Ok, so here it is.
As widely reported, the U.S. is set to levy some $50 billion in tariffs on Chinese imports in an effort to “offset” the theft of IP.
Trump’s singed the tariffs around 1:00 p.m. Here he is talking about his “friend” Xi:
President Trump announces new tariffs against China, but says he views the nation as "a friend" https://t.co/hgtRUmeXqe
— CNN Politics (@CNNPolitics) March 22, 2018
Wilbur doesn’t understand you can lower the mic:
Look at this fucking alpha male pic.twitter.com/PopDAD8yKH
— Thornton McEnery (@ThorntonMcEnery) March 22, 2018
The tariffs will be published within two weeks and they’ll be an open 30-day public comment period prior to their taking effect.
According to senior administration officials, “many of the proposals reflect areas where China has sought to acquire advantage through unfair acquisition or forced tech transfers” and as reported this morning by WSJ, the President will also instruct Lighthizer to pursue dispute settlement at the WTO – an effort to take up China’s licensing practices, which US officials say are “discriminatory.”
Additionally, Trump will ask Mnuchin to look at expanding limits on Chinese investment and acquisitions in America “beyond” the current CFIUS reach.
So that’s the long and the short of it. Actually that’s not true. That’s just the short of it. For the “long” version, stay tuned to your local financial news network and also to Trump’s Twitter feed where the President will invariably explain (again) how “easy” it is to “win” trade wars and also how “good” trade wars are for the U.S. economy.
For more on what China can/will do to retaliate, see “Here’s What China Will Do Under ‘Trade War Light’ And ‘Trade War Heavy’.”
Summed up…
Why do the heathen rage, and the people imagine a vain thing?
Has any nation ever ‘won’ a trade war – or a currency war?
Have tariffs, taxes and inflation ever worked?
Sorry for the snark. Those are trick questions. As history shows, it’s a race to the bottom where each nation (and its citizens) will lose. Someone way up the food chain must be winning…
Hopefully Mr Xi takes the high road and thereby wins the hearts & minds of the world, which Trump has mostly lost. Maybe target just minimal shit from Paul Ryan’s district (milk cows?) and a few like him.
Can the US congress, after it changes in November, restrain or even overturn this Trump train wreck?
I don’t think that Mr. Xi will pass up the opportunity to humble the US. One never knows though.
No, because Xi knows it’s a lose-lose situation and you don’t make the other guy “lose face”…
So expect that Xi will bring just measured responses to bide time and hope to isolate Trump, rather than let emotions escalate beyond control, and then defuse it on good terms with Trump’s more enlightened successors.
That is better in the long run for all, and Chinese being an ancient civilization, recently re-emerged from the worst 200 years of its 8000-year history, thinks in long-term cycles so Trump barely matters because China knows Trump will be gone in 2.5 short years, and within one year he’ll probably be hand-tied with strong opposition in congress and/or fighting impeachment.
btw, I don’t like impeachment because it’s really divisive with bad economic consequences
Wonder if anyone has checked for very recent stock shares sold by anyone named trump? Jr. Sr. maiden names ex-wives ex-children best friends Oh, and someone named eric maybe – you know, before it crashes.
“Cannonball coming”, in the immortal words of Bill Murray from “Caddyshack ” (1980). Xi will merely stop buying our debt and send the message very politely to The Fed, Wall Street and The White house “Please Don’t Fu*k With Us”. He will do this while smiling the whole time. Waiting in the wings are Russia, Saudi Arabia and any other country who KNOWS we are BROKE.
Our “Liar in Chief” doesn’t realize that this ship sailed four presidents ago.