Trump was gloating just days ago about sticking to his stand of not reducing the 145% tariffs against China. A day or two after, he changed his tune and claimed that 80% would be suitable tariff for Chinese goods and is up to Scott Bessent to do the necessary. Would Scott Bessent really be bold enough to reduce his tariffs from 80% to 30% without his concurrence? Why had Trump suddenly caved in by falling flat for a 30% tariff against China and for 90 days only?
The whole thing about the celebrative mood after the so-called success of the talks over the tariff reduction and the stock market shooting up over the news is a tad too early. This is a tactic I am apt to believe is Trump trying again to manipulate the stock market. Those of the rich friends of Trump and his family would probably have bought into the market during the lows of the past weeks, and with his 65% reduction initially giving a discreet signal that it is going to rise, those cronies and family members will now be reaping in billions. What is going to happen 90 days from now? Another manipulation will come after those billionaires have unloaded their stocks and waiting for another crash to buy in again? Poor guys like us can only watch on the sidelines how the super-rich made their money.
Having said that, I think the Chinese have learned a profound lesson not to trust Trump's tariff reduction too much. The tariff war is not over yet. There are pertinent reasons why Trump's tariffs are crumbling against China. First was the low take-up of the bonds auction that global investors are avoiding, and that is spooking the market. The second reason is that Trump is trying to prevent the empty shelves inside retail outlets from getting worse over the coming days and weeks. He is hoping for more Chinese ships carrying products to dock at USA ports to provide retailers with a lifeline and keep truckers and dockworkers employed. In essence the reduction of tariffs from 145% to 30% had little effect on Chinese manufacturers, as importers and consumers are going to bear the tariffs anyway. This was a question thrown by a congressman who asked Scott Bessent - 'Who is paying the tariffs' and when was cornered he went into a gibberish talking about China manufacturers suffering and avoided the question altogether.
Suffice to say, Chinese manufacturers should be cautious about moving product shipments back to USA ports with the 90 days truce in mind and should continue to do more business with global south countries and forging new markets. China has learned some lessons in the past by keeping away from relying too strongly on particular markets that have an agenda to do China in.
On another note, I wanted to talk about how China discovered USA soya beans using fake country of origin as being grown in Argentina and Brazil, being sold to China under the radar. Argentian and Brazil are furious that the USA is destroying their Chinese market with such underhand tactics. They are now working with China to tackle the problem. This shows the level of desperation that farmers in the USA are doing without the Chinese market.
Anonymous
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In the eyes of everyone, on most MSM and social media as well, it was a huge caving in by Trump to China over the tariffs, despite all his gloating about how tough he is acting in the face of falling demand for USA Treasuries, idle cranes at ports, empty shelves at retail outlets on top of truckers and dockworkers being laid off. The strange thing is that job creation, as reported in the USA, is still touted to be bullish, something that defies logic. Anyway, all credit goes to Trump when things look good, but Biden will be blamed when things go bad.
The tariff preoccupation also diverted attention away momentarily from the agricultural sector that suffered a double whammy. The deportation of undocumented immigrants deprived farmers with cheap labor and the gradual loss of the Chinese market is crippling the USA farmers. How desperate they are now is shown by the fraud that is being committed by soya bean farmers in the USA trying to enter the Chinese market by documenting their products as originating from Argentina and Brazil and exporting them to China, hopefully undiscovered. The Brazilians and Argentinians want no part of the scam and are working with the Chinese to stamp out the fraudulent practice.
China just turned away 300,000 tons of soya beans originating from USA which were documented as being from Argentina. This was found out by the Chinese authorities when they tested the protein contents of those beans from USA sources that were found to be dramatically different from those traditionally originating from Argentina. This line of fraud is now being cut off and USA farmers now have no way to export soya beans to China stealthily without being discovered. Brazil and Argentina are not reliant on USA soya beans anyway and will not be a party to the fraud being carried out by the USA. They have a big stake in the Chinese market and are not in any way going to cut their noses to spite their faces.
Dotard Trump and the Daft Hillbilies and the Rest of the Daft World thought that the UAssA with her 30% against China's 10% is the winner.
Xi main Agenda is that to his exports of their 15% of GDP earnings essiential goods that the Americunts must have moving again.
Why bother their Tariff of 30 or 50% aa long as thd demand is there thr Hillbilies Americunts are going to pay for them NOT China.
China just token 10% is just for show. Maybe on their products that may compete with their local industries and also those fake inflated jack up prices goods that are NOT essiential to them.
China alreday divisified her essiential imports from other countries NOT more from the UAss.
So jus6 kept her Econmy moving especially those that affected the SME companies.
Let the Americunts rejoiced in.their Superiorty complex that they had won the Trade War!
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