Trump thinks he has the upper hand in the ongoing trade war he started, but the Chinese continue to refuse to blink. China is indicating it’s not only considering skipping U.S. Treasury Auctions but is also prepared for military conflict.
By James DiGeorgia
Commerce Secretary Wilbur Ross revealed that he and President Trump are convinced they were winning the U.S. China trade war during an interview on CNBC yesterday. Ross said … China is “out of bullets” to hit back because its exports to the U.S. are nearly four times larger than what the U.S. sends to China. The Commerce Secretary went on to say …
“Nobody is going to actually notice [prices rises] at the end of the day…,” because the increases will be “spread across thousands and thousands of products.”
The Chinese immediately pushed back against both President Trump’s latest tariffs on Chinese imports and Commerce Secretary Wilbur Ross prediction that Beijing is running “out of bullets’, by raising tariffs on $60 million of U.S. imports into China. China’s Ministry of Commerce said in a statement …
“We deeply regret this. To safeguard our legitimate rights and interests and the global free trade order, China will have to take countermeasures,”
clear from buying U.S. Debt and becoming more cooperative with Russia on
building a much more powerful military deterrence to confront an increasingly
aggressive United States is something the Trump Administration just isn’t
figuring in its prosecution of its trade
war. Instead, Trump and his
administration officials are instead going to continue to escalate this trade
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According to former U.S. trade negotiator Wendy Cutler Vice President of the Asia Society …
"For the foreseeable future, we’re going to be in a tariff world, and we’ll see an escalation," said, formerly a negotiator at the U.S. Trade Representative. "We’re in for a long-haul with tariffs, but eventually there will be a negotiated solution as both sides will end up hurting too much as this tariff war escalates.”
Cutler acknowledges concerns over China’s unfair trade practices have been building for a long time, but while she shares the angst of the administration about them, she doesn’t support the decisions to impose this series of escalating tariffs.
Cutler said at the World Economic Forum meeting in Tianjin, the tariffs have…
… "caught the attention of China and the world, but she believes they are hurting American workers, consumers, and companies."
“Everyone forgets now that the $50 billion in tariffs has only been in place a month or two, and it’s a smaller number. Once you put the $200 billion in place, even at 10 percent, and raise that to 25 percent on January 1, those are big numbers …That’s affecting a lot of imports, both industrial and consumer.”
“The idea that imposition of escalating tariffs the end up on all Chinese imports will lead to jobs and production returning to the U.S. is not likely to pan out, as can be seen from the recent case of Ford….So I think that with time, we’re going to see Americans hurting from these tariff increases more and more.”
Cutler expressed the fear that sides are entering a hard-line period where it’s getting difficult for both sides to find a way back to the negotiating table."
assumption that if you can break these supply chains,
then these jobs will come back to the United States is way too simplistic, and I don’t think that’s the way things are
going to shake out.”
Wendy Cutler’s observation about the seriousness of the trade dispute is evidenced by Chinese willingness to walk away from buying U.S. debt and beginning a new era of military cooperation with Russia. President Trump and his Secretary of Commerce Wilbur Ross are wrong the Chinese have plenty of bullets and the old saying “no one wins in a trade war” remains a maxim.