Posted on 10/06/2018 4:27:14 PM PDT by SpeedyInTexas
While the White House is progressing on trade deals with allies including Canada, Mexico, Korea and Europe, its dispute with China looks increasingly intractable, with tariffs between the world’s two largest economies likely cemented in place for years.
In other trade fights, President Trump used tariffs as leverage to reach deals. Threatening car tariffs helped convince Canada and Mexico to concede to U.S. demands for a new North American Free Trade Agreement, the president boasted. “Without tariffs, we wouldn’t be talking about a deal,” he said Oct. 1 in the Rose Garden.
China is different. Tariffs aren’t simply a negotiating tactic for the U.S., but a way to change economic incentives.
(Excerpt) Read more at wsj.com ...
"The Trump trade team believes U.S. firms need protection from a predatory Chinese state, which Mr. Trump says coerces U.S. companies to fork over technologies and subsidizes Chinese firms to expand globally. Using tariffs to make it more expensive for companies to export from China, Trump trade warriors figure, will encourage foreign firms to take their know-how out of the country."
"They include reducing the role of state-owned firms in China’s economy, allowing U.S. firms to get majority stakes in businesses in China and dropping pressure on U.S. tech firms to reveal their secrets. These are the types of changes that China finds most difficult to accept."
"A longer trade war would also force foreign firms to reconsider their global supply arrangements"
"Even if Mr. Trump should lose the 2020 election, he figures, tariffs could remain in place."
"“Both parties are anti-China, and that’s the way protectionism works,” he said."
Yuge problems may take longer to resolve....
Stealing technology, ignoring patents, corporate espionage—all these things must be addressed in addition to tariffs.
I’m cool with it.
I hope, for the President’s sake, that the author is wrong and that a year from now this thing will be in the rear view mirror. Most people in agriculture are being patient right now, but if nothing has changed a year from now or before 2020 this part of the base is going to start feeling like they’ve been kicked to the curb.
We are effectively at war with China and Tariffs are a tactic and weapon. Before the advent of Donald Trump China was winning that war by sucking up all our tech and science with its trade conditions.
So...I was thinking...
Clearly, the Chinese are waging economic war against the West.
My question is, are the Chinese also doing this to this Russians? Their natural path of expansion is into Siberia.
Russia has the most nukes, but China has the advantages on economic might and population.
Reminds me of “The Bear and the Dragon” by Tom Clancy
I believe there has been a lot of directed Chinese emigration to Siberia for some years now. While Russia worries about the Moslems the Chinese are doing it to them.
bfl
The good thing about agricultural products is that they are basically commodities. If the Chinese start buying them elsewhere, the American products shortly backfill for the stuff going to China. It doesn’t change global supply and demand much.
I expect the tariffs on China to ramp up quickly around 1 January, and stay there for years. Like the article says, tariffs were a temporary negotiating tactic with our allies, but it is different with China. China is an evil force in the world, which is not going to just turn good. People have been waiting for that for twenty five years, and China has only become worse.
We need to divorce our economy from any dependency on them, for strategic purposes. That is why the tariffs on China will likely be in place for years.
“We are effectively at war with China and Tariffs are a tactic and weapon. Before the advent of Donald Trump China was winning that war by sucking up all our tech and science with its trade conditions”
Trump should get a yuge economic team together, especially the manufacturing sector and set up a week long tour of South East Asia. Vietnam Cambodia, Tailand... Letting them no we are open for business. Not high end items, but the cheap toys and dollar store items. It will wear the Chicoms down. Electonics wise Americans need to suck it up and pay another $50 having their HD TV’s being built somewhere other than China. Starve the beast, or be their slave.
Immediate double all tariffs. If they are currently 0 make them 100%. Screw China. We don’t need them to build their army with all those Walmart dollars. I hate Chinese crap. Please someone build it anywhere else.
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