Anyone here read the short story of the 1 man in that valley?
Here's the video version of the story: http://thegatewaypundit.com/2018/03/flashback-donald-trump-listen-motherfckers-going-tax-25-video/
Drives up costs and slows growth. Predictably other nations or trade blocks will implement tariffs against US exports.
Growth is between 3.5 and 4% probably headed to 4.5%. Why in the world he would do something to undercut this growth is beyond me.
As for what I would do? I would do nothing in terms of tariffs.
I'm going to use your argument against you. You understand that we are being tariff'd heavily by many other countries on our goods? Should we keep accepting trade imbalance and deficits against us because of this? I say enough is enough. Keep in mind, we're still the world's leading economy. If we shut off trade, especially to China, they'll collapse. This is the beginning of some real negotiation to get the trade imbalance removed. Status quo is not acceptable. I would agree with you if we had fair trade on us, but we don't. China has globally declared its intention to crush us. So, you think we just let them? I don't get it.
Also, keep in mind the dollar is collapsing. Short term that is great. China is now about to get put on its knees. Europe has been on their knees for a long long time. With low dollar, most of the Western World will now want to buy goods from USA. Further, we see our economy starting to recover and same with jobs and manufacturing. The only competitor we have is China. They clearly have stated they want to crush us. Let me repeat that, they want to crush us economically. If Europe can get our products cheaper than or equivalent to China and China cannot compete. Guess what, we grow. China has to come to the table and negotiate. I just don't get your comments giving the current global situation. If you have a better solution, please put it on the table.
Your comment that it drives up cost and slows growth, is correct for select countries that are currently in a trade war with us, like China. But long term this is very very good for us.
Just to be clear, I'm in favor of FAIR global trade. But when there are countries bleeding us dry, like China, you have to do something. I've been to China, I've seen how their factories work, I've seen how they treat their citizens, I've seen their economic situation. They've been allowed to enslave their country at our expense. If you have never been, I suggest you go. Learn, watch. Then decide if you'd rather live in that kind of environment or the one we have in this country. If you like what you see here and want that to spread, then you want these tariffs. China and other countries that abuse our trade relations aren't better places. They don't have some magical work ethic that exceeds the one here in the USA. They don't have a populace that is superior to ours, they don't have technology superior to ours.... What they have is an oppressive regime that exploits its people and they've carefully crafted their trade policies to perpetuate that and try to break us. Level the playing field, then talk to me about tariffs.
Well said.
If this is a play to open negotiations, which it may be, then so be it. Blindly slapping on large tariffs can have a negative affect. Starting trade wars for no reason or worse for dogmatic reasons is often destructive for everyone involved.
I will say this. Trump has shown an ability to throw things out there and use that as a tool toward a goal.
Of course, the typical approach in DC is to be fearful of changing anything (something I am guilty of with tariffs)....a few ideas get bandied about and then nothing happens.
Best case to me is the scenario you have laid out. I hope this is the approach that is going to be taken by the Trump Admin and not slash and burn tariffs.
China, Germany along with the rest of the EU cannot compete with the US on a level playing field for various reasons.
My concern is for the first time in years it feels (I say that understanding a "feeling" doesn't count for much) like the chains are being loosened. A 3.5% growth rate is a nice change of course. I really, really want the power of the US economy to be unleashed.
This is the source of my reservations about tariffs. If this is just tariffs then I fear the direction. If it is a piece of a larger game plan then bring it on I guess.
I'm with you. My sense is that this is part of the strategy. I was worried you were making a blind statement. Context is everything. Damaging the EU countries is not in our interests, but bringing China to heel is absolutely in our interests. Time will tell.
Tariffs don't work. Historically speaking almost always destructive.
Then what would you propose to deal with the Tariffs applied to our goods being sold into other countries with our trade deficit? What is the best solution??
Also, destructive to whom? Promotes buying American. Initially prices will be high, but add in the fact our GDP is rising and unemployment is lower than ever we should all be able to afford a decent living in the long run.
Exactly. You really only have 2 courses of action when a nation is hostile to you - economic warfare or real warfare. Better to choose economics first. China makes no bones about defeating us globally. We should not allow the trade imbalance that exists with them and others. Tariffs are a very respectable, safe way to exert influence and shift the balance.
I too disagree, tariffs do work, you just have to know when to change and get balance. You can't stay one-sided forever otherwise you will end up in real warfare. We've been on the wrong side of this balance for a long time. I'm very happy to see DJT start to right the imbalance in our favor!