have not declared him president for life) and the US has to bargain with China, Europe, Canada and other countries to remove the tariffs. These countries will likely want something in return for helping the US to fix its damaged trading policies.
6
There is no war without the loss of life or money or both. Trade war is not different.
America and its workers has been unfairly traded for too long. It is easy to sell to America but very hard to sell to China and many countries. In addition, the intellectual thef is unbearable to Anerican companies.
Some one must have the courage to stop the unfair trade and intellectual thef. No pain, no gain.
Do not let your personal hate of Trump affects your evaluation about Trump's tariff war. President Bush 1, 2, Clinton, Obama did nothing or just a little. Let Trump does it. Give him time and hang on in a short time to get a permanent fair trade.
3
Have you forgotten the TPP?
2
Methinks before this is over, Commander-in-Chief Bone Spur would rather have fallen to STDs than to Chinese tariffs.
Advice from the past about crossing railroad tracks seems relevant - STOP, LOOK, LISTEN.
Maybe DUCK AND COVER will come into play, too.
Leadership, always about leadership.
5
Bad news: I may have to pay more for my next I-phone.
Good news: Trump is finally doing something about climate change.
1
A tough trade negotiation for a change is not a trade war.
1
Negotiations? Did I miss that part?
6
$34 billion in new, what are they called, "tariffs"? Call it what it is -- $34 billion in new taxes. Straight from the president who promised to lower taxes. Anyone who thinks the free trade policies of the previous four presidential administrations had nothing to do with controlling inflation is in for a rude awakening.
18
They say the President of the United States is the most powerful person on Earth. Many nations have looked to the US as a protector, a safe investment and an economic engine. But, by one stroke of a pen, by Trump, has shown how one man could send most of the world's economy into a possible recession, that could be worse than the Great Recession. Something, much of the world, and this country, is still reeling from.
This abuse of power, by creating a trade war, between China, and our allies, is going to end miserably for everyone. For the US, a deep recession, that this time the government can't bail "too big to fail" or Wall Street out of. Thank the tax cuts for that. That will mean cutting almost all domestic spending, except the Pentagon.
As people lose their savings, their jobs, their homes, their livelihood, and pay much higher prices, for so little, Trump will need the military to impose strict controls.
Maybe that is is path to autocracy, and make the US like the "1984" world.
Meanwhile, our do nothing Congress has remained silent, as have both political parties. Mainly because they are controlled by the same interests that control Trump.
They want for the US, that China has. A single party state the oligarchs control everything; autocracy with a capitalist face.
13
but her emails
16
and Obama's birth certificate.
They use to say "most powerful person on earth" now they just laugh. He has destroyed the reputation & respect this country once garnered from the world. Can't wait for the trump baby blimp over London!!! (Hope he doesn't change his mind & not go.)
3
Forget the tariffs, the new Republican tax law will be making this great for everyone! This is going to be a bigly success as the world comes crawling to trumps feet begging and groveling for any little handout the great negotiator will give them.
4
The incredible irony of a person who built his hotels using Chinese steel now imposing tariffs on Chinese steel. What's that: I've got mine, the rest of you Americans can stuff it so I can look tough and toss rotten meat to my idiotic and purblind base?
21
It IS time to penalize China for their less than scrupulous trade practices, stealing intellectual property, trying to manipulate stocks... and this is one small attempt to do so - maybe. Let's see China owns Smithfield which is America's largest pork producer, so raising import taxes on pork seems odd. Taxing autos? The NY Times reported in "Not-so-secret weapon: GM's Chinese engines" that engines for many GM cars and SUVs are made in China, these of course for the Chinese market. Are the trade sanctions more political bluster or a real trade war? I think the former.
3
Right, you got it. Trade wars are not really trade wars when we are in a global market place. They are just excess taxes that cause chaos and will slow economic growth for everybody. Another great policy brought to you by the Republicans.
3
As I understand it, tariffs are meant to shut down imports, which means American factories with American workers will now make my shirts, which will cost three times as much, and we will return to the 1950's when basic things cost a lot, so you had fewer shirts, bad razor blades, refrigerators and automobiles because your only choices were American, and American manufacturers found it more profitable to make inferior products when there was no competition. We also had whites only toilets and sex was a dirty word. So now, we are boats beating ceaselessly against the current, borne back relentlessly to the past.
9
Amazing GATSBY quote - but I don't see us devolving re: products.
You could at least credit F. Scott Fitzgerald for your last line. He wrote it first, and best.
I just bought a bunch of US made tee shirts online for $10 each; Bayside brand, union made in the continental US, and much higher quality than big box store junk. Americans don't even grasp how we've been stabbed in the back by big retail chains that refuse to carry decent American products because it would cut into their triple digit markups.
1
Just remember, trade wars are easy to win. The Donald said so.
7
Bet most of the people quoted complaining about this and their employees voted for Trump. Reap what you sow.
3
Trump always claims that it is his personal chemistry with the other world leaders that makes him so effective as POTUS. He wined and dined President Xi at Mar-a-Lago and claimed they had a great relationship. So instead of a trade war, why isn't Trump using his personal bond with Xi to negotiate and get a great deal for American business? Isn't he the best deal maker in all history?
Trump then meets Kim Jong Un and declares he has the most wonderful relationship with Kim Jong-Un based upon their personal bonding even though they spoke for less than 2 hours.
Great relationships usually take longer than a cup of tea to brew.
Now Trump will be heading to Finland for that personal charm tour with Putin. Once again claims of intimate understanding and mutual respect based upon mere minutes. Meetings held in secret with no accountability whatsoever.
This genius businessman and dealmaker is playing us all for fools.
We have yet to see one, one direct result of his personal magnetism. He is simply a big bully thrashing in the wind hoping someone will notice.
3
Never imagined that I would ever say this, but "You go China"! Open up the eyes of the Fake President's base, the bamboozled, sad marks of his greatest, most amazing , tremendous, successful con job ever.
10
There are millions of us who feel the same way.
We all must vote in Nov. to start putting the brakes on this toxic president.
Maybe the Mueller investigation will beat us to it!
So Sad!
4
For all of you pointing fingers at DJT, look in the mirror and ask yourselves this question: If Bernie Sanders had done this exact same thing, as he promised he would, would you have the same outrage? Would you still call this "white nationalism"? Or would you be parading about these tariffs in defense of the working class hero?
5
Bernie did want tariffs to even the trade playing field, but not in conjunction with huge corporate tax cuts.
1
It is highly likely that cooler heads may have prevailed. Bernie Sanders would have intelligent advice and he would listen to it. trump won't even listen to the advice of his own advisors.
3
The difficulty with the questions of “If Bernie…” or “If Hilary” is that there is no context. I don’t know what a Bernie or Hilary presidency would look like at this point, who would be occupying other roles in the White House, what the current subtleties of international relations would look like. I don’t know enough about trade to assess whether there’s some good reason to be engaging with China re tariffs. What I do know, based on Trump’s behavior, tweets, etc., is that he has no sense of diplomacy or ability to engage nuances of international and domestic issues in a way that considers global well being as a value. One can’t reduce the quality of leadership down to a single action and leave out the way in which that action is negotiated and how it fits the overall approach to leadership . Based on his behavior so far, nothing has led me to re-consider my early assessment that this man is unfit for office.
6
The US is about to find out what happens when you lose a war.
Having a president who thinks its about playing chicken, and is a coward, is unlikely to help your cause.
6
Again, Trump has to create a tragedy so that he "alone can fix it". By avoiding taking the real issues of China holding American companies hostage for their technology to the WTO (which he disdains, as he does all cooperative organizations), he is going to hurt American consumers...the irony of which is that his supporters are the ones that will be hurt the worst, but will not understand that he alone is responsible. The ego and narcissism of this man is creating worldwide havoc. He needs to be caged.
6
A timely CNN headline - "Chinese company making Trump 2020 flags despite trade fight"
6
Bernie Sanders on tariffs from a press release from 2016 from from berniesanders.com:
"Sanders will also impose countervailing tariffs on imports from China and Japan until they stop dumping steel into the United States and stop manipulating their currencies."
Koch brothers on tariffs from The NYT, June 4:
"The conservative Koch political network said on Monday that it would begin a multimillion-dollar advertising campaign to promote free trade, sharpening a disagreement with President Trump over tariffs..."
