China’s refused to back off their massive tariffs on US imported goods and refused to “come to the table” and negotiate. Instead they keep adding more things to the list that they won’t export, the latest being special magnets used in Elon Musk’s robots and US fighter jets, etc.
This is a two way street though. The less they will export to us, the more it forces us to either find new foreign sources, start manufacturing these goods ourselves, or both, and by refusing to export more and more goods to us they’re decreasing the trade imbalance between us. The less the US buys from China, the worse their economy becomes, as well. Besides that, China still imports many things from us that they need, not the least being food. Cutting off our food exports to them would hurt our farmers but also cause major political problems for Xi.
Of course, less Chinese imports means less tariff income from China, so there’s less money to fund our government, but this is being offset by the cuts D.O.G.E. is making in fraudulent, useless and excess payouts, along with the firing of thousands on the government payroll and the limiting and closing of government bureaus and departments. The Department Of Government Efficiency’s goal is to cut a trillion dollars of waste in the first year. Between that and the employee payroll reduction, it may well make up for the loss of tariff income or even more.
Tariffs still remain on other nations, as before, and their tariffs against our goods are mostly reduced now, in line with our own on them, directly because of Pres. Trump’s actions. This results in lower prices for goods in the marketplace for us, which has brought inflation back down a notch while maintaining steady tariff income.
How this trade war with China is going to swing depends on how fast America can come up to speed on producing both vital goods and common goods again, and one industrialist, Elon Musk, is up to the task, with a proven ability to get factories up and running very quickly. The more and sooner we start producing for ourselves again, the faster China’s economy will founder and the sooner they’ll be eager to negotiate.
Pres. Trumps constant bait and switch tactics make it difficult to keep up with the action but they do work and they keep his opponents off balance. Many nations quickly agreed to reduce their high tariffs and suddenly Pres. Trump’s high tariff schedule was greatly reduced, except for China.
There’s no doubt that Xi will stay the course, if he capitulates and drops their tariffs against us his career will be ended, along with his life, most likely. Deposed high Chinese government officials have very short retirements. Where the guesswork comes in is what the US Right, represented by Pres. Trump, will do in the face of divided government power. The Left is weakened but they’re far from being down for the count.
We need to remember that Donald Trump is not his own boss, and the reason the Right sometimes acts against something he does or tries to do is because he doesn’t have all the power anymore than Joe Biden did. He’s there to fulfill the agenda of those above him, which is also his own. At least, so it seems and so far.
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