As widely expected, and as he himself previewed earlier in the day, Trump was set to unveil a major development in the US-China trade war this afternoon. That happened moments ago, when the president, in a series of 4 tweets, confirmed that he indeed was hiking tariffs on both existing and future China tariffs.
Specifically, Trump announced that in response to the $75 billion in tariffs that China just imposed on the US this morning - which “should not have” been put on as they were “politically motivated” - starting October 1, the existing 25% tariffs on $250BN in Chinese goods would rise to 30%, and the 10% tariffs on $300 billion in Chinese goods set to begin on September 1 will be 15%.
Here is the Trump announcement:
For many years China (and many other countries) has been taking advantage of the United States on Trade, Intellectual Property Theft, and much more.
Our Country has been losing HUNDREDS OF BILLIONS OF DOLLARS a year to China, with no end in sight.
Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer.
As President, I can no longer allow this to happen! In the spirit of achieving Fair Trade, we must Balance this very unfair Trading Relationship.
China should not have put new Tariffs on 75 BILLION DOLLARS of United States product (politically motivated!).
Starting on October 1st, the 250 BILLION DOLLARS of goods and products from China, currently being taxed at 25%, will be taxed at 30%.
Additionally, the remaining 300 BILLION DOLLARS of goods and products from China, that was being taxed from September 1st at 10%, will now be taxed at 15%. Thank you for your attention to this matter!
And the tweets themselves:
….Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer. As President, I can no longer allow this to happen! In the spirit of achieving Fair Trade, we must Balance this very….
— Donald J. Trump (@realDonaldTrump) August 23, 2019
…Additionally, the remaining 300 BILLION DOLLARS of goods and products from China, that was being taxed from September 1st at 10%, will now be taxed at 15%. Thank you for your attention to this matter!
— Donald J. Trump (@realDonaldTrump) August 23, 2019
Of course, all of this was perfectly predictable the moment Jerome Powell underwrote Trump’s trade war, when he said on July 31 the Fed is now focusing on “global developments”, effectively assuring he would keep cutting rates the more trade war between the US and China escalated.
And now we await China’s retaliation as Beijing has no choice but to retaliate again in tit-for-tat fashion, and is likely to hike the rate on its own tariffs targeting US goods, which will then prompt Trump to raise tariffs even more, at which point China will retaliate in kind, until eventually all trade between the US and China grinds to a halt, at which point the question is which country will succumb to recession and/or social unrest first.
Meanwhile, the real news this afternoon, is that there was still no announcement of currency intervention by Trump, or rather not yet. We expect that to come some time in the next 2-4 weeks.
via zerohedge
🎆💓👍TRUMPence2020👍💓🎆 successfully US Reelected assuredly
Amen & Amen!!!
I am proud of our powerful, brave president. FAIR trade is a common sense and economically vital goal for our country, and actually for the world. No one country should be able to take unfair advantage of the system.
President Trump is a king warrior leading us into battle!
He has the wisdom, knowledge, love for our country that should be way ahead financially, but all the previous low intelligence, financial wisdom challenged and wanted to be liked by all the world. Now we have someone who is asserting world wide RESPECT and they can’t leach us with the horrible deals they made. We might suffer a little but is necessary to go to the top where we belong! Why does everyone from all other countries want to come here if we are so racist like China, Europe, Latin America, India, Africa, Asia, did I forget any place? Did you forget that blacks in Africa started to ship BLACK SLAVES to other countries, then blacks should pay reparations to blacks! The truth hurts! Deal with it fools! I am very racist to liberals and most democrats!
Too bad you poor rednecks who voted for him are going to get hit the hardest. Where do you think Walmart gets all that low class/low cost crap you love to buy? Thanks for screwing it up even for us who make good money.
Poor uninformed voter with your head up your obnoxious butt. Our president is a brilliant business man, not a weak politician. If you make good money, thank him for our robust economy. Until the last election, most of the country was struggling under Obama’s policies that allowed other governments to take advantage of us. Pres. Trump has the backbone to stand up to them and put America first. Trump 2020.
Too bad you received that 72% in econ 101 and 102 while you were getting that business degree at your community college. Your not too bright about the subject. If you were you would have known 24 years ago Clinton sold you down the river with the trade agreements he signed all over the world. However, you did get that 72% and now you do not know economics.
Prices are set based on market not cost. Undifferentiated products cheap; differentiated products expensive. Porsche differentiated; Chevy sonic undifferentiated. Walmart strives to find undifferentiated products for their stores. That is why they are cheaper. If you would have received a good grade in econ or finance or marketing you would have known that, but you did get that 72% and now you do not know.