To the entire barking chorus of if-Trump-proposed-it-ipso-facto-it-must-be-opposed, thanks for carrying water for the plutocrats. In this case, your obsession with resistance is irony of the most delicious kind.
4
Yes. Bernie did propose tariffs. Just not with masdivr corporate tax cuts.
4
Personally, I don't care who said it or who does it, the policy to slap tariffs on an item to protect your own industry is stupid and short sighted.
3
And not on its allies.
3
Corruption, collusion, bad diplomacy, hypocritical positions, ripping families apart, abetting the nation's enemies and liaisons with prostitutes might not be enough to run The Donald out of his high chair, but his Waterloo might come when his base gets financially hammered by these ridiculous and unwise tariffs. It might be worth the pain for this to happen.
6
Well the Global Supply Chain Highway is full of orange safety cones today.
Lane Closure signs everywhere.
Nothing but brake lights ahead. And wouldn’t you know it – the AM Highway Information channel isn’t working.
Next Exit sixty-miles.
Second thermos of coffee almost gone.
Should have stopped in the Restroom at the gas station.
Oh, oh.
Now we’re down to two lanes.
This is not going to be a good day.
4
You are a great writer, sir. I'm jealous!
Great writing. I'm envious!
With his trade war crippling our economy, Trump has, again, begun dismantling another Obama era achievement — our 8 year old economic recovery. Trump’s protectionist idiocy will soon throw us into a recession.
All the winning. It’s hard to take.
11
This is not a war, this is Trump throwing the U.S. under a bus full of Asians, Europeans, South Americans and Canadians.
7
This is what happens when Donald has even a little time off from playing golf and having ego boost rallies and tries to do some “governing” stuff... Please keep him busy in a safe environment where he can trash and burn everything without hurting others!
1
Hold on isn't this third or fourth trade war this year for the US? EU, Canada, Mexico and now China or did I miss one? Making America great again by getting into a trade brawl with everybody, abusing long standing allies and dinning with dictators!! Way to go Trump USA!!!
5
This what happens when you vote in a degenerate con man with a big ego, no soul and in critical debt to Russian oligarchs. Trump Country will be the first to suffer.
8
It really is awesome how quickly the US is making itself a global pariah by representing itself through Trump.
8
With respect to the Trump electorate ... guess we'll see whether their fealty to bigotry and racism gives way to pain in the pocketbook and wallet.
7
Dont't hold your breath... the GOP has been doing this to them for decades and they still vote Republican.
5
Yeah, I know ... my guess is that bigotry and racism wins.
Remember the TV show, Get Smart? There were two forces at work: Control and Chaos. Trump could play both parts and rename the show, Out of Control and Chaos.
Trump is and apparently always has been at war with everyone and everything. The notable exception is Russia's Putin because the former KGB agent owns him. Trump owes him billions.
The Donald will do anything and everything to stay on page one of newspapers and magazines, no matter what the effects are on our country and the world..
Robert Reich of robertreich.com (terrific site) has excellent insights about who Trump is and what we are facing in his last postings.
8
This might be off the topic, but it is important to point out that under WTO, developing country such as China has its 'lawful' rights to ask foreign companies to 'transfer' its intellectual properties to a new, join venture company ( usually 50-50). Therefore, it is not a pure, 100% transfer, nor it is a theft under this context. This practice make sense because if we don't do that, no developing countries of the rightful mind would allow billions of far more advanced foreign goods to flood into its market, without a single contribution to its labor market. The problem is, we fear if we continue to allow China to grow, we will be off the table soon or later. Yes there are other IP theft, but it appears to be hypocritical if we look at what is going on at the main stage.
4
It has taken decades for capitalists to degrade American manufacturing, textiles, furniture, shoes you name it. It would take decades of careful planning, state sponsored investments and sound trade policies to reverse said damage. I once thought the markets craved stability, business’s just wanted predictability to plan. And yet the cult like support continues. This president can do no wrong, he may be the greatest con of all. Enjoy the next republican recession.
7
Trump is wrong that trade wars are easily won. Trump not only lacks a Plan B, but he lacks a Step 2 for Plan A. Trump is undisciplined, lazy, impulsive, and, above all, narcissistic.
But Trump is right about trade, and we need to give him a chance, just as we would be saying if Sanders were president and were opposed by the Rs, Wall St., and the neoliberal Ds.
US trade policy has long favored the elites (I hesitate even to describe them as US elites) over US wage earners. US policymakers watched as the balance of trade for manufactured goods tilted China's way at the expense of US steel workers, textile workers, furniture makers, and so on. Of course, we enjoy a positive balance of trade with China on services. Deindustrialization left the working class behind, as the growing service industries split into two classes--the elites in finance, securities, law, insurance, etc and the rest in jobs previously held by HS students.
Ult, part of the solution is to restore equity to our tax code and ensure that high income taxpayers pay more and transfer that wealth to the victims of globalization and technology. I don't expect Trump to help with this. But Trump may be able to blow up unfair trade arrangements, incl the calcified WTO. Maybe we would then have a chance to participate in a public discussion of what we want in US trade policy--exactly the opposite of Froman's TPP negotiations, which were confidential except for his repeated discussions with corporate interests.
4
Simply claiming he has the authority to impose tariffs due to "national security" reasons, does not make those claims true. One has to do more than SAY a thing for it to be true. trump seems to think that all he has to do is wave his magic wand (aka his twitter account or his running mouth) in order to do whatever he wants.
Republicans in Congress - where are you? Trade is your responsibility, not trumps, unless, of course, it really is in the interests of national SECURITY.
12
Yes the Republicans are the enablers of the uninformed, immature grifter bully, starting with the Electors who put party over country and defied the clear and wise choice of the American people, who rejected Trump,
Nathan Hale said, "I only regret that I have but one life to give for my country."
The Republicans in Congress aren't being asked to risk their lives---just to risk their re-election, but they aren't even willing to do that for America.
1
Soybeans are no small thing, they are the number 2 US row crop behind corn. Additionally, diesel fuel is one of the main costs to farmers. It is conceivable that farmers will lose money on this years crop. Also, I've read that China is targeting corn alcohol (ethanol), which is the equivalent of targeting corn. US dairy is currently running in the red, now commodity farmers are plenty worried.
Trump is handing the Dem's a nice gift for the midterms.
13
100 years ago, not long really, the U.S. was an agrarian economy. Agriculture remains a very respectable sector in our economy. We depend on it, not just for our own dinner tables, but also for our balance of trade.
Trump is a life long NY City boy. Soybeans? Corn? Hogs? Pffft. I will bet good money that he could not explain the water cycle if his life depended on it, is clueless about the key role played by pollinators, and has no understanding of how farmers depend on immigrant labor for hard hand work in the fields and on dairy farms. That's just for starters. He recently tweeted that lumber grows in fields. What's a forest? Has he ever visited a national park?
Trump's barn storming seduction of rural voters is a particularly ironic and laughable episode in American politics for which we will all pay.
58
Don't depend on immigrant labor and trade with potential enemies for your slim profit margins, or do and take the major risk
How about a list of tariffs charged by China against US goods? Are they higher or lower than "Trumps" tariffs?
5
Not hitting the mark? With disruption in the US and Chinese economies on top of the splintering of NATO and the end of the Paris climate accord I think Putin is hitting exactly the targets he wanted.
34
The real travesty of these tariffs is not only to companies doing business but to the millions/billions of consumers that will be affected all over the world with higher prices coupled with severe and negative ramifications to the global economy. This President who has a personal history of filing bankruptcy will bankrupt the U.S.
19
Despite the collapse of American consumer goods manufacturing, it is still possible to find US made goods (for the few of us that still care) via on line shopping. I will happily turn my back on my local big box stores just as they turned their backs on their US suppliers. In other news, CNN is reporting today that the Trump reelection campaign is swinging into full gear with plenty of cheap Chinese-made MAGA junk. No surprise there; I already knew I cared more about America than Donny and his sweatshop-loving clan.
18
And I should buy American-made because...? To encourage protectionism, nationalism, and overpricing? To give jobs to Trump voters? To support narrow-mindedness and entitlement? Those “middle-class manufacturing jobs” have been gone for a generation. Why haven’t American workers gotten the memo that education and geographical mobility are keys to success in a new economy? I have seen hollowed-out small towns where every second adult is an opioid addict, and yet nearby farms are hiring immigrants because Americans only want the same kind of jobs their daddies had. American consumer goods are junk. I tried to buy American-made cosmetics, only to discover them filled with dubious chemicals. Now I only buy Italian. Ditto with clothing and shoes. And if you can’t make a decent pair of boots or stylish underwear, why should I trust your cars or dishwashers? Globalism has lifted entire nations out of poverty. Compared to this, the tribulations of the Trump country are of minor significance.
