China isn’t backing down when it comes to the trade war. The Chinese government has just raised tariffs on imports coming in from the United States and cut duties on goods from other countries.
In addition to gaining an edge against the U.S. in the trade war, lowering tariffs on products originating from other countries allows China to limit the damage on its economy, PIIE (Peterson Institute for International Economics) said, according to CNBC. Such a move by China has placed American firms at a “considerable cost disadvantage,” said PIIE researchers, who include notable trade expert Chad P. Bown.
American businesses will likely be unable to compete with goods that cost less and will be even more suffocating for businesses. According to research done by PIIE, China’s average tariff rate on U.S. goods jumped from 8% at the start of 2018 to 20.7% this month while China’s average tariff rate on its imports from all other countries fell from 8% at the start of 2018 to 6.7% last November. It has stayed at that level since then.
Beijing has been repeatedly cutting its duties on imports from America’s commercial rivals, including Canada, Japan, and Germany. The PIIE also stated that Americans are suffering more than the media and government are telling them under the weight of the tariffs.
Inflicting such punishment on Americans may be one factor motivating China. A separate motivation may be that it is trying to minimize the harm to its own economy by importing vital goods at better prices from other parts of the world. –Peterson Institute for International Economics
China doesn’t appear to want to back down and neither does the U.S. sticking the American consumer and businesses right in the middle and hitting them where it counts: in the wallet.
China increased its tariffs on U.S. exports to an average of nearly 21 percent, on June 1, 2019. This increase was in response to two areas of escalation on the U.S. side. First, on May 10, the United States raised tariffs from 10 to 25 percent on $200 billion of Chinese exports. Second, on May 17, the Trump administration stated it would soon impose a 25 percent tariff on roughly $300 billion of additional Chinese exports to the United States.
Tariffs are costly only to the country imposing them, and China is no exception. To offset this cost, China made the decision to reduce tariffs toward the rest of the world dealing what is likely a lethal blow to the U.S. economy. All of this is going on while the U.S. continues to threaten tariffs and trade wars with other countries.
F*ck China. I will no longer purchase anything made by the “Red Chinese”. I am fed up with them taking advantage of the USA. AMERICA 1st !
Good ! That will leave me a bigger selection of tools from Harbor Freight.
Don’t believe the globalist propaganda people. TRUMP TARIFFS are starting to work as designed:
This is just the BEGINNING.
China cannot win a Trade War with the US. It is economically not possible. It’s economy and financial system is structurally flawed as I have mentioned to this community for years, and BOTH are linked to the US Consumer. Remove the American Consumer and China COLLAPSES !!!
Did you see those demonstrations in Hong Kong (2 million strong) ??? When the Mainland Chinese economy collapses (necessary to impose Mao Communism again and remove Liberalization) the rioting will make Hong Kong look like a cake walk when the music stops !!!
A prolonged Trade War would shatter the Chinese economy and crush its financial system. If you think the banks are insolvent in the US and corporate debt is out of control ……. you haven’t compared them to the leverage of Chinese banks and businesses.
Recently China had to inject $36 billion (USD) worth of Yuan into its failing banking system to cover losses. Multiply that $36 billion by seven to get a sense of the magnitude of that liquidity injection of Yuan to prop up its banks. That’s a BAND AID for a stomach wound.
It’s not gonna work. 🙂
This is a Bad CIA/ globalist site.
This is a Bad CIA/ globalist site.
We’ve actually been taking advantage of China….living beyond our means purchasing all the goods that we used to make, for a fraction of the cost. And they have been financing our over-consumption and under-production economy buying our debt.
This is coming to and end in a spectacular way. And it ain’t gonna be China that suffers the most.!!!!!
The root cause isn’t China. They didn’t steal that industrial capacity from the US and developed world. It was handed over to them by globalist industrialists and financiers to exploit ultra cheap labor and an absence of environmental regulation to extract maximum profits. Thank the “Free Trade” agreements penned and supported by the Neo-Cons and signed into law by Democrats. Thank naive supporters that worship Wall Street at the expense of Main Street, idiots that spout “Americas business is business” forgetting that said business needs to be in America.
