Posted by Tina
President Trump’s effort to gain a greater balance with China on trade is working well so far despite the absence of a signed trade agreement. Some economists feared that American consumers would pay a high price for the tariffs Trump has imposed on Chinese goods. Others voiced inflation fears. But it turns out that Chinese producers have paid the major share of the 25% tariff (20.5%) while American consumers saw a cost increase of just 4.5%. Additionally, the inflation rate is still below 0.2% and Americans are simultaneously enjoying growing job opportunities, low unemployment rates, and rising wages. Currently, the American economy remains strong while China’s economy is flagging.
The Trump administration will continue to pressure China on trade with a third increase planned for January 1st if a deal is not signed. Negotiations are focused on, “intellectual property theft; massive U.S. trade imbalances; imposed tariffs; and ridiculous non-tariff barriers put in place by China.”
Screams and gnashing of teeth will continue in the usual circles. But as Sundance at The Conservative Treehouse notes in his excellent article, “Trump will not back down.” It’s one of th things I admire about the man. Politics rarely drive the decisions he makes. Time after time I notice him going ahead with something that political handlers would advise him not to do because it might not “play well” politically.
President Trump and Xi Jinping are scheduled to hold talks at the G20 summit in Buenos Aires this week. There’s a chance that something positive can happen. The alternative for Xi Jinping is more pressure on Chinese goods in the form of tariffs.