Finally, An Explanation Of Trump’s China Tariff Strategy That Makes Sense

It’s pretty obvious with the tit for tat back and forth the United States and China have been doing with tariffs, that something is going on. The pundits and television news personalities tell us that it is a “trade war.” President Donald Trump and members of his team, successful businessmen who have advanced degrees on how to do business all over the world before “free trade” was preached, call it leveling the playing field.

The truth is that the people have been deliberately confused over this. The globalist factions in American business want the American market open to the rest of the world, hence the next to nonexistent tariff this nation has had for decades. The problem is that sort of thing is akin to opening the door and telling burglars to come on in and take what they want.

Jesse Richman, Howard Richman, and Raymond Richman have a piece over at American Thinker that explains what China was doing to the USA with this “free trade” we had going.

On Friday, President Donald Trump took a huge step …. He raised the U.S. tariff rate from 10% to 25% on $200 billion per year worth of Chinese goods that were being imported into the United States. Back in July, when Trump had initially imposed the 10% tariffs on Chinese imports, China responded by imposing tariffs on $110 billion of U.S. exports to China.

Trump also threatened to place tariffs on the other Chinese goods being imported each year into the United States. This gives the U.S. leverage that China can’t match. As a result of its mercantilist strategy, China exported $540 billion worth of goods to the U.S. but only let $121 billion worth of U.S. goods into China in 2018. (Mercantilism is the “beggar-thy-neighbor” economic strategy of maximizing exports and minimizing imports in order to grow at one’s trading partners’ expense.)

And it is no secret that China has been dumping cheap goods at cut-rate prices on the American market using this strategy for a long time. There have been additional consequences including technology transfer and intellectual property theft.

The negative consequences of China’s trade policies have hit many parts of the United States and many regions of the U.S. economy. Innovation, marriage, health, and welfare suffered as a result of what economists term the China shock.

The massive trade surpluses accumulated by China have reflected and catalyzed the massive transfer of technological and manufacturing capacity from the free world to China’s censored, repressed, firewalled, and very much unfree world. By 2013 many millions more workers were employed in manufacturing in China than across the entire Western world.

President Trump is trying to reverse that using the same strategy.

That is all.

Yes, prices will rise thanks to the tariffs, but perhaps that will spur American manufacturing of goods that were being dumped on the market. If that is the case, this is short term pain for long term gain.

Read the article referenced at American Thinker.

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2 Comments

  1. We have been importing fully loaded container ships of Chinese made goods loaded to the gills, then sending most of those ships back to China… EMPTY!

    “Those who suggest Trump started this trade war with China have it backward. Beijing has been waging economic warfare on the United States for years — stealing our intellectual property, forcing our companies to transfer technology as a price of doing business in China and subsidizing state-owned enterprises to prevent U.S. businesses from competing,” Marc Thiessen writes in The Washington Post.

    Sure the price of Chinese goods will rise!
    For you Leftists… Do you REALLY think that EVERYTHING is made in China?
    The Chinese Tariffs will cause people to purchase goods that were either made in America or made in another country!
    As far as our exports to China… sell that stuff ELSEWHERE!

  2. FORCE China to play on a LEVEL FIELD:
    Lower the cost of US Labor to the same percentage to manufacture similar goods here.
    Or increase the cost to China to import those goods.

    The Presidents Plan, which ALWAYS WORKS whether or not the liberals like it, is to force China to allow FULL CONTAINER SHIPS BOTH WAYS!

    American People will go to work at higher paying jobs to create those goods.

    ONLY DEMOCRATS prefer UNEMPLOYMENT TO CONTROL THE PEOPLE over allowing them to perform at their highest levels to improve their own lives.

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