209
I rather agree, Mor. I'm old enough to remember when products started coming from Japan and the rest of Asia (not China) started moving into America. Especially in the case of cars, the cars from Japan were clearly better, cheaper, safer, and what the public wanted. Without having to compete, the American auto makers would have continue to make their over-priced, unsafe, gas-guzzling cars. It has always been a tenet of free enterprise that completion makes products better. It appears we no longer believe that.
I do look for the "made in America" and prefer to support American industries. But, I won't by poorly made items no matter who makes them. But there are many, many items I will never be able to buy if I stick to American made objects only.
3
Reporting on Trump's "tariffs" is sophistry.
Let's stop being politically correct and call them Trump's new Taxes.
25
China brought this on with its government-subsidized businesses amassing enormous trade deficits that harm the US long-term. Let’s worry about America’s manufacturing middle class for once. Enough is enough.
4
So what does that mean? Are you saying that American manufacturers do not need to export goods and the retaliatory tariffs will not have an effect? I think that there are many manufacturers that would disagree with this.
To take this plan to its logical end, all trading borders would be closed and each country would produce goods only for domestic consumption. I am not sure that this is a "winning" strategy. Just like people, some countries would eventually work together cooperatively (lets call these trade agreements) and become more effective that the individual.
11
The other thing that has taken effect are my retirement funds. I've lost several points since the trade war talks started. The average citizen's retirement funds have actually profited from a strong global economy.
But, what do the millionaires in Congress and the White House care about the middle class. For decades Republicans have worked to undermine Social Security, something we tax payers paid for, all the while pushing us to put our money into the markets. Unlike Wilbur Ross and the Trump's the average citizen doesn't have the luxury of insider trading or profiteering off their dealings.
32
My retirement funds have grown like crazy since Trump's election. This is not a good argument for Democrats.
I've heard that from a lot people, was that before he announce the trade war? Because funds with any investments in S&P500 - pretty much all the top 10 retirement funds and 401ks have taken hits. All forecasts if a full blown trade war happens it will ripple across all funds that have investments in goods and manufacturing.
It's not a Democrat or Republican issue, it's fundamental economics.
Excluding World War I, what could go wrong with a rise in populism?
Other than World War II, would we ever make the same mistake?
We’d always be smart enough to avoid World War III, right?
17
America seeing itself as a victim of unfair trade is... Well, kinda ironic. Granted, China's current trade practices have been not on the level. HOWEVER... China is coming from a huge historical deficit. Yes, some of it's problems have been self-inflicted. Others were not. The historical fact is that China was thoroughly gutted by imperialistic (Western) powers, including the USA. It's taken a herculean effort on their part to recover. THIS is the historical context; simply viewing America as a 'victim' is simplistic and self serving to the extreme.
14
While China did suffer under western imperialism in the first half of the 20th century, I'm going to call us even, by virtue of the fact that we were indispensable in freeing them from the brutal rule of Imperial Japan in 1945. Now they need to stop stealing our IP. We don't owe them our IP.
3
Reply to MG in Toronto- if it weren’t for Western Imperialism, where else would China steal all its idea from?
1
If there’s a trade war between the U.S. and China, don’t blame Donald Trump: China started it long before he became president. Even free traders and internationalists agree China’s predatory trade practices—which include forcing U.S. business to transfer valuable technology to Chinese firms and restricting access to Chinese markets—are undermining both its partners and the trading system.
6
Dan,
China would and has taken advantage wherever it could, and has accomplished amazing things. Somehow, they seem to be able to effectively manage trade well.
What Trump is accusing them of, in his words, are poorly negotiated and managed trade by the US.(!?)
But, that's because we see a bigger global picture - raising all boats on a path to global prosperity and the resulting peace it engenders.
In Trump's world it's just us against them. A simple trade by trade, deficit by deficit, war by war decision process. Our role as a global cop, farmer, trade partner are in his view unnecessary and an anathema to the US winning.
Unfortunately he's right, AND he's wrong. Attempting to fix anything or everything on a case by case basis depends on an entire US government becoming as narrowly focused as he is and that unfortunately isn't possible. And, his claims of strategic security are only going to stretch so far.
In the end, other than war, we aren't very good at simplistic self centered governance. Nor should we be.
1
My suggestion is that we look more closely at where products are made. Not that it matters but I still end up having products (clothing, sheets and towels, china … haha) with China on the label and not many Made in USA.
Not sure why we don't sell more to our own people, oh, maybe we don't have as much disposable income as we need. The laws of economics are probably not based on science but rather on theology (not a science).
I know it costs money to advertise but how else are we to know where to buy? I know enough about cooking so I don't have to rely on delivery, but other than the next few months, we can't rely on buying local, especially if you want vegetarian.
1
Many workers in this country, sans the corporate executive and Wall Street croupier, have experienced wage stagnation for years as their employers need to satiate the thirst of Wall Street for more and bigger returns on investment resulting in little, if any increases, in disposable income which results in us looking for the lowest prices. Well, the retailers understood and off they went to the lands of lower manufacturing costs and were able to charge a lower price and experience higher profit margins, and Wall Street cheered and demanded more. So, the cycle began of "off-shore" manufacturing.
Along comes a reality show and failed businessman, one who makes bombastic promises, keeps those promises regardless of violating the law of unintended consequences. That will be the fallout of these trade wars-we all will suffer.
My belief is the leaders of these other countries now understand Trump is not an economist, diplomat, grand leader or a revered businessman and may just take the trade wars as far as they can.
And that rosy jobs report this morning? That may be dashed as Trump takes us to the brink of economic disaster.
14
In addition this all began when Reagan lowered the tax rate. Executives realized that if they could lower their costs they could bring home bigger pay checks. Moving manufacturing off shore was seen as an easy way to increase profits. Remember capitalism has no morals or conscience
1
And these replies by "Dan" and "John" are replies, how? Not that I do not approve of replies and the info need not be new info…I suppose the story is vast and varied.
Companies in USA have already begun to lose business, some have been able to avoid downsizing, per se, and no employment opportunity is necessarily guaranteed indefinitely.
As for getting income increases, I had reached the maximum wage 5 years before I retired in 2006 and my income since has remained the same except it has fallen in terms of median.
The tariffs have not been levied only against targeted countries and they have hit our partners as well as adversaries, but is there really a difference anymore?
The absurdity that Republicans voted for a reality TV show host who spews forth almost nothing but verifiable lies, a walking caricature so farcical that a lot of over-the-top 80s movie villains were based on him, whose opinions seem to have ossified in the 1980s and treats countries accordingly, back when he probably could have gotten away with it but now will earn him nothing but scorn and derision, has instigated a trade war that will hurt people who voted for him the most...
If I were writing a book about this 10 years ago, it would have been panned as unrealistic pap. Unfortunately, now we're living it. Reality really is stranger than fiction.
49
As if we needed more proof the donald never attended a single class, nor opened a single text-book, at Wharton.
199
Bone spurs, don't ya know.
1
I'm still struggling to understand how any of this is actually good for the United States.
What I do understand - clearly - is how depressing stock prices could be good for Donald Trump and his cronies, who can now swoop in and buy shares at reduced prices. Once he leaves office and the markets rebound, The Donald will stand to make billions.
I guess in the end, that's what this is all about. It's insider trading at its highest level.
68
You forgot .. they can also short the stocks on their way down.
4
The market makers at the top will be shorting stocks on the way down as well. My guess is very specifically on the companies (eg Harley) and sectors they know they are damaging.
At this point, this is what the "economic advisors" are actually doing: coaching Agent Orange on how to profit via his own mismanagement.
Little Orange finger prints all over this impending disaster. Hoping the tRump cult gets the worst of it, whether they properly attribute the cause or not. (Probably not.)
What comes next:
Business and Republican leaders show Trump the damage his tariffs are doing to Americans.
Trump gets minuscule concessions from China, not even beginning to address the real issues (like IP theft), and Ivanka gets more trademarks from China.
Trump declares that his tariffs were a total victory.
