The Trade War that President Trump Knows He Will Win
How do you lose a war your predecessors already lost?
That’s what President Trump now tries to explain to bonehead Leftists.
Because of “progressives”, I paraphrase former Obama Era Attorney General and crook Eric Holder: “America has become a nation of cowards.”
Losers in fact. Take the U.S. Chamber of Commerce’s stance for example. That loser organization claims that President Trump’s trade policy could cost millions of jobs.
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Consider how many jobs $800 billion would create.
For those doing the math, that’s 800,000 millionaires.
Not enough people helped? OK, try 8 million people earning six figures.
Donald Trump recognized the lunacy of a policy that spends $800 billion dollars annually, year after year. The very fact that America was governed by losers is what prompted Donald Trump to shake up the world and win the presidency. Moreover, one of his campaign issues centered around trade.
Trump called America’s trade policy insane, and he was 100 percent correct. What moron would be content to lose almost every trade engagement? Morons of the Progressive type, that’s who.
But now that President Trump tackles the problem of trade, the very people who either created the problem or helped create it, suddenly want to chime in on the solution?
As one of my Twitter friends put it: Leftists prove to you how anti-American they are when they want to convince you to keep losing in trade.
Interestingly, as with most Trump policies, he stated his goal.
Trump said he will reduce our trade deficit, making our partners make things more fair.
Thus, as the LA Times explains, the first salvo comes against China.
President Trump announced Friday that the U.S. would go ahead with hefty tariffs on about $50 billion worth of Chinese goods, following through on a threat that could ignite a global trade war.
“These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs,” Trump said in a written statement. “In addition, they will serve as an initial step toward bringing balance to the trade relationship between the United States and China.”
Trump again complained about the large U.S. trade deficit with China. The administration has portrayed the tariffs as a targeted strike at technology theft and a broader pressure tactic in trade negotiations with Beijing.
So in other words, President Trump addresses two major issues with one action.
A warning to China, play fair with the U.S. or lose our trade.
According to some analyst, the news of the tariff sent the Dow Jones industrial average tumbling about 280 points in early trading Friday. However, the market recovered to close down only 84.83 points, or 0.3%, at 25,090.48. All in a day’s work, you can bet President Trump sees it.
After all, who’s responsible for the record stock market anyway, right?
Beijing vowed to retaliate dollar-for-dollar and already has singled out big-ticket U.S. imported products, such as soybeans and aircraft, to maximize political pressure.
“China doesn’t want a trade war,” said a spokesman for China’s Foreign Ministry in Beijing. But “confronted by such short-sighted” action, China “will immediately take tariff measures of the same scale and intensity,” he said.
But not to be outdone, the president’s statement informed the U.S. “will pursue additional tariffs if China engages in retaliatory measures.”
And you can bet that Trump has an answer to mitigate the soybean and airplane purchases that China threatened to cut. Because the answer is very simple.
The government can use the money saved to subsidize ALL industries in America. When your trade deficit is large enough to be the 19th largest economy in the world, you have little to fear from trade problems. If the U.S. took $375 billion from China and invested in American manufacturers willing to make the same products, we might be better off. In fact, I contend that the only reason we allow China to maintain such a big deficit is we want stability in Asia.
Until President Trump forced their hands on North Korea, Asia wasn’t exactly the most stable region of the world.
As for the Chinese threat of retaliation, Trump ignored them as the article suggests:
Despite those threats of escalating actions, Trump dismissed warnings that his move Friday to impose the additional 25% duties on hundreds of Chinese imports would start a global trade war even as some top Republicans and business groups criticized the step.
“The trade war was started many years ago by them, and the United States lost,” he said on Fox News’ “Fox & Friends” shortly after the tariffs were announced.
Interestingly, the world community, aka the so-called partners who have been ripping off America for decades decided to run to the World Trade Organization (WTO).
Many of our trading “partners” have threatened retaliatory countermeasures and legal filings challenging the administration’s actions with the WTO.
I suspect President Trump laughs at the idea. Like the WTO will dictate America’s trade policy, particularly one that has us losing billions of dollars annually to almost all our trading partners.
As for threats, what exactly can they do. The GDP of the other 6 countries who were part of the G-7 don’t add up to the GDP of America. Further, many of the countries side with the U.S., as they agree that the gravy train has lasted longer than expected. Even the article suggests that economists know that Trump is right.
Most analysts, businesses and lawmakers agree that China has not played fair in trade. But Trump’s impulsive trade rhetoric and unilateral policy moves have isolated the U.S. and opened up America to criticisms of undermining the global trading order.
“China is not surprised by Trump’s tactics, considering Trump could prey on his closest allies like Canada and the E.U., why not China,” said Alex He, research fellow at the Centre for International Governance Innovation, a Canadian think tank, and former associate professor at the Chinese Academy of Social Sciences.
“China’s tired of Trump’s game of deal-or-no-deal when it comes to trade and will respond to the tariffs calmly,” he said.
What does the $50 billion impact?
About two-thirds of the new U.S. duties on 1,102 types of imported goods will take effect July 6. The rest were newly proposed Friday and will kick in later after a review period.
The list issued Friday targets categories of Chinese products that administration officials consider to be “industrially significant technology.” As I indicated earlier, the action taken by President Trump punishes China for alleged theft of intellectual property as well as policies that force U.S. firms to hand over technology secrets.
Thus levies are aimed at China’s development of strategic sectors including aerospace, robotics and communications.
“We have the great brain power in Silicon Valley, and China and others steal those secrets and we’re going to protect those secrets,” Trump said on “Fox & Friends.” “Those are crown jewels for this country.”
For now, China can continue to ship most consumer goods, like cellphones and televisions, many of which are made or assembled in China. But the sector on which China has feasted is off the menu.
Naysayers warn that average Americans could suffer from Trump’s policy. But then again, they could not suffer.
My bet is the America public won’t feel it, because the Chinese will capitulate if they are smart. And they are.