Reply by Tennessee

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Posted on How much will tools made in America cost

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2901 posts in 3049 days

#1 posted 04-06-2018 01:11 PM

A lot of the recently announced tariffs and proposed tariffs are more posturing than actual happenings.

Here’s why…
China has one real problem – that with 1.4 BILLION people, their own economy, (the part that is not making things for North America, Europe and places like Russia), will not stand on its own and keep the country running.
They MUST keep factories that manufacture for overseas shipment, or the country will drop into a recession that some have said would be mass chaos. It might be so bad that the country could see a revolt, something that China has had too many decades of in the last century, with Mao, tribes and other terrible people.

Trump knows this, and he is pushing them since he knows we actually are the main end user of the products made in China. North America, (United States and Canada) represent fully 30% of all sales on the planet, and over half of the items made in China. They just cannot afford to push back too hard or they will have starving millions on their hands if Trump pulled it all out.

So China has done selective targeting of their response, and only about a total of 12 billion, minor compared to the 100 billion plus the President wants to lay on China. They did target red states, in the hope that politically they can use US politicians to change his mind, since they really cannot afford the trade war, and would die much sooner than the US would with an honest to goodness trade war. So he is pushing back with another 100 Billion since he knows China cannot win this.

China just cannot afford to lose overseas manufacturing. It would be the end of China as we currently know it, and millions upon millions of Chinese would die, mostly from starvation, since they cannot even grow enough food to feed their own, less alone have a stand-alone economy.

A deal will be cut, in the favor of the USA. Wait and see…

-- Tsunami Guitars and Custom Woodworking, Cleveland, TN

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