10
If we wanted to starve China into submission. we would cut off their food and animal feed. Instead. they cut themselves off. Because it is commonly thought that the tariffs are temporary as part of the negotiation process, any long term replacement of these commodity products will occur only after the tariffs remain in place for years.
Pretty foolish to retaliate by raising the cost of feeding oneself
3
This makes no sense. Starve China into submitting to what? “OK, we’ll raise the prices on our steel and aluminum so your expensive steel and aluminum are more competitive”? Hardly. And you don’t think tariffs on steel and aluminum will filter down to increasing the cost of just about everything in this country including food?
Instead of imposing tariffs, the “richest country in the world” should use its technological and research prowess to produce better, cheaper products to compete in the global economy. But Trump only knows playground antics in business: stamp your foot, take your ball and leave. And of course, the game goes on anyway with other players moving in to fill the void left by his childish approach to a very complicated global economy.
108
Perhaps the Chinese aren't the fools you believe them to be in raising the costs to feed itself.
This country is not the only country that exports feed and animal products to China...
10
Is there no end to the madness at the White House?
30
It's too bad the entire cost of Trump's "reign of error" isn't going to fall solely on the shoulders of those who voted for the lying racist. However, due to the intelligence and fairness of the leaders of other countries, I think we are going to find that the majority of it does. And that makes me extremely happy, because I believe that the moral bankruptcy of those who put him in office deserve the financial bankruptcy that should accompany it.
165
Trump could care less if this results in a recession, global or national. Recall that he boasted about how he (and it turns out, Sean Hannity) made out like bandits in the Bush recession. No, as usual, this is Trump doing the only thing he knows how to do: disrupt, upset, destroy, divide, and create chaos in order to address some pathological ego thing of his own. Donald Trump is a toxic person. The real stumper for me is how he can appeal to so many people. That is what worries me, that we have so broken down culturally and civilly that not only is someone like Trump not rejected outright for his boorishness, his criminality, his pathological lying, his shocking lack of civility, tact, and diplomacy, but that he is actually cheered because of those things. Trump-as-president is a symptom of a big problem. He is not the disease.
109
Economy 101:
In economies that are not perfectly egalitarian, i.e. in all economies, median voters’ capital/labour endowment is lower than the relative capital/labour endowment of the
overall economy (Alesina and Rodrik, 1994). Mayer (1984) has shown that in this case and if trade is of the Heckscher-Ohlin type, median voters will be in favour of positive tariffs in countries that import labour-intensive goods, i.e. industrialized countries
eport)
ttps://www.wto.org/english/res_e/booksp_e/anrep_e/wtr08-2e_e.pd
The trade war is the predictable outcome of globalization, whose promoters (naotably Krugman) failed to understand the distributional consequences analyzed by Autor and Dorn (The China Syndrome: Local Labor Market Effects of Import Competition in the United States)
Nor are trade wars new. The US has conducted them on agricultural goods since 1920. (As has Canada, with her
297% tariff on US butter - long before Trump)
What is new, but was entirely predictable, that it would spread from agricultural goods to manufactured goods.
The reasons are explained by Drucker ( Next Society)
Classical Macro has gotten this very wrong, as it as Stiglitz pointed out (2018) it failed to use the correct micro inputs on the behaviour of families and factories. Stiglitz, correctly asks for more input from behavioural economist.
I would add that macro economist also ought to study management theory, to understand the decision making process of factories
2
FYI-let the butter go. The US poisons our cows with hormones. Canadian kids are healthier because Canadians don't want it. If you want to mess with your kids hormones and health, then you have pay for it.
2
Any responsible president would sit down with his advisers and discuss the pros and cons of a major policy decision that could affect not only American businesses and workers but the economy and currency ramifications around the world. The president is a bull in a china shop, wrecking and destroying everything with no thought or care about how his actions hurt others. This president has done nothing but pick fights with everybody since his election. When does this madness end?
31
In November, one sincerely hopes.
3
Never underestimate the role of stupidity in history.
55
In the words of my old history teacher "stupidity is a factor"
3
These inane, irresponsible and narcissistic actions by Trump may very well bring on a recession.
In a strange way I would welcome that.
A recession would significantly hurt many people here and abroad but the shock and pain of a recession may be the only thing that will jolt enablers and supporters of Trump to open their eyes and finally recognize reality.
Ultimately it may be the only way to get rid of this Republican administration and the Republican Congress so that American democracy may be rescued and world order restored.
16
His followers will blame any recession on Hillary, on Obama and on the "Democrat" [sic] party.
I would like to refrain from comment for a while. Xi Jin-ping, who self-proclaimed not possessing the warlike DNA, is a sort of war criminals who, among the other things, force the pigs to run out their quarters at their entrance, as stating an old Asian proverb.
1
Trump will stop it in a month, say he has won concessions that the Democrats never had the guts to pursue, and that America keeps on winning. Fox will back him up. Times will write an editorial about the damage left in the wake of his foolishness. Trump will have a rally in soybean country and those in attendance will chant "lock her up."
160
I give it a week.
So the great deal maker is unable to negotiate better trade deals? So his inability to do so leads him to essentially go to Defcon 1 and impose ridiculous taxes that will only hurt our economy and the very people in the US he vowed to help.
Any good salesperson knows that going to such extremes is a last measure, a threat one would use to get what you really want. This is negotiating 101
Speaks volumes about his (lack) of intelligence.
8
How will this affect Ivanka's newly acquired Chinese trademarks?
5
Perhaps those overpriced baubles and trinkets designed to have the witless masses oooh and aaaah over the name on the product rather than the product are exempt from the tariffs. After all, a family that grifts together....
2
"For now, it is unclear how — or whether — the trade war might conclude."
What we do know though is, the citizens of all countries involved with these stupid, nonsensical trades wars will suffer financially, some will even go hungry.
None of this makes any sense, but then nothing President Trump does either.
Don't forget to vote.
14
Be careful what you wish for.....
This is crazy! Nothing good will come out of these thoughtless trade policies. Prices will go up and many will lose jobs, just to satisfy Donald Trump's bloated ego.
3
China has put tariffs on everything nonChinese since day 1. One of these tariffs is on people. There have been millions and millions of Chinese-Americans but never even 1 American-Chinese says Harvard's Eric Liu. Any American allowed to do business in China must take a Chinese partner whose #1 job is to steal from the American and after the Chinese partner can run the business independently, the American is ousted. Fake Apple stores, fake Nike stores, fake smiles to greet the savages at the airport ('savage' ye3man2 is the word for Westerner, taught to Chinese kids before they can even read). Americans endure all this to fund Chinese aircraft carriers, island building, conquest. Maybe Trump's tariff will wake Chinese up to the fact that the savage can do business elsewhere.
10
ABC, I agree with you. All those other ignoramus idiots criticize President Trump’s policies just for the sake of criticism, but they’ve never lived and worked in China before as a U.S. expat. They’ve never been to a grocery store in Shanghai where a box of Honeynut Cheerios cost $10, a bottle of Oceanspray cranberry juice cost $15, a bottle of cheap Sutter Home wine cost $60 and a pint of Haagen-daaz ice cream is in a locked freezer selling for $16. Sure European, New Zealand, Chilean, wines, meats, cheeses, produce sold in China are also taxed, but Chinese tacks on the highest tariffs for “Made in the USA” products. No one in the stores even knew why, they just shrug and say that’s the way it is if you want to buy authentic USA products. If you don’t want to pay that much, go down to the little alley stores or fake markets to buy counterfeit. Yes, there really is such a thing as fake wine, fake beef, fake anything you name it in China. And there’s no way for you to build a long-term life in China as an American expat or even immigrate there. As soon as you turn 55 years old, they force retire you, refuse to renew your work visa and kick you out of the country after they’ve squeezed out whatever knowledge and ideas they could steal from you. How do they know your age? All CVs (resumes) are required to have your age and a headshot photo included.
1
The whole idea of the United States is a bait and switch. Trump just exposes it. A nation of manipulated laws for the benefit of the few while the rest are fed a myth so powerful even the intelligent have succumbed.
Land of the theif
Home of the slave.
Have a nice day.
14
So now I'm gonna hafta pay more for cheap, Chinese, shoddy goods and knock-off pocketbooks and clothing?
1
I still say the ego maniac incompetent demagogue is a free trader otherwise he would bring back his and Ivanka's trinket factories from slave labor India.
Then he will end the trade war, get a couple of bones from China and Western countries and declare he is the greatest president since Lincoln.
