Yes, a once in 100-year event is happening. Jobs are not being created in the USA as Trump gloated, but the opposite is happening. Lots of jobs are being created in Brazil, Argentina and Russia in agriculture, with China buying more and more agricultural products from these three countries. Another significant agricultural supply source would be Indonesia, which will be added to China's supply chain.
Meanwhile, manufacturing is not returning to the USA, unless backward factories are going to the USA to create sweat shop jobs as we have seen on Tik Tok to give an idea of what Trump is expecting. Modern factories are mostly automated with robotics and AI running them. That is why China is able to produce goods so cheaply. It has nothing to do with subsidies or cheap slave labor. Apple CEO, Tim Cook, disclosed this in no uncertain terms.
More unemployed in USA are joining the queue with all the job cuts in Federal Agencies and still claiming that job creation is strong is unbelievable. We have already seen walk backs on job figures in the past, hundreds of thousands in fact, all of which have been the result of inflated job figures in past months. But USA voters are content with such manipulation, so what can we say. Suffice to say, never try to correct your enemy when he is making mistakes.
If the tariff war does not end, more misery is going to befall the USA voters, as retail outlets are going to be without replenishments after the stock piling during the past couple of months runs out. Which is why Trump is desperate and panicking, even claiming Xi called him to calm the ground. How long can he kick the can further down the road? Even Scott Bessent is telling the Trump administration that the continuation of the trade war by USA is unsustainable.
Chinese exporters are not unduly worried. Most of the wholesale businesses at the World's Biggest Wholesale Centre, the Yiwu International Trade Centre, dealing only with exports, said that they are shipping more to the Global South since the cut off from the USA market. China has all the time in the world to wait and just play the long game to see who blinks first.
Anonymous
2 comments:
It is so ironical that Trump is telling the world that he spoke to Xi many times over the tariffs, without telling us when. What he really tried to con us is that he did speak to Xi many times before the tariff war started, which is nothing extraordinary. And trying to connect that as talks relating to the tariff war is trying to pull a fast one.
And Trump is spinning out of control by saying that Xi calling him is not showing the world that Xi has lost the plot and have to kiss his arse. Who is he trying to fool? Trying to play a psychological war against Xi hoping to lure Xi to call him? A draught player trying to pit his skills against a chess player is a joke.
I think the tariff war is at the point of no return now and Trump is really desperate in the face of warnings by retailers about empty shelves if this goes on. Even Scott Bessant now realizes it is not sustainable.
When Chinese exporters sealed their export market to the Global South to replace the USA market, that is the end of Chinese export to the USA. And like the case of USA agricultural products for the Chinese market, it will be gone forever and never to return.
Xi is not anxious about Trump not calling him. It is Trump that is clearly anxious, even inventing fake news to say that Xi called him many times. This is clearly desperation on another level.
This is perhaps the best time for China to teach the USA a good lesson for being so arrogant and must let the big bully suffer the consequences. What really makes this a great opportunity is the revelation by Rednote to USA voters that they had been missing the great lifestyle that the 'peasants' are enjoying and which had eluded them more and more.
There is a joke going around about Trump's 'Liberation Day' tariffs.
'Liberation Day' means dockworkers are now being 'liberated' from their jobs, with shippers cancelling their cargo unloading at USA ports. This is the first line of job losses already evident. It is now reported to be a 20% drop, but some say that is just wishful thinking, saying that a 50% drop is more likely. The effect on retailers, consumers, manufacturers, food and beverage outlets and small business has yet to take off. Which means more job losses are coming. Are tariffs creating jobs or the other way round?
Just how harmful the tariffs are is now unfolding, but we have not seen the worst yet. This is just the beginning and is only late April. Stock piling has managed to mitigate the situation to some extent, with price rises also evident, but come May, June and onwards, it will be fun to watch.
Post a Comment