Trump's Tariff on China - what's the truth?

Poll - Total Votes: 22

Agree with Trump on the Tariff

Disagree with Trump on the Tariff

You can only vote on one answer.

I am confused about Trump's tariff on Chinese goods. Trump declares that the tariffs are absorbed by the Chinese and that it has no effect on the American consumer. American retail companies say that this is not the case. Prominent economists from major banks and universities also say that this is not the case.

Retailers and economists agree that prices on the Chinese goods sold here in America will increase and this means more cost to the American consumer.

Trump says that both the retail industry and economists do not know what they are talking about. He has more expertise than these groups because he is a billionaire businessman and he knows how to make a deal ... and that millions of his MAGA followers agree with him.

I don't think that because his millions of followers support him that this negates what the American retailers and economists are claiming. Nor does it follow that just because one can make deals means that one is an expert with such complex subjects such as trade economics, market supply and international currency exchange.

Has our country finally reached the point that we believe a demagogue over facts coming from the evidence provided by experts?

If this is so, I'm genuinely concerned. This is beginning to take on more and more the aura of 1938 Germany.

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4meAndyou · F

IF Trump can achieve a trade agreement with China, the tariff situation will go away, or balance itself out. That might take a few years.

Right now, the tariffs are tit for tat...punitive on both sides. The Chinese have backed away from a trade agreement because at first, they didn't realize that they would be liable for lawsuits if they continue to steal our ideas through corporate or collegiate espionage. Now that they have figured that out, the people in China who are doing all the stealing don't think it's a good deal, and some of them are part of the Chinese government, like Huawei.

What will happen, in the short term, is that Americans will find other sources from which to buy their goods if the Chinese make it too expensive. Mexico, South America, and India all have manufacturing economies, as well as a few places in the middle east. We will find our bargains where we may. Retailers are not idiots. If they want to buy a Chinese widget and it cost 2 cents yesterday and today the Chinese want 25 cents, they will buy an Indian widget for 3 cents.

Our farmers will be supported by our government in the short term, while we search for other markets, and eventually, if the Chinese want to maintain a healthy economy, they will compromise and the tariffs will be levelled out on both sides. I have heard that China is already suffering.

I think the most important thing to remember, here, is that the United States buys a massive amount of stuff from China. It's huge. If we stop buying all their stuff, they are going to be badly hurt in the pocketbook. A trade agreement might look better and better. The Chinese, however, do NOT want to lose FACE or look weak.

I believe that the previous situation, where the Chinese tariffed US goods to death and only paid tiny tariffs or zero tariffs to import to us, was a very bad situation...VERY bad, and very unfair to us. But nobody wanted to do anything about it. Our businesses were starting to die, our economy was starting to look sick, and China was thriving and getting rich.

You sound very fearful, but I believe that things will eventually balance themselves out, and China and the US economies will both be healthier for it.

samanthasmokes · 36-40, F

@4meAndyou Well done! Thank you for taking the time to post your thoughts. 👍️

SW-User

@4meAndyou "
"I believe that the previous situation, where the Chinese tariffed US goods to death and only paid tiny tariffs or zero tariffs to import to us, was a very bad situation...VERY bad, and very unfair to us" You are missing something a very crucial thing here, If we replace the Chinese with India or Mexico like you said, then the situation will be the exact same but with another country. Nothing changes but the country. If you want to fix the situation, then you're going about it the wrong way. Regardless, the Chinese will not need the U.S. market forever, they're building their own internal market to avoid relying on the West. Soon they will be completely independent.

4meAndyou · F

@SW-User There is a difference, unless I am missing something. The Chinese have a special tariff situation that was negotiated because of their impoverished and "developing nation" status. They are no longer impoverished, and they are well developed, and they are ready to assume "adult" status where trade is concerned.

Your last statement reflects a lack of understanding of what has made China strong. BILLIONS of dollars in trade from exports. EVERYthing in the USA says Made in China. That's a LOT of money that will just disappear from their economy if what you said were true.

Their factories will collapse under the massive loss.

SW-User

@4meAndyou You are correct, China was made strong through manufacturing and exporting. But the Chinese ten-year plan, the plan they are currently on, is a plan to end dependency on the West in all major sectors. They are attempting to create a mixed economy with the technology and expertise they gained from manufacturing everything for the West. Tariffs though a temporary set back, will not affect them in the long run.

As for the first part of your post, I don't actually know anything about that. I will have to investigate that further.