If I am wrong, it would be sad that instead of people rejecting him because he is a bigot, rabble rouser, admitted sexual predator, pathological liar, philanderer, borderline Russian spy, ego maniac demagogue, the people will say that's ok but will reject him because he ruined the economy.
8
Tariffs are taxes. The next time anyone tries to suggest that Trump lowered taxes, remind them of this.
43
So far the only beneficiaries of Trump’s tariffs that I see are Ivanka and ZTE. I wonder why Congress is seemingly doing nothing while the tariff’s are potentially going to cause financial chaos.
6
Once new supply chains are agreed to it will take decades to reverse their new patterns and probably the damage to American business will never be undone. Thus ends the American Century. Thanks Donny!
83
Not just supply chains. These tariffs are setting off rounds of cost-cutting which will not be reversed later.
3
If there's any silver lining to this, it's the fact that the tariffs have all of Trump's ham-handed fingerprints. Of course he and Fox News will blame Obama and Democrats in some Orwellian way, but when the economy craters from his multiple trade wars with China, Europe, and Canada, the blame will be quite obvious to the crucial independent voters who hitched their wagons to Trump in 2016.
69
China has an annual trade surplus of about 400 million per year with America. For decades we have had diplomatic talks about reducing it, and China has pledged to “restructure,” rather than rely on export revenues. Surprise! Now a U.S. official wants to make them put their money where their mouth is, and they aren’t willing to. That’s what you call a bad trade partner. I support Trump’s effort to fix the China terms of trade, and I’m willing to suffer a recession for it. Bring it on, Beijing!
5
Well, I am not willing to suffer a recession for an ill-advised, poorly thought through approach.
I hope you are a party of one.
10
What is it that Republicans love about recessions. They seem to be really good at bringing them on like clockwork. And then blame the Democrats for not ending soon enough.
306
The rich like recessions because a lot of profit taking goes on. In addition to shorting, a rich person can get into cash now and buy bargains when the prices hit rock bottom, whether it's stocks or real estate or businesses or whole industries.
8
Perhaps the opportunity to consolidate wealth among their elite through the stock market and devalued real estate? That recessions disproportionately affect the masses who then have less opportunity to complete for that wealth? That job insecurity brought on by recession makes the hand-to-mouth and middle-class workers more compliant and less outspoken? That recession reduces collectible tax revenue which in turn justifies reduced spending on social programs? That recessions demoralize people and foster protectionism of jobs/resources/space against “others”? Put these on a dartboard and take your pick.
8
People that already have money love recession because it makes their money more valuable -- as opposed to inflation that lowers its value.
1
We are just 30 seconds into the first round. Only a few blows have been landed and the effects are already being felt. Give the pounding 30 days and let's see if the ringside doctor stops the fight.
He wont because he can't see the damage going on inside the fighters heads. The broken blood vessels, the brain swelling.
That's the way trade wars do damage. It's not just the initial costs that are the problem. It's the ripple effects as they travel through the economy. It makes little sense to claim that the tariffs are only X percent of the economy, so only X percent will be affected. That X gets multiplied many times over. The example of farmers not buying tractors is a great one. Their income goes down, but they still have some income. So they postpone buying tractors and the tractor companies sales go to zero. Then the tractor suppliers go broke and the tractor dealers also.
If the cost of a domestically produced product rises sufficiently above foreign competition, they can't sell anything. We are seeing this now with Mid America nail company.
So basically, I'm stating that these macro economic arguments about the relatively small size of the tariffs compared to the total economy are dead wrong. The tariffs are like the blasting caps that set off the dynamite. Trump just lit the caps, now wait for the dynamite to go off.
After current inventories are depleted, prices will begin to rise. By round four, we will see who is hitting the canvas.
179
Once businesses find ways to cut costs (many of which will involve reducing their US workforce), they aren't going back to prior practices even if tariffs were lifted tomorrow. Kiss your jobs goodbye.
5
At this rate the world economy coming to a grinding halt. No prospect of China or US withdrawing from their mock battlefield. This is war; make no mistake. The next stage the foreign exchange markets will decide the winner and loser.
This is all rather pathetic because other matters are more important like another middle east war: Iran against Israel-USA. What else could go wrong? Climate change? Or Russia wins 2018 World Cup? Summer of 2018 like 1918.
2
Trump has no idea what he is really doing with these tarriffs. He is using the levers of Presidential power as toys. Playing with them simply to draw attention to himself.
139
Yet the very ones who will be hurt the most by these dangerous, hateful policies are still cheering him on. Look at the transfixed faces of his latest Montana rally crowd. They eat his hatred up like a drug. And those who claim that the young will save us are in for a very rude awakening. Again look at his crowds, plenty of young people to be seen. Who would have known the extent of the hatred that drives these people, even to the point of possibly losing our very democracy? Nothing seems to matter to them except the hatred he espouses. Our country is in a very scary place, the tariffs are trivial aside of the long term and possibly irreversible damage he and his supporters will do to our democracy, our environment, our education, our healthcare, our freedom. It truly is a cult and they won't stop until everything in their path is destroyed. I pity my children and grandchildren whose lives will be most affected by the damage trump will reap with his willing cohorts. I truly despise them and feel no pity for the havoc they will wreak. They are blinded by their hatred and willing to sacrifice all to feed the never ending rage. But saddest of all the innocent will suffer along with the gleefully complicit. They feed on hate, cruelty and bigotry lacking the empathy that makes them human. God help us all.
101
Trump's followers are like cult members. The Investigation Discovery channel has been running a series on cults. I'm waiting for the channel to do a show on Cult 45.
11
So the great deal maker is unable to negotiate better trade deals? So his inability to do so leads him to essentially go to Defcon 1 and impose ridiculous taxes that will only hurt our economy and the very people in the US he vowed to help.
Any good salesperson knows that going to such extremes is a last measure, a threat one would use to get what you really want. This is negotiating 101
Speaks volumes about his (lack) of intelligence.
44
"The escalation of the [US initiated] trade war from threat to reality is expected to ripple through global supply chains, raise costs for businesses and consumers and roil global stock markets...; [a] trade fight between the United States and almost everyone else."
. . . .
This is the business genius of Donald Trump in full bloom.
3
When the lords of commerce and industry and the farm bloc were seduced by Donald Trump's siren song of "Make America Great Again," they thought that voting for the hate would make all the difference(s) in their world.
The Trump"base," that hazy 35%-40% of the American voting dynamic, was equally mesmerized by the racist, nativistic, xenophobic call to the colors to punish our allies and enemies. The new president would stop the steep decline in American weight and prestige in manufacturing, investment, recruitment, employment and restore our "permanent" hegemony in technological innovation. America would once again shoulder competitors out of the way as it regained its rightful place in the world as the king on the throne while everyone else stood at the outer doors, hats in hand, begging admittance for a mere few crumbs. The New York businessman said so.
But his line was baited with hate and the hate won out. What this kindergarten of an administration--and the demographic for which they owe their ascension into the highest spheres of government--never could understand is that the world isn't frightened of America anymore. Who really needs us?
Now that America has thrown a right cross at China that missed, China, much to America's stupid surprise, is right up in our grill. The president, however, will not back down. He is stubborn, certain that his opposition will melt away. In the meantime, American producers and consumers will pay a steep price.
That's what hate does.
35
And the sad part is that his die hard supporters won’t even understand that he started this war and the repercussions they may feel are do to his actions.
The GOP is also complacent in this by not stopping him and following him around like a puppy.
VOTE THEM ALL OUT
Sad
106
Pre-Market indicators all point South.
Mission Accomplished!
6
I guess we should be thankful that China did not take a page out of the Trump playbook and punch back ten times harder. When he is in prison or gets impeached and thrown out of office we can then hopefully work on cleaning up the horrific mess he is making.
56
"Foreigner Price" is the price a nonChinese pays. It is 10x what a Chinese would pay for buying the same goods. This has been Chinese practice for time immemorial, before Mr. Trump was even born. You have never worked and lived in China. It is too obvious.
1
The dollar consequences have arrived big time. Elections and policies have results and our President’s electoral college win has certainly done some positive things for America. A mirror is now held up to America’s face and to the world so the ugly hair warts are clearly visible. And this presidency will show America the consequences of arrogance, greed, anger and ignorance. Like that old couple who fall for the sleezy contractor or Nigerian email prince with diamonds. Whether we Americans learn from this event and excise the warts or call them beauty spots is up to us. Let the blood letting begin.
