Every single proclaimed trade deal with Japan or China has always led to a false victory when actual application of the agreement is reviewed. This is just another false victory. China holds all the power and money and we pretend like we won something. No one in China wants our shitty cars (made in Canada) or IT anymore, they do it better and cheaper.
The tension here is that the Chinese know if they hold out until the election, there is a good chance Trump will lose and they will be able to deal with a weak democrat. They already own Biden, and probably all the rest of the serious candidates. Trump, to his credit, sees this and pulled out his big gun, the threat of massive tariffs. They are win/win for us because we get to reap the revenues from taxing the shit out of Chinese imports and we ruin their economy. So waiting for Biden has massive costs for China. Who blinks first? Best case scenario for us is that no one does. Then we hit them with the tariffs, which will inevitably alter the global trade framework. We can move away from the disastrous multilateral trade regime, eg WTO, and pursue our own interests.
Ahh but your forget,, whose economy gets ruined first, ours or theirs. Our economy is addicted to cheap imports, mostly from China and with tariffs a lot of stuff jumped up in price tremendously. More Americans are suffering from the tariffs than Chinese. One personal anecdote- was planning a project in Texas that requires steel in the construction. Got a quote for the construction but shortly thereafter the price jumped 50% because of tariffs on imported steel and high cost of U.S. steel alternatives. So we scrapped the plan for now. The firm down there lost our business as well as the jobs for this project to be built. I can imagine this is happening all over the U.S. We have no power in this trade war because we buy billions and then complain it is not fair for our exports without any power. Americans think we are tough now slapping on tariffs but China just goes elsewhere whle we suffer. Ys the tariffs will alter the global trade framework but not the way in which you think. China has already reached out to many other countries for bilateral agreements created multiple markets for exports. As someone who deals with products exported from China, they have many more resources to go elsewhere while U.S. businesses suffer from higher costs and loss of business. There is no simple way to handle this by simply raising tariffs, it did not work in the 1920s and rarely works now.
If the Chinese do not strike a trade deal, then, they just shot themselves in the foot! Other Asian nations like Vietnam, Thailand, Malaysia, Sri Lanka, Philippines, etc. would like nothing than taking a larger slice of the trading pie! US manufacturers will move to those countries if they have not already. Also, the same goods sold by China can be sourced from those countries easily. It is not like cheap Chinese goods or similar products cannot be supplied by other countries and for less? With tariffs on Chinese products, those countries products would now be cheaper to buy. Much cheaper than the Chinese tariff laden products.
This is absolute proof the US is winning this trade war! It only grows worst for China from here! https://www.bloomberg.com/news/arti...g-for-most-of-trump-s-trade-war-research-says
Theirs. But in 10 years it would be ours. They need exports. It creates employment which prevents revolution. Americans will suffer - but much of the middle class seems to be good with this. America will do better if Chinese imports are reduced.
You think a recent trip to China where you saw 1% of the country proves they are getting smoked? China's economy is still somewhat government backed so they can outlast tariffs more than we can survive without cheap imports. The reality is all the things we invented and make well, are now made in Asia or overseas anyway