[Hugin]

Trump’s plan = Americans pay surcharge on goods produced in China, but not goods produce in America.

Cruz’ plan = Americans pay surcharge on goods produced in America, but Chinese don’t.

[AndyJackson]

First, American exports to China would no longer have to pay tax, making them tremendously more competitive to sell in China.

Yep. Sure thing. Go with it.

But, there is nothing in the Cruz plan that provides leverage to get the Chinese to back down and play fair. In fact it is a further subsidy to China, who can now raise import tariffs by the same amount and get the goods at the same price as before.

[AndyJackson]

Having given this more thought while out shoveling snow, I have concluded that Cruz's plan is completely idiotic, because it is merely a subsidy, not even to American business, but to China's managed trade policy. Cruz's proposal is tantamount to taking taxes these business would pay to the US and foregiving those, so that China can up its "import fees" by the same amount.

Dumb, dumb, dumb. Cruz did not read the Art of the Deal, clearly. His move is not to establish leverage over China and force them to the table, which Trump would do. Instead he pays them a bribe.

[Pajamajan]

Bookmark.

[Pajamajan]

Bookmark.

[central_va]

responded with tariffs of its own

China already tariff our manufactured exports to China. How many times does this need to be explained.

[factoryrat]

Would this export clause be across the board for all US exports to china? Or just finished goods?

If it applies to only finished goods, it wouldn’t be a bad idea. If it applies across the board (raw materials/minerals/unprocessed agricultural products) them no effin way.