Update – China Tariffs

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.

This entry was posted in Business, Industry and Finance, Morals and Ethics. Bookmark the permalink.

3 Responses to Update – China Tariffs

  1. Pie Guevara says:

    The days of America as the self loathing, socialist wimp, PC social justice circus from hell are temporarily suspended.

  2. Libby says:

    Girl, you are quite the … well, plucked from TreeHouse:

    “That’s the conclusion of a new paper from EconPol Europe, a network of researchers in the European Union. U.S. companies and consumers will only pay 4.5 percent more after the nation imposed 25 percent tariffs on $250 billion of Chinese goods, and the other 20.5 percent toll will fall on Chinese producers, according to authors Benedikt Zoller-Rydzek and Gabriel Felbermayr.”

    And here’s you:

    “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%.”

    That’s quite a tense shift … you really should be ashamed. I don’t know why your’re not ashamed. Particularly when the scenario purported by EconPol Europe is ONLY purported. They think this is how it will work out, but they do not know.

    And only an acolyte of that “Zero-Sum” moron in the White House would believe that an unhealthy Chinese economy is good for the U.S. We owe them a WHOLE LOT of money … what if they have to start calling it in? Think, girl !

    • Tina says:

      Think yerself ya old bag!

      It wasn’t a guess pulled from their bums. It’s based on what they’ve seen thus far. The idea is it has fallen far short of the left’s scare tactic headlines!!!!!!!

      WE are the biggest holders of US debt!

      …the Social Security Trust Fund, aka your retirement money, owns most of the national debt. … Intragovernmental Debt. This is the portion of the federal debt owed to 230 other federal agencies. Intragovernmental holdings total $5.7 trillion, 28 percent of the debt. … The public holds the rest of the national debt of $14.8 trillion. Foreign governments and investors hold almost half of it. Close to one-fourth is held by other governmental entities. These include the Federal Reserve, as well as state and local governments. Sixteen percent is held by mutual funds, private pension funds, and holders of savings bonds and Treasury notes. The remaining seven percent is owned by businesses, like banks and insurance companies. It’s also held by an assortment of trusts, companies, and investors. … In September 2018, China owned $1.15 trillion of U.S. debt. It’s the largest foreign holder of U.S. Treasury securities. The second largest holder is Japan at $1.03 trillion. Both Japan and China want to keep the value of the dollar higher than the value of their currencies. That helps keep their exports affordable for the United States, which helps their economies grow. Despite China’s occasional threats to sell its holdings, both countries are happy to be America’s biggest foreign bankers. China replaced the United Kingdom as the second largest foreign holder on May 31, 2007.

      The tariffs Trump is imposing to press China toward a more equitable agreement that includes discontinuing the practice of stealing innovation, amount to a pittance in the big picture. Chna needs us more than we need them and they know it. You would know all of this if you weren’t such a know-it-all-sensational-headlines news consumer. Your media would also know it if they were interested in facts and honest, complete reporting…they aren’t!

Leave a Reply

Your email address will not be published.