I will add to that they you don’t think very far about the products you buy at Nordstrom’s as most of them are built in China, Vietnam or Pakistan too.
Then there is you lack of knowledge on product development and supply chain. Other then Boeing, who is moving more and more value add to china, we ship mostly raw materials to china and they do all the value add and then send it back. They have far more to lose in this war then we do. No raw materials; no value add.
In the econ classes I teach if you get lower then 85% you fail. That is when the extra credit starts. It is to get the lazy students to actually learn the material. You obviously did not do extra credit.
I see where you are going but the bottom line is who blinks first. Speaking economically, it has to be China since their economic base is only slightly more than one third of ours. The principle also applies during a war; in this case a cold war which China cannot possibly win and President Trump knows it. The Chinese are manipulating their money base but banks are failing even with this. Their President is trying to hold off until the election in 2020 in the hope Democrats will win and in the meantime watching his economy implode. Just my opinion but think China has to come to the table and soon with major concessions or President Trump will end all trade with them and deal with other countries in trade forcing China to make up a huge deficit since we are their major trading partner.
Poor rednecks? I am neither. I am an ASIAN with a college degree and fully support Trump.
Well, I am half-white but our white relatives are super smart - doctors, attorneys, and some of the brightest people in the US - according to their test scores!
MAGA!
Amen to that Lei!!
MAGA!!!
Oh madame! You still are in love with the PIMP PRESIDENT who screwed everybody in AMERICA. He got elected because he was BLACK. What a shame to the whole black community! Now the REAL RACISTS have a fact to discriminate blacks! He was a horrible leader who betrayed America by supporting our enemies. Evidence that he was an Islamic soldier who infiltrated our most powerful position. His advisors are black horrible racists who hate everyone not black liberals. They make morons to follow them. Wake up and remove you cranium from your rectum and educate yourself with what President Trump has accomplished in such a short time. Read the Bible and the Constitution! MAGA 2020
Amen Brother!
MAGA!!
We can manufacture those goods outside of China. Many Countries in Asia have also cheap labor -even cheaper now than China. We could also go there or manufacture them them ourselves. We wanted China to be out of poverty by helping their people through manufacturing and favorable trades. Now. they are biting the hands of the Nation that feed them. Screw China-it’s about time!!
Yeah sweetie, I’m a redneck and I don’t shop at Walmart.
I buy local and I love it!!
Bout time.
Back President 100% with full understanding things will get worse before getting better. POTUS had no choice but to prove “no more”, we will not be taken advantage of any longer. Nor will this Administration betray Americans’ trust like the previous administrations. So those that want to whine because President Trump IS standing up for us, Suck it up - his Supporters Back him 100%! #MAGA #TRUMP2020 #WWG1WGA #QANON
Good job President Trump. The Chinese have been faking the value of their money, they still use slave labor, they steal our patents, the pollute more then any other country and they make junk products. If the USA had built junk like China does USA built stuff would have been cheaper too. Half the screws I use break because they are cheap Chinese garbage.
I would go for not only equal trade barriers but for tariffs based on safety regulations, pollution regulations, patent infringement, gas mileage regulations, and water usage regulations. Make they live to the standards we have to or charge a tariff to compensate to the lack of regulations.
China has stolen trillions of dollars of intellectual property, patents, know how, show how and inventive genius from America. China has trained thousands of Chinese at the best American schools for a pittance of the value of such education/training. China continued to play with the money markets until it was paying next to nothing for American goods. China’s economic gains are 100% the result of America. Trump is the only president to appreciate this. Obama trashed America again.
Go look at the fabric bolts in JoAnn’s large chain. Almost every BOLT OF FABRIC states, “MADE IN CHINA” except for a group of silks that are made in JAPAN.
There ARE fabrics made in the US.
JoAnn’s should be called “MADE IN CHINA” - not JoAnn’s!
My wife hust purchased 3 shirts formerly priced around $18-23
For $3 each
Guess Walmart offering products from other countries has caused competition & wht CHINEESE PRODUCTS costs hsve not gone up or DECLINED
I know my new none CHINEESE shirts made of silk COST MUCH LESS & of higher QUALITY
THANKS TO TRUMP
Get ready for the largest economy boom the world has ever seen. China can price itself right out of existence and american manufactureing will again become what it has been in the past a manufacturing king
If there is no pain there will be no gain. Eat it for a while and then watch what happens to our economy and watch China sink. Trump knows what he’s doing. I trust him implicitly! He’s right about China. We can no longer tolerate their underhanded approach to trade. They have gotten away with it far too long. We finally have a president who has the courage to stand up to this devious nation. It’s about damn time!
Just tell China to keep their SHIT THERE and watch them crumble. Time to take cheating, stealing China onl.