Posted on 07/24/2018 7:57:13 PM PDT by entropy12
The U.S. is likely to maintain a trade deficit with China even if all tariffs are removed. Why? The U.S. is the largest economy in the world, and the American consumer has a ferocious appetite for goods and services. The U.S. economy simply consumes more than it exports. This is not going to change anytime soon.
Tariffs are a different deal. They are imbalances. Take the automotive industry, for example. The Chinese and Europeans charge higher tariffs on U.S. cars coming into their markets than corresponding Asian and European automobiles entering the U.S. markets. This has been going on for years. For decades, no U.S. president has had any interest in getting into a skirmish over this, as it was far more expedient to “keep the peace” rather than get into an escalating trade war that may cost American jobs, reduce productivity and maybe cause creeping inflation. Why take such a risk? No previous administration did, and the gap between U.S., Chinese and European tariffs continued to grow.
(Excerpt) Read more at thehill.com ...
What? Fair trade?
Why I never!
Restriction or tariiffs of certain goods will make it profitable to manufacture in America.
Short term pain for long term gain.
Our great President Donald J. Trump takes seriously matters related to jobs and the economy and he is playing the big game to win with tariffs.
“Make America Great Again” isn’t just a slogan, its got legs, arms and other appendages.
How long until tariffs are reduced by China and the EU?
That’s been happening, and scares the crap out of China because they need those US exports.
“The U.S. economy simply consumes more than it exports. This is not going to change anytime soon. “
That’s the stupidest statement I’ve ever heard.
Ping.
“Restriction or tariiffs of certain goods will make it profitable to manufacture in America.”
Iow, tariffs will bring capitalism back to America.
Depends on how firm our side stands in negotiations.
If China loses $800+ Billion sales EVERY YEAR, there will be 100-150 million Chinese workers losing their jobs.
President Xi will have to seek asylum in Taiwan.
So $800 pain for China, $300 Billion pain for USA?
Who do you think will blink?
Nobody gives up money easily just because you are a nice guy. It requires leverage to extract money. Tariffs are the ONLY leverage we have.
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