Tariffs on China, by Mr. Trump
Did you ever ask yourself what tariffs on China actually means? What Is all about? And please, let me ask you, what do you think Mr. DT think on his tariffs on China?
Back on September 20, 2018. in an interview in the White House he said:
“ We’ve placed massive tariffs on China, and the tariffs have really had a positive impact.’’
Since January, Mr. DT has imposed roughly $250 billion in tariffs on trading partners from China to Canada. He claims the policy is bringing back jobs ‘like never before’.
Many time`s he has mentioned that without tariffs they couldn’t be making the ‘great’ deals that they have been making. But the reality of the matter is much, much more complex.
According to Mr. Pomerleau, an economist at the Tax Foundation, most economists are going to tell you that the tariffs will have a negative effect on US output and are going to be especially harmful to certain industries. Mr. Trump and his administration, on the other hand, will tell you that this is a positive thing that is going to help the US economy.
President Trump has been touting his own horn on the impact that the tariffs have had on the US economy and the jobs it created. Mr. DT also said that in US for now we have more than 1.000 manufacturing jobs, and all of that thanks to beautifully placed tariffs and very tough trade policies.
Well, steel and aluminum mills are roaring back to life, and he is not wrong in that regard.
But, for every job created in steel and aluminum, 16 jobs are lost in the rest of the U.S. economy. As of June 2018, that’s a projected net loss of over 400,000 jobs. So basically, it can be like taking from one American and giving to another, and not quite as Mr. Trump thinks- taking from China and giving them to Americans.
Despite president`s confidence, the auto industry is already suffering the consequences. General Motors have announced that it would be closing 5 North American plants, but also it has been suffering in sales in North America as well as China. In a press release, General Motors said that trade costs are among the headwinds the company is facing.
Ford was also affected. From the company’s perspective, the metal’s tariffs that the Trump administration imposed took about a billion dollars of profit from the company. Add to that, Harley Davidson is quoted, that this trade dispute is going to force the company to shift some production overseas.
Mr. Trump, in his infinite wisdom as a ‘negotiator’ and ‘deal maker’, claims that tariffs are a negotiation tool. He has explained that he would be opening up China and in order to get them, he needs to impose tariffs, and that they have been great. Further, he explains that tariffs are a tool, not a policy, that actually impacts American jobs.
If it was a negotiating tool, these tariffs wouldn’t actually exist yet, and would only be a threat. However, these tariffs actually exist.
Mr. Trump, like real pro influencer, shoot a series of tweets defending his new tariffs against China. He went as far as urging Americans not to buy products from American companies if they manufacture in China.
Well, everyone, including Mr. DT, need to understand that tariffs can still have an impact on the cost of a product, even if you buy it from inside the United States. Avoiding products manufactured in China could be a lot more challenging.