Monday, June 04, 2018

Politics Talk. If this is a trade war, the United States will win

via American Spectator..
Donald Trump is following through on his threat—or promise, as his voters see it—to impose steep tariffs on foreign goods in the name of supporting American industry, starting with levies of 25 per cent on steel and 10 per cent on aluminium imports. Allies and neighbors that had been granted temporary exemptions are now set to feel the brunt of the tariffs: Canada is America’s leading source of foreign steel, and Mexico and the European Union will also feel the pain. They’re all threatening to retaliate, and the press is calling this a trade war.

If this is a war, it’s one the United States will win. The thing to keep in mind when reading about retaliation is that the US has trade deficits with all of these countries—as well, of course, with China, which is not one of America’s leading sources of steel but whose state-subsidized steel industry is responsible for depressing prices globally. Because the US buys far more goods from these countries than they buy from us, they stand to lose much more in a tit-for-tat over tariffs. How can China or Canada put tariffs on American goods that they don’t actually buy? They can’t, and what they do buy, while not insignificant, pales before what Americans buy from them.
Story here. 



When Americans say that we've been carrying the rest of the world's economic growth this is what they're referring to.

This is what I was talking about when I asked foreign readers to explain how these tariffs would affect THEIR countries.  They went on and on about how it was bad for America.  They went on and on about how it was bad for the globe, but they never explained why they would "crush" us if a trade war actually started.

Don't get me wrong.

I know and expect a bit of pain.

It's normal.  Change does not come without a bit of pain.  Whether in the gym or personal finances or even national finances.

My point is simple though.

If Trump is bold enough to follow thru.  If somehow he summons up the courage of his convictions and stays the course...and if the American people don't turn pussy and start whining then we can win big.

That's my opinion. What's yours?

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