6
And the sad part is that his die hard supporters won’t even understand that he started this war and the repercussions they may feel are do to his actions.
The GOP is also complacent in this by not stopping him and following him around like a puppy.
Sad
VOTE THEM ALL OUT
12
The most scary thing about Trump is his compulsion to act without any shred of serious thought. The man is ruled by his emotions. Sad!
17
Welcome to the Chinese Century, brought to you by Trump and his Collaborators. Goodbye, America. It was (mostly) good, while it lasted.
20
3, 2, 1, boom! The starter pistol has just been fired for large-scale economic mayhem.
8
I have asked repeatedly, including asking my slimy republican Senator....just when was a president granted the power to tax anything? Isn't that the job of Congress? President or not, no one person should have that kind of authority.
30
My inclination is to distrust the slant of this story. We really don't need quotes from a manufacturing company and a farmer in Indiana to know there will be cost increases in some industries as a result of these tariffs. There clearly, in the near term, will be winners and losers. But the challenges being raised by Trump are not near term issues. I don't think I've yet seen any reporting by the Times about Trump's assertions concerning theft of intellectual property and China's unfair trade practices.
8
What slant? This article presents facts and quotes by people who are affected and who are experts in this field. The slant is in your comment in that you believe that, because you didn't read what you wanted to in an article, that article therefore should be distrusted. That's like saying that, because in an article stating that 3 inches of rain fell in an hour somewhere it was not mentioned that flood insurance is available from the government, the article should be dismissed as slanted and untrustworthy. What also isn't mentioned in this article is Trump's own use of Chinese labor and other foreign labor and materials for his own businesses. That is also missing from your comment.
15
That topic has been covered in depth, so maybe you just don't read the paper every day like I do. you cant blame the Times for your shortcomings.
9
Tariffs are similar to a luxury tax
Purchaser has option to pay tariff or buy American/cheaper product's
Just as my family did when we paid VAT taxes when we purchased U.S. products when we lived in Europe for 10 years & other overseas nations for 9 years
I have lived in Europe. Tariffs are nothing like VAT taxes. Those are controlled and voluntary. You don't have to buy that American-made product if you choose not to. But a poor or working class person in America won't have a choice when they are hit by the trickledown effect of these trade wars. (And already, we're seeing gas prices going up.) They won't be able to afford to "buy American", which is more expensive. Why do you think so many low-income people shop at Walmart? Not everyone can afford to live in Europe or overseas and pay a "luxury tax". Most American families can't even afford a plane ticket.
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Value added taxes are not tarriffs professor. If you do live in Florida, you pay sales tax don't you? Is that the same as a tarriff?
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"for every dollar spent on an item labeled “Made in China,” 55 cents went for services produced in the United States."
“These tariffs are ... making it much harder for American firms to do business inside the United States, let alone export markets.”
The Moron-In-Chief has delivered the nationally-assisted-suicide-pill his foaming, spiteful, xenophobic, ignorant Whites-R-Us demanded.
Enjoy your national temper tantrum, Trumpers, and your idiotic river ride down the Trump Toilet.
D to go forward; R for manmade economic national disaster.
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"D to go forward; R for manmade national disaster"
I share your disdain for taxes, but you battle cry for the Dems is misguided...this a policy rooted in Bernie Sanders.
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Why would Trump deliberately hurt the United States? Surely it wouldn't have anything to do with his association with Putin. Someone must have discouraged them with the notion that the American people are too smart to fall for Trump's con, but as it turns out, they're not.
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F for Fossil Fuels triumphant.
Global economic depression or even recession means no investments and no growth. This hurts EVERYONE except the one industry that is being replaced fast by investment in clean renewables.
While the price of fossil fuels will fall as the prices for everything else will fall in a depression, fossil fuels will survive another day before they become useless and therefore TOTALLY valueless.
Is it possible the lap dog president for the Koch brothers, Putin and their ilk, had this in mind when he held a sign to his chest that read TRUMP DIGS COAL?
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When the economy starts to tank just remember we are winning.
Always winning...
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Just purchase other cheaper items vs Chinese items
Plenty of options thanks to U.S. politicians who sold out America or buy U.S.
Only trump can fix it! Oh wait. It was humming right along getting better every day until trump started hammering it.
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I wish NYT gives a fair view on how China quickly increased its economic output in terms of GDP by 30-fold whereas we could increase it only by 3-fold (more in line with inflation) in the last 25 years of free trade. It is clear that chinese benefited more from free trade than anyone else and it will bring them to negotiating table. It would have been nicer if our President included European allies and forced a joint action to bring fair trade as the GDP numbers suggest that they were also equally affected by the protectionist policies of China.
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How about we put tariffs identical to what every fireign nation puts on U.S. products?
TRUMP calls it RECIPICAL tariffs
Econ prof retired
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Well, yes when you move from a peasant based agricultural society to an industrialized base economy, something the US did long a ago an increased GDP is to be expected where it is easier to grow when you closer to the bottom of the development curve.
But instead of responding with good ol' American know how or Yankee Ingenuity we allowed companies to be run by the financiers and profit-at-all-cost seekers and rather than work hard whined and demanded protections.
In regards to including the Europeans, remember Trump said that he alone has all the answers. He doesn't need no stickin Europe.
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Tariffs are like taxes and big corporations have a way of getting around them. Expect a lot of the products and raw materials mentioned in this article to now move through the Caymen Islands, Lichtenstein etc.
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Well, after a run of several good years with the Obama stock market---now, with the Trump market taking effect, I've changed my philosophy from not how much I am earning to how little I can lose.
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“I just don’t think we’ve had any clear signs of the resolution he wants.“
President Trump likes to hear himself talk and he wants attention. He has no plan or goals. He wants to keep a foot in each boat on all economic matters.
He wants us to simultaneously believe that he has single handedly put the economy in “like, the best position ever,” with record low unemployment levels and wins across the board, and that we are playing against a stack decked where everyone is taking advantage of us and it is impossible for us to compete on a world stage. (Meanwhile, have you heard a peep from 45 about workers’ wages in our new economy?)
Always the (self-proclaimed) victor, but forever the victim. It is one of the cards in his bizarre deck that he never has in his hand because it is always in play.
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A number of my exporting and importing clients in the food and manufacturing sector have been feeling it since the first round of tariffs and expect it to get worse. Perhaps that man in the White House can ask more honest and smarter business people if "trade wars are good, and easy to win."
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But that is the problem. Trump doesn't seek advice, and would not follow it even if given it. In addition, Trump's understanding of economics and global trade is zilch. He hires incompetent people, lacking the experience for which they have been hired. Prime example is hiring his own family. The entire problem is accelerated by no one doing anything about Trump. Trump wants his ego fed and his actions clearly defies what is good for America. He and his family continue to reap the results.
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The price of gas went up 9¢ over night! While I was asleep! Also the price of a cheeseburger — the bellwether economic indicator — went up just last week. So this much heralded tax cut? Does Trump’s base still think it was a great deal? I got nothing out of it. Nothing! And now I’m paying for the wealth transfer to the rich through tariffs (a tax) and inflation. Yippee!
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In 1974, the US inflation rate hovered around 10-12%, ie, gas prices doubled in a year. Shades of things to come.
The Canadian dollar will go up as oil prices climb. That will hurt USA when they import Canadian goods.
And, wait for it, the real tax increase the tax scam bill really produced for us.
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The U S under Trump is moving markets globally and undermining economies with tweets,threats and actual trade actions .Despite the foregoing the U S $ gets stronger.
Its time to adopt a basket of Reserve currencies rather than depend on the US Dollar as the sole Reserve currency.The US no longer is a responsible custodian of Reserve for the world
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Are Ivanka's trademarks being cancelled ?How about the tariffs on assembled clothing that Trump did not include from China. She'd have to pay the same tax/tariff as everything else he taxed if it was included. Noblese Oblige.
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Ivanka and Jared made 80 million dollars last year...don’t think she really cares.
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Sadly, trade wars have a price, up to and including worldwide economic depression. But like strikes, which in the short term cause pain both to employees and the companies that employ them, they are sometimes necessary; obscenely lopsided trading agreements with and cheating by low wage countries like China have exacted a terrible toll on American workers and industry.
This action is long overdue and we should hold firm until the Chinese and other third world trading partners show by their words and actions that they are willing to play fair.
