So, going forward, are tariffs going to do the same thing over again? Unless the USA can begin to produce the same consumer goods as China, and as cheaply, all that the tariffs will do is forcing USA consumers to buy more expensive products from China with tariffs added or equally expensive alternatives from other sources like the EU. Does that solve the problem of erecting high tariffs against China? Sure, as an added tax it fattens the coffers of the USA Government but is punishing the voters. USA voters have bought into a scam that only Trump can sell to them. China still produces the same products at the same price for sale elsewhere.
The USA is trying to manufacture products in the USA itself, but will those products be cheaper or competitive enough to be sold outside the USA? If not, how are those factories going to survive just depending on a market of about 350 million? Chinese manufacturers of those products have a domestic market of 1.4 billion, with another 1.4 billion in Africa and several hundred million in South America, South-East Asia, Middle East and Central Asia and South Asia, even if India is excluded. USA manufacturers can sell to the Indian market of course, as they are buddy buddies. India is a market that the USA has been cultivating for decades, harping on its population growth, until recently when the reality struck.
Anonymous
China's trade surplus in 2024 was a staggering US$990 billion, a new record. China exported US$3.58 trillion worth of goods, while importing US$2.59 trillion. This shows that China's trade with other countries other than the USA is not faltering or that China is collapsing.
ReplyDeleteWhile China's record trade surplus is touted to be from a collapsing economy of China, USA's trade deficit is touted to be a robust economy. What have i missed? Or are we misinterpreting facts and succumbing to fantasy?