For whatever reasons, nefarious or stupid, prior administrations have failed the nation miserably on this issue. Consequently, the cost to correct this wrong has increased, but must be born.
Trump gut punches China in tariff war
President Donald Trump responded swiftly Friday to China raising tariffs on U.S. goods by ordering U.S. companies to stop conducting business in China, further raising tariffs on Chinese goods and slamming Federal Reserve Chairman Jerome Powell for doing “nothing.”
“Starting on October 1st, the 250 BILLION DOLLARS of goods and products from China, currently being taxed at 25%, will be taxed at 30%,” he announced via Twitter.
“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%.”
The tweets were posted not long after the Chinese State Council announced new tariffs on U.S. goods.
“The Chinese State Council said it decided to slap tariffs ranging from 5% to 10% on $75 billion U.S. goods in two batches effective on Sept. 1 and Dec. 15,” CNBC reported. “It also said a 25% tariff will be imposed on U.S. cars and a 5% on auto parts and components, which will go into effect on Dec.15. China had paused these tariffs in April.”
In a statement, the council reportedly blamed the new tariffs on Trump.
“In response to the measures by the U.S., China was forced to take countermeasures,” the statement reads. “The Chinese side hopes that the U.S. will continue to follow the consensus of the Osaka meeting, return to the correct track of consultation and resolve differences, and work hard with China to end the goal of ending economic and trade frictions.”
Stocks and bond yields reportedly tumbled after the announcement. They tumbled further after the president responded with more tariffs.
But while most in the left-wing mainstream media responded to Friday’s events by spreading more conspiracy theories about an impending recession, one commentator urged the American people to examine the president’s history before rushing to conclusions.
“A bad day or a bad week on Wall Street is not an indication that Trump’s policy is failing,” former Trump administration counsel Jim Schultz wrote for CNN.
“Market volatility is neither a surprise nor a reason to head for the lifeboats. The markets are going to react and fluctuate as the United States and China go back and forth in trade negotiations.”
Repeatedly during the past three years, markets have nosedived because of current news and then bounced back even stronger than before.
“Something had to be done to end China’s unfair practices, and rather than capitulate to the predictions of recession and calamity, we need to stay the course and continue to add tariffs to Chinese goods,” Schultz’s op-ed continues. “We as a nation simply cannot allow China to continue to have its way with our economy.”
Are China’s trade practices unfair, though? Yes, according to CNN’s Fareed Zakaria:
What remains unclear is whether the president’s strategy will ultimately prove successful. The results of his past trade wars suggest that yes, it will eventually spur China into bending the knee.
Thanks to mere tariff threats against Mexico, earlier this year the president successfully forced Mexican officials to agree to a historic deal to assist the federal government in curbing the flow of illegal aliens across the southern U.S. border.
In exchange for Trump rescinding the tariff threats, Mexico agreed it would “take unprecedented steps to increase enforcement to curb irregular migration, to include the deployment of its National Guard throughout Mexico, giving priority to its southern border,” according to a press release by the State Department.
“Mexico is also taking decisive action to dismantle human smuggling and trafficking organizations as well as their illicit financial and transportation networks. Additionally, the United States and Mexico commit to strengthen bilateral cooperation, including information sharing and coordinated actions to better protect and secure our common border.”
More notably, Mexico also agreed to accept all asylum seekers, including those who step foot inside the United States either legally or illegally.
As of now, however, China has shown no willingness to follow Mexico’s path.
In a statement issued Saturday through the nation’s official state newspaper, the People’s Daily, Chinese officials reportedly said they would continue the trade war with the Trump administration “until the end.”
“China will to defend the core interests of the country and the fundamental interests of the people is indestructible, and will not fear any challenge,” they reportedly said. “History will prove that the side on the path of fairness and justice will have the last laugh.”
It’s not clear whether they’re aware the Trump has a history of getting the last laugh.