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Hopefully, you will get the chance to stand by your words very soon - perhaps by losing your job.
The current trade deficit with China is $375 billion. That is less than 20% of the tax cut Trump just gave to himself and his rich friends. And, considering that Bush's war of choice in Iraq cost us $6 trillion, and we got less than nothing in return, I would venture to say that that was a considerably more obscene and lopsided expense than what this "good and easy to win" trade war will cost us.
BTW: Do you think China should have a zero trade balance with us, even is we buy billions of dollars more of their products than they buy of ours?
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And exactly how are you going to 'hold firm'? How are the farmers? Or the workers in the factories that are already letting people go? How do you hold firm when you don't have a job?
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Americans buy very few Chinese products. The deficit is US products made China to keep prices low.
Voters in rural America who are very much responsible for electing this president are going to be between a rock and a hard place. It is their jobs that are most threatened by this trade war, and their most favorite place to shop, namely Walmart, will have to increase its prices to remain profitable. This demographic will further suffer as food stamps are also harder to come by and tied into ridiculous work requirements that can hardly be met in many rural areas that suffer from chronic unemployment.
If this situation were not as serious, I would say it's funny and Karma is coming for those who voted this individual into office. But, unfortunately, all of us will suffer.
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It doesn't matter, because they will fervently believe that God is punishing them because abortion is still sort of legal in the US.
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They may be forced to sell their made-in-China Make America Great Again red hats.
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namely Walmart
Known locally as Chinamart.
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Maybe I've been living in Europe too long but I don't understand something: aren't Indiana soybean farmers the people who voted for him? And skipping tariffs for "flat-screen TV's" so ordinary Americans aren't affected - how many flat-screen TV's do people buy lately? What are they doing with so many?
The EU tariffs are ridiculous. Western European workers are paid the same or more than American workers. Even Eastern European workers are probably cost competitive by now with various parts of the US. Plus there are much stronger environmental and workplace safety laws. Nobody manufacturers in Germany or France to save money.
Finally, I moved to Europe four years ago but Republicans, at that time, supported free trade more than Democrats. Have they changed? Why don't Congressional Republicans join with Democrats to pass a veto-proof law disabling this craziness?
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I expect Western European workers earn considerably more than many US counterparts.
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Almost every home in America, no matter how poor, has a flat screen tv. It's how Fox News reaches so many americans and convinces them that immigrants are the enemy and trump is their savior. I am not surprised at all if there is no tariff for tvs. It is the new "opiate of the masses"
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Michael, Republicans have indeed changed, and almost overnight. They abandoned 'Free Trade', they've abandoned their Hard Line on Russia. Some GOP Senators even spent the 4th of July in Moscow. I shutter at the thought of Dems doing that, when O was in office. Those are just some of radical changes I've noticed in the GOP. It seems as if they're willing to toss aside any, long held, positions in their service to Trump. It makes one wonder, did those positions ever really mean anything to them, in the first place? I will say this, I envy you, living in Europe and I'm not alone in that admission.
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Sure would be nice to take $34 billion and put it into something like education or healthcare.
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>AW
The tariffs are a percentage on the $34 billion. This doesn't change the validity of your argument, it just means less for the recipients.
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Or throw the $34 billion toward that $1 trillion dollar infrastructure plan Trump loved to tout during the campaign. Talk about a way to get Americans to work while simultaneously helping our economy and the safe roads, bridges, airports etc. that we all rely on
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I think its earmarked for the wall (since Mexico refuse to pay for it).
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The corn and soybean harvests are not that far off, so many farmers that are Trump supporters can enjoy the lower prices for their products in the very near future.
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"..so many farmers that are Trump supporters can enjoy..' eating their justly earned tofu.
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Of course Americans are going to save a lot when the corn and soybean manufacturers sell their products more in the USA and drop their prices!
"...many farmers that are Trump supporters can enjoy the lower prices.."
I bet that isn't the case. I'm betting that the Trump administration will enhance price supports and other mechanisms (probably in violation of WTO rules) that will soften the blow on farmers. In any case, those price supports will be paid for by you, the tax payer, to subsidize those Trump supporters. Gotcha!
I am neither a Trump hater nor a partisan of either party. I strongly embrace free trade. Trump's criticism is 100% correct that many other countries limit trade by having tariffs higher than ours. But his strategy for getting them to lower their tariffs is absolutely wrong. His strategy is to raise our tariffs in the hope that it will force them to lower theirs.
Trump's tariffs are a government tax on imports. They do harm to the foreign nations they are directed at by reducing demand for their exports to us. But their greatest harm is not to the foreign nations they are aimed at. Their greatest harm is to all Americans. Trump's tariff taxes hurt every American consumer by 1) raising the price of the imported product, 2) raising the price of American made products that compete with the import, 3) raising the price of nearly every other American made product because production of those products uses either some newly taxed imports or their now more expensive American-made competitors.
There are only 2 beneficiaries of Trumps tariff taxes: 1) Federal politicians who have more tax money to spend in order to secure their re-election and power, 2) That small minority of American workers and owners of companies that make products that compete with the newly taxed imports.
That Trump has the power to unilaterally impose these taxes is an example of the enormous growth of presidential power. That growth has been a grave mistake that must be reversed regardless who is president
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"I am neither a Trump hater nor a partisan of either party."
I assume it is getting harder and harder for you to say that line.
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"Trump's criticism is 100% correct that many other countries limit trade by having tariffs higher than ours."
Yeh, right! When is the last time you visited a foreign country and saw an American car on the road?
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Great comment...thanks!
Trade Wars have lasting and unpredictable consequences, one of which is recession-all are of you ready for the Trump recession? Mr.Trump does not understand international supply chains.He is still behaving as though he produces The Apprentice and runs Trump Inc,He has not assembled a credible economic team.He is so ignorant of economics that he has gone bankrupt several times.He is absolutely is rolling the economic dice with trade wars.
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It never produced anything in its disgusting life but bankruptcies.
Without question, China cheats in multiple ways when it comes to trade.
The difficulty is that Trump has only one way of dealing with problems and that is the sledgehammer way. It might just work. China might back down and come forward with meaningful proposals with little harm done.
Then again, the sledgehammer might do great damage to both sides, including the American worker and economy. Remember, China has the ultimate weapon and that would be to dump US Treasuries. America will be in a world of pain if that happens . . .
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"Without question?" Does that mean you can't prove it?
It would take about 5 minutes of honest study by most people to come to the same conclusion of unfair Chinese trade practices.
In the quasi-biblical public information environment being pursued by Trump cronies, I'd like to offer:
"let those who trade and have never, themselves, cheated be first to cast the stones of outrage onto those using the same methods now".
China has been threatening retaliatory tariffs on US lobster, which of course will directly and disproportionately affect Maine. The Chinese have alternative sources - namely, Atlantic Canada, with our most attractive currency exchange rate. We aren't being subjected to these tariffs. My son-in-law is a lobster fisherman, so I've been following this particular narrative with considerable interest. Trump appears indifferent to the fact that when the US loses, other countries can step in and benefit from his trade war. A downturn in the Maine lobstery fishery is just one illustration of this potential for serious harm to working Americans. Since these people include my friends, I do worry about the outcome for many of them (unless they support this man's agenda; then my sympathies are limited).
That having been said, this trade war will negatively impact many countries around the world and this, too, is bad for American business. Unless, of course, the markets slump and then the super-wealthy US elite can scoop up devalued stocks and make a tidy profit. "Wheels within wheels", perhaps?
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And the Trumpist lobstah fishermen still support him, just like the Iowa pork producers and the manufacturers in the red zones. Think Donald is correct: "...I could stand in the middle of Fifth Avenue and shoot somebody and I wouldn’t lose any voters, okay? It’s like incredible," The worse it gets, the more his base digs in.
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TRUMP Gallumphed into office with claims that America had gotten a lot of lousy deals. And that he was the only one who could improve those deals. When in fact what he's done is to make things far worse by orders of magnitude. He's insulted and alienated our staunchest allies both in the , Mexico and Canada, as well as those in the EU, initiating punitive tariffs as a means of "getting a better deal." What's happened in the real world outside Trump's very small mind is that our trading partners are focusing on ways to retaliate by targeting punitive tariffs on items that will impact primarily those who voted for him. Likewise with the Chinese. The juggernaut of the stock market will come down, probably just in time for the midterm election campaign, as will the economic indicators and unemployment rates will rise. If there is a perfect economic storm that breaks around the time of the election, Trump will have no one but himself to thank for having shot himself in the foot. (DISCLAIMER: The expression "shot himself in the foot" is a commonly used as a way of saying that a person has inflicted an injury on themselves. No harm is intended toward the person of the president.)