Kevin, I agree and disagree. I think the root cause goes deeper and as I look into the mirror I see one of the culprits. Me, all of us who live our lives as we do. Work, pay the bills, raise our kids, build and plan the next project have taken eyes off the ball. All of us knew what needed to be done. And it would’ve meant a real revolution. Not of words and as I’m doing here, posting a thought; rather, the real McCoy. To take the real stand I should’ve. When I saw it all happening and did nothing but live what I thought was a good life. I don’t hold any other responsible for the bad, the evil I’ve allowed by my own inaction. And sadly, my kids, my grandkids will pay for that.
Unfortunately if said revolution was accomplished through violence the odds are that the successor government would be worse, Napoleon, Lenin / Stalin, Hitler are the norm, our Founding Fathers (in very short abundance today) the exception. Politically the trade deals were a psy ops operation. Bush 41 in favor but has no HP with a Democratic House. Perot makes it an issue taking votes from Bush 41, Clinton of course being the Democrat NATURALLY IS ASSUMED (and he said) to be totally against it. It was not his focal point. Perot actually coming close to really challenging in a 3 way race sabotages his own campaign (he has no real intention of becoming President) but takes sufficient votes from Bush 41 to get a Clinton victory (the master plan all along). Slick Willy pushes through NAFTA, China Free Trade and as a gift to Wall Street obliterates Glass-Steagall on the way out. The ignorant masses love guy. Union people, labor, women (oh he is sooooo handsome). My point is they have the political system bought, the public in a blind haze.
While I’m trying to ignore the historical evidence I’m coming to the conclusion that self government on a scale this large is an operational illusion. The “one man (and woman), one vote” brings in too many lacking analytical skills, overall knowledge and possessing too much insouciance. Talk to people, look at people, they vote, yes them. They may have one or two core issues, guns, God, abortion (for or against), perceived rights or wrongs but they’re overall knowledge is utterly lacking; but they vote. The experiment with 13 colonies and 5 million people may work in an uncomplicated world. With 325 million? These 325 million? In a very complex world, bombarded with well funded propaganda 24/7? We’re damn lucky we are doing as well as we are.
This will only help China to create an alternative economic platform for the world. They have the advanced technology and connectivity, and they are well ahead in creating alternate economic supply lines.
Canada and Australia can both supply resources; Europe can provide goods and services. Instead of a Ford the Chinese will have to drive a Porsche, Jaguar or Renault – boo hoo!!
The Chinese will drive indigenously manufactured autos likely a “peoples car” China style. TPTB won’t facilitate a billion rich people. A billion working people is the goal and when labor is obsolete due to AI and robotics a lot less people. Can’t have “useless eaters”.
The US will not do well in this trade war. They manufacture nothing the Chinese need. China will also accelerate the tech they produce themselves and leave the Goolges and Microsofts of the world at the door step. Food is grown around the world and it won’t take long to switch suppliers. Once done the US will not get those markets back. The price inflation from moving away from Walmart will be significant to the average US household. Labor cost will boost the price of many goods.
“The US will not do well in this trade war. They manufacture nothing the Chinese need.”
A class in basic economics would serve you well. The US does “manufacture” what the Chinese need most: American Consumers. Without American Consumers China is toast.
The Chinese economny has already started contracting. Growth is meager. Businesses are failing. Real Estate is crashing. Chinese auto sales are tanking.
The Chinese have not had a recession in 30 years. Chinese, businesses, banks, and consumers are leveraged far beyond their American counterparts.
Without a Trade Agreement with the USA, China will be in Chaos before the end of the year. 🙂
It was telling for me when Bush Jr made the Patriot Act, and Obama completely failed to revoke it.
Will anyone wake up when we get Elizabeth Warren for President (ughhh)… and she holds onto or even doubles down on the tariffs?
Shit is going on, and it’s not what they tell us is going on in their little pep rallies.
China knew this was coming, China had a plan A plan B a d it more than likely has a plan C thru Z. Notice how when the tariffs first went into effect the Chinese very quickly targeted the farm belt those folks who voted for Trump overwhelmingly? The Chinese have micro targeted goods from areas that support Trump. This is no accident. The Chinese are playing the long game they are not stupid notice how they havent unloaded their stash of treasuries? Makes me wonder if they will as a strategic hit sometime in the future when our economy is in a deep recession. We are headed into a deep recession make no mistake. But who comes out on top is the question this stock market is an anomaly stocks are shooting higher and higher but main streets closing stores and jobs are dissolving at a rapid pace. China still has a GDP double than ours.