Posted on 02/25/2020 8:41:06 PM PST by UMCRevMom@aol.com
President Trump knew that it was unreasonable and unsafe for the US economy to be so dependent on China. He was ridiculed for his tariffs which now appear to have prevented a major economic catastrophe due to US companies moving their operations out of China over the past couple years.
Last night, Melissa Francis from FOX Business Network, was on Tucker Carlson Tonight and she shared this observation:
Because he [President Trump] started this trade war that was costing companies money, they went out and set up different ways that, well maybe we can get this from here, here’s our second, maybe we’ll do this if it [the trade war] doesn’t get solved, and companies have either moved or found a different way…
…But it’s ironic that President Trump sort of warned us about this relationship and as usual faced so much ridicule over it and now we see yet another reason why we shouldn’t be totally dependent on this one country for so many things.
Forbes reported in August 2019 that President Trump’s actions would likely move American companies out of China:
Assuming Trump makes good on his promise to tariff all China goods at 10% starting Sept 1, with the very real possibility of those tariffs hitting 25% soon after, then it looks like more companies will move their supply chain.
For a long time, China has been the world’s low cost, low regulation, manufacturer of choice. Even though multinationals would like to keep it that way, some 40% of U.S. companies are relocating at least some of their supply out of China, according to a May 2019 AmCham Shanghai survey.
“This shows the disruptive effect the trade war is having on supply chains. If new U.S. tariffs do take effect September 1, the increased tensions will likely accelerate the relocation trends we are seeing now,” says Kenneth Jarrett, a senior advisor at Albright Stonebridge Group, a Washington DC based strategic advisory firm.
CNBC reported in July 2019 that more than 50 companies had pulled out of China due to President Trump’s actions:
The pace of companies moving production out of China is accelerating as more than 50 multinationals from Apple to Nintendo to Dell are rushing to escape the punitive tariffs placed by the U.S., according to the Nikkei Asian review.
The trade war between the U.S. and China has dragged on for more than a year with 25% tariffs placed on $200 billion of Chinese goods. President Donald Trump is still threatening to slap duties on another $325 billion of goods. In wake of the intensifying battle, more and more companies announced plans or are considering shifting manufacturing from China.
President Trump again did the right thing in the face of media and Democrat ridicule that ends up saving the US and the US economy.
I have wondered why we didn’t involve India, a democracy, instead of China and the conclusion I came to was the Clintons and their Chinese and maybe Walmart payoffs got the ball rolling. Maybe I’m wrong..don’t know.
It has been happening for a LOT longer than Obama.
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I may be wrong,but thanks to Nixon,he open relations with China, wish he had not done that though, it has its pro or con. Papa Bush Sr. who started the ball rolling by allowing the selling of our technology to China and Bush Jr., the son gave the decision to sign a proclamation granting China permanent normal trading relations with the United States. Yes even the Clintons and Jug Ears played with China. Remember they are all Globalists and they don’t gave a dam about our nation except their pockets.
Sen Hawley has started drawing attention to this, although it’ll be slow like trying to turn around a tanker, ramping up US production again.
I kept hearing about how Trump’s tariffs are so disastrous which seems very suspect to put it mildly. If you have China or any other country slapping tariffs on the Unites States when they have the trade surplus and we have the deficit, it is a rigged game. It was a good move by Trump to try to rectify this imbalance and get America more self-depedent.
Now that USMCA is in place, I’ll bet Trump helps take out the cartels in Mexico. Then Mexico starts encouraging companies to move manufacturing there.
This solves logistics problems, also solves drugs and illegals coming over the border. Also, a more prosperous Mexico means Mexicans self deport.
He would need at least three terms to undo the stupidity of past administrations, if the last one wasn’t engaged in outright sabotage.
Exactly. Well said.
Goes all the way back to the 1980’s when global outsourcing started with nearly every industry/corporation in the U.S. I worked in defense so much of that wasn’t offshored until much later. Drug manufacturing was outsourced to Puerto Rico around the same time. Cheaper. Plus, without tort reforms and yes, patent protections, it wasn’ cost effective to develop flu vaccines here. (Parents both worked in Pharma)
Back to Reagan?
“Looking at the big picture, it looks like there is a continental shift towards India in the works for the future of manufacturing in Asia...”
Numerous private equity firms have been leaving China and heading for SE Asia and India since 2011. By 2030, half the population in China will be 50-years of age and older. By that same year, half the population of India will be 30-years of age and younger. The future is India.
We need tariffs on products and not countries. Tariff’ing countries and not products perverts the purpose of a tariff. We need to bring manufacturing back to the USA, the 30 year failed experiment in globalism needs to be ended, ASAP. Tariffs would do it.
Perhaps. At least to HW Bush.
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