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I have no sympathy for his voter base. They drank from the conman's fountain, now they can bask in what he is delivering them.
Reap what you sow!
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This trade war was created by the President to level the economic playing field with China. It's known that China does play hardball regarding trade, but to start a trade war with the most powerful economy in the world is foolish. I don't think the President or his advisors thought this through.
The results of this war will most like cause a recession in the US.
Despite the huge tax breaks US Corporations received this year, those gains will be offset by tariffs and possibly goods being blocked by the Chinese government from entering China. Furthermore, the US owes billions of dollars to the Chinese banks. What will happen when these banks call in these loans for payment in retaliation for the US trade tariffs? How will this trade war affect the US trade relations with other countries? The collateral damage will be the US economy and the US consumer.
The President often makes policy decisions and then reverse them when his base or the majority of Republicans and US Corporations finds them unfavorable. Hopefully, the President will re-examine his decision and come up with a plan that doesn't hurt the US economy, but I'm afraid the US is slowly moving towards isolation and isolate economies do not fare well.
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To level the economic playing field Donniejohn ought to look at lowering the federal deficit. Playing hardball is when you slap tariffs willy-nilly on imports to protect certain industries. This administration which shows critical thought is beyond their capacity, once again causes chaos.
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SLOWLY moving toward isolation??
I think under our esteemed President we have moved towards isolation with a gallop, except for our "close friend" and election-interferer Russia.
We have already made America great by alienating our neighbors Mexico and Canada, as well as all our European allies. We have withdrawn from TPP, and from the Paris Climate Accord to which most other nations have subscribed.
We are already isolated and our world credibility has been shattered.
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@Zippybee57, in one's wildest dreams, this president or his advisors don't think. They gut respond because Donny don't like what he hears. They can't make a decision or follow anything through as they have zero background (as you point out), and cannot be bothered to actually listen to subject matter experts. Donny's so-called 'experts' are fawning to him and his conman tricks.
If it don't make money for Donny, it's a bad deal.
Donny is a BAD DEAL for this country; please return for a full refund.
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The US has seen the effects of Chinese industrial spying for years. Chinese innovations have actually been the result of them stealing our technology and even building plans after US scientists, engineers, architects, and companies spending hundreds of millions on research and development. For instance, while we are still busy getting patents for an innovation or a building design, the Chinese will quickly produce the product first, without spending a cent on research and development. Their espionage has paid off handsomely.
We need to do more to stop Chinese industrial spying, not initiating a trade war that only hurts innocent business entities here. But I am uncertain that simply limiting the numbers of Chinese nationals, such as the thousands of Chinese students coming to study at our universities will stop the thefts of intellectual property.
And why does a US company have to share its technology with China in order to operate there? I agree with Trump only on that point.
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Yes, a trade war is not going to help anyone. The unfortunate reality is that this administration has no experts on hand, no plan in place, for a diplomatic solution. Trump's experience in business is not compromise, but hard-nosed bullying to get what he wants. He has surrounded himself with people who deal with life the same way. Thus, the administration's ill-advised trade policy comes as no surprise.
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LT" "And why does a US company have to share its technology with China in order to operate there? I agree with Trump only on that point." They don't. If a company doesn't want to share Intellectual Property with China or anyone else, they don't have to. But the Company won't be able to capitalize on China's cheap labor, which leads back to cutting into the Shareholder's dividends/profits. That's the reason why they have to give up the rights, they want more profits at any cost. As usual, greed. If China hacks the product and builds one of their own, the Company can bring the case before the WTO (Before Donnie blew that option up).
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American companies don't have to share, these companies CHOOSE to share; greed overrides caution and common sense. The Chinese are not holding a gun to anyone's head. If the deals are so bad, so much to the advantage of the Chinese, don't make the deal.
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What's the definition of "war"? Is it war when a hostile force chips away at your defenses and slowly undermines your position? At what point do you fight back? Should you stiffen you defenses, chip away at your opponent, or escalate to what is now being called "war"?
My point is that China has been engaged in low-level trade warfare against the US for decades. I don't care for Trump's strategy here, but I do believe that something has to be done.
Admittedly our industries have been complicit, and perhaps something could have been done on the home front to buck up our defenses, but we didn't do it, and the other side kept advancing.
As long as we're talking semantics here, I have another point. Our tariffs aren't what's going to hurt American farmers, the other side's retaliation is. It's a war, albeit in the trade sphere, not the military. The other side strikes back.
Again, I don't believe that Trump has a reasonable strategy, but I do believe that something needed to get done. I could extrapolate this to the 2016 election itself; we needed a shakeup in Washington, but we chose the wrong person to do it.
Here we are. Enjoy the fireworks!
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Something does have to be done. President Obama was doing it. TPP, multilateral agreements, Paris, Iran all depend on building alliances and rules that everyone understands and will actually live up to.
Winning a trade war without establishing long term rules that everyone can live with isn't good for long term investing. It's great for speculators.
By weakening international laws and standards of behavior agreements won't be worth the paper they are written on. Power may be on our side today and someone else tomorrow. What will an agreement mean if this is how we get it?
We have been cowed to believe that America is great when we have abandoned international standards of behavior and law and act like Cowboys with big guns. The Chinese people have very long memories so do the Germans and everyone else.
Strengthen the WTO, build alliances and standards and make your case without acting in bad faith by claiming national defense or trade imbalances as a way to skirt norms of international behavior.
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I never said I agreed with his strategy, but that other stuff wasn't working either. And why we're picking on our friends is an absolute mystery to me too.
"We have been cowed... " what you mean "we" kemosabe? I haven't. If we were that great we wouldn't be in this situation. But here we are, with an impatient and uninformed leader thrashing around, and we are in that situation because the suggestions you mentioned didn't work.
HL: You've put words in my mouth. I never said I agreed with Trump's strategy, and yet you offer Obama's alternatives as a counter argument as if I were in favor of Trump's strategy.
Let me sum up what I believe for you. Obama's strategy didn't work with China. It might have been fine for Germany, Iran, et al, but China is on a different level. We need(ed) concerted, direct, and effective action, and we weren't getting it, from Obama or from Trump. TPP might have helped but it wasn't going to be enough. But again I don't believe in Trump's strategy either, so I can't and won't defend it.
Donald knows little, if anything, about China, its history, culture, or language. Although Chinese is one of the easiest, if not the easiest, language in the world to SPEAK ,it's probably the hardest to write because of its tens of thousands of written symbols (characters). Donald can no doubt barely say "hello" in Chinese. On the contrary, Chairman Xi (pronounced "syee" not "she") has spent time living on an American farm with an American family. He speaks passable English and loves to watch American movies such as "Saving Private Ryan."
If he had ever taken a ride on one of China's high speed trains across the Takla Makan desert all the way to the far west of China, Donald would have seen hundreds of thousands of windmills and solar panels already erected and many more on the desert floor waiting to be erected. He wants more coal mines. If he'd looked out the window he would have seen that the rails of the train tracks are held together by re-enforced concrete ties so there's little, if any, bouncing around.
Donald is serious about cutting health care and providing tax breaks for the wealthy. Chairman Xi is serious about improving the lives of all Chinese.
I've been to China more than 40 times, including time as a visiting scholar, and I've never heard even one bad thing said about America by any Chinese person. Of course, that was before Trump and his crude language and behavior left his TV show and he brought a cruder version of it to the White House.
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"Chairman Xi is serious about improving the lives of all Chinese."
Sure, unless you say something bad about Xi, or the Chinese government or happen to be Tibetan. China has a pretty abysmal record when it comes to human rights. The US is not perfect, of course, but you cannot ignore what China has done and continues to do to its own people.
You must be really a nice person, and Chinese people won't offend you, since they see you as a guest. I grew up in China, and I knew that a high percentage of people are hostile to the U.S., mostly due lack of free info. As for the Communist government, read their "People's Daily News".
Your well stated points just means Chairman Xi is a globalist, versed in the way the world works, is an intelligent Leader and a learned man. Draw your own conclusions to the US's Representative.
1