Who is winning Trump’s trade war with China? With Gordon Chang April 15, 2018
Guests: Gordon Chang and Jeff Small
The Income Generation With David J. Scranton
The total US trade deficit stands at 566 billion dollars; which shows that our country imports hundreds of millions of dollars more in goods than it actually exports. As the President, many others see it as largely due to bad trade deals that have been made in the past. Those have created an unbalanced tariff system, which countries impose larger tariffs on our products than we do on theirs.
So what is a tariff? Well, simple put a tariff is a tax or duty charge and for example, if we’re paying a 20 percent tariff to export a product, but let’s say only charging 2% to import the same product obviously that’s a huge financial advantage for the other countries export industry over ours. Although, reforming the international trade policies, re-bouncing the tariff system could help us to lower that sky-high trade deficit and add to our own GDP growth. This, of course, is our President Trumps goals. In the known uncertain terms he has singled out China as the main beneficiary of unfair trade policies and call for new tariffs on $50 million Chinese imports. Specifically, he has imposed new tariffs on Chinese steel and aluminium, and call for tariffs on over 1000 other Chinese imports including flat screen televisions, medical device, aircraft parts and batteries. He has also blocked Chinese takeovers of U.S companies in order to tariffs against other countries.
Now, many counties have since retaliated, including of course China, which is called for tariffs on120 products imported from the U.S. Many products on the list come from states that favoured the president in the 2016 election. That’s significant because if President Trump, it gives him incentive to try resolve this whole issue without hurting, farming and manufacturing economies in his based states. Taking queue from China, the European Union has also threatened to hit back which would hurt the President the most. They have called for tariffs on $3.5 billion worth of American good including certain brands of motorcycle, blue jeans, and yes even whiskey manufactured in red states. As all of this has unfolded in the past six weeks, Wall Street has reacted with interchanging doubts of panic and then relie
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