Trump is right. The devaluation of the Chinese Yuan and the Chinese companies eating the tariffs hurts China a great deal. They cannot sustain this policy for too long.
Overall, this is great news for U.S. consumers.
Wal-Mart purchasing managers have likely been telling their Chinese suppliers they “We don’t care about new or increased tariffs, we are not going to pay more for your products. If you don’t like it, we’ll buy from somewhere else.”
Other large buyers from other companies are likely telling the Chinese the same thing.
Trump is a great negotiator, but he has nothing on Wal-Mart when it comes to negotiating.
China has a lot of debt, internal debt, so this allows them to pay that debt at a better rate. The apparatchiks are screwing over their own people over a trade war. If some stupid western bank bought Yuans ans loaned them money and are now getting burned, screw these traitors.
“Trump is a great negotiator, but he has nothing on Wal-Mart when it comes to negotiating.”
The sharks of the business world will be ripping off their chunks.
The President just need to align the incentives, and let the markets work.
Wal-Mart purchasing managers have likely been telling their Chinese suppliers they “We don’t care about new or increased tariffs, we are not going to pay more for your products. If you don’t like it, we’ll buy from somewhere else.”
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If Walmart’s buyers are smart (and I think they are) they are well along on the path to non-Chinese suppliers (domestic American and/or other foreign). Anything that weakens China is good for both America and the World at large.