Posted on 12/14/2019 4:07:41 AM PST by Kaslin
While campaigning for president, Donald Trump said that he would fix every one of the lopsided trade agreements that the U.S. had with trading partners worldwide. After being sworn into office, he carefully examined each agreement and came to the conclusion that each one had to be re-negotiated. The problem was that every trading partner was very reluctant.
And why not? For whatever reason, every single trade agreement was slanted in favor of our trading partner and to the detriment of the U.S. Each trading partner liked it that way.
As an example, consider the automobile industry. When a car is produced in Europe and sold in the US, a 2 ½ percent tariff is charged by the U.S. However when a car is manufactured in the U.S. and sold in Europe, the EU charges a 10 percent tariff.
For the agreement with China, a car produced in China is charged a 2 ½ percent tariff when sold in the US. But a US produced car is charged a 25 percent tariff when sold in China. Some cars, like the Corvette, are charged a 50 percent or more tariff.
China was even able to avoid the 2 ½ percent tariff by producing most of the car in China, then sending it to Mexico to be finished. When completed the car is sold in the U.S. and charged no tariff because the car came from Mexico.
The result of these lopsided agreements is that Americans annually import hundreds of billions of dollars more than we export. That means hundreds of billions of dollars annually flow out of the U.S.
President Trump’s goal was to renegotiate these agreements so that they encouraged free as well as fair trade. Fair meant that if countries charged a tariff, then the tariff should be the same whether importing or exporting.
But all of the trading partners did not want to renegotiate. Trump, being a business person and not a politician, knew that when negotiations are required and the partner is unwilling to negotiate, a sense of urgency must be created. Even though every conservative economist objected to large tariffs, Trump imposed punishing tariffs on our trading partners.
The purpose of the tariffs, in the short term, was to bring the partners to the negotiating table. In the long term, the goal was to have new trade agreements which were truly fair to both sides. So far it is working, marvelously.
Already a new agreement has been reached between the U.S., Mexico and Canada. There is a new agreement with South Korea and a new agreement with Japan. India is talking to the U.S. about a new agreement and even the European Union has pledged to work toward a zero tariff policy.
The last major trading partner is China. They were extremely reluctant to change the very favorable to China, trade deal. Trump imposed punishing tariffs. American critics warned Trump that we need China, which produces hundreds of billions of dollars of goods that are sent to the U.S. American citizens purchase many consumer goods at much lower prices because they are made in China. Critics also warned that China will retaliate by imposing tariffs on U.S. goods sold in China thereby harming American manufacturers.
Trump stood firm even with all Democrats, nearly the entire media, many conservative economists, and even some of his closest advisors saying the tariffs would be a disaster for the U.S. economy.
Exactly the opposite has occurred. Trump realized that China needed us more than we needed them, putting the U.S. in a strong position. However, complicating a deal with China was their refusal to honor intellectual property rights, the closure of Chinese financial markets to U.S. firms, technology transfer issues and the sharing of innovation.
Even with those issues a new deal was recently reached because the tariffs placed on Chinese goods crippled the Chinese economy. Their very strong growth rate was cut in half. When they retaliated by placing tariffs on U.S. agricultural products, the cost of food increased for Chinese citizens. Since workers are mostly very low paid (that’s why U.S. companies manufacture in China), the higher food cost created burdens for the average Chinese citizen.
China eventually relented as Trump was set to increase the tariffs even further. The first phase of a new trade deal is about to be finalized. China will be forced to change their behavior including the halting of their currency manipulation. Eventually Chinese markets will be open to U.S. manufacturers which will expand the U.S. economy.
Although many criticize his tactics and cringe when they read his tweets, no one can argue with his results. Trump has placed the interests of the country above all else. He has won the trade war as U.S. consumers, manufacturers, and taxpayers are all coming out ahead.
Sorry about the typo in the source
Amazingly refreshing to see a President keep a campaign promise that actually benefits our country.
“Sorry about the typo in the source”
Just don’t let it happen agien!/sarc
How very peculiar.
For whatever reason, every single trade agreement was slanted in favor of our trading partner and to the detriment of the U.S.
i blame copy and paste for that
bkmk -TRADE
A legend in his own time. God Bless him.
The reason the trade agreements were so bad for us is simple. Politicians have no clue in this area and are easily bs’d, plus since it is not their money they really don’t care. To them it as simply to have an agreement and claim a victory.
No one in gov’t understands business better than our President...just another reason why the Left hates him so much. By his positive actions re trade he has shown the world what a lousy job politicians have done.
Trade with China is doomed.
What results?
No one has seen the details of the deal yet.
This is just embarrassing fawning over Trump to get a few clicks.
“How very peculiar. “
After WWII the US bribed-up an alliance. We guaranteed free trade worldwide. It was no longer necessary for the French or the English to maintain a huge fleet to secure their captive markets and sources. In addition, the US threw open its market, the only significant rich market to survive the war, and allowed our “allies” to trade in that market at an advantage. The idea was to allow our allies to rebuild their economies. Over time, our allies became significant economic powers who preferentially protected their markets while America’s market remained open. This worked fine until the end of the cold war. Then, the policies continued. I suspect that because of the deal the allies were able to develop socialist policies that they could no longer support in a new, equal trade market. (For example, Germany has for all practical purposes already given up its military to spend more on social programs and free stuff. And, as always, they have run out of other people’s money and need ever more.)
Significant elements in our politics liked the socialist economies and wanted to emulate them here. Therefore, those elements (Democrats) could not allow a free and equal trade to develop as it would destroy all of those “marvelous” social programs in our allied nations. (The ones Democrats always say of, “See look at XYZ, if they can do it there we can do it here.”)
Trump has shown results on the economy, judges, immigration, etc, etc. Care to argue with the those or are you living in an alternative reality? The writer is basically saying past results prove you can’t argue.
NOt just the left. This is a slap in the face of the Bush liars and cowards
Yeah, let's just talk about how great DJT is regardless the topic of the article.
That will make the forum more interesting.
The trade war with China is not yet won and will, if we are lucky, continue for a long time and be escalated until China’s economy is severely damaged and permanently retarded.. It’s my personal opinion that China will cheat in any Phase 1 agreement — it’s in their nature.
What results?
Maybe the economy, the judges, the other trade deals... i would consider those quite positive results he has given us so far and I have no doubt his China deal will result in the same. After 3 years of this President I have faith in his work. His clear love of America does not bother me too much either.
China makes cars??? Sheeeyit. I wouldn't care if I got a 2 1/2 percent spiff for buying a Chinese made car, I wouldn't buy one.
Maybe, but can we see the deal before we declare it to be divinely inspired?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.