Following Debrief President Trump Announces 10% Additional Tariff on $300 Billion of Chinese Goods…

US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin returned from two days of talks in Shanghai on Thursday.  After debriefing President Trump on the results the president announced a decision to apply a 10 percent tariff on $300 billion worth of Chinese products.

This announcement would answer the question of whether the Chinese were willing to restart discussions from the previous point of contention.  Obviously they are not.

The Wall Street financial/investment class will go bananas.  U.S. based multinationals who have invested massively in Chinese manufacturing are apoplectic.  The ‘Wall Street’ -vs- Main Street battle now enters a new phase of confrontation and adversarialism.

As we have discussed, President Trump consistently implied he did not see how any deal with China is possible unless they were willing to fundamentally restructure their trade position. It has been clear -validated by the G20 outcome- that President Trump is not going to accept anything less than a full and complete structural change in the U.S. trade position with China. Lighthizer’s severe compliance and enforcement clauses, specific to each unique trade sector, are non-negotiable.

There was always only a very small chance a trade deal with China will be reached. The reforms within the original Lighthizer and Vice-Premier Liu He agreement were antithetical to Beijing. Chairman Xi Jinping and the communist politburo rejected them.

For Beijing the compliance and enforcement sections within the agreement were too severe and did not allow China to retain control over the trade terms.

The agreement was rejected.

President Trump understands Chairman Xi is looking at this as a zero-sum position. As we stated earlier, it’s was not a matter of “if” Trump would apply more tariffs; it was always a matter of “when” Trump would apply the tariffs.

Price inflation is low because manufacturing economies (EU and China) are devaluing their currency, and subsidizing their industries (China), in an effort to avoid Trump’s trade policies (tariffs). Their efforts increase the value of the dollar and we are importing deflation.  As a consequence of those factors, and the high value of the dollar, any tariffs on Chinese imports will not raise consumer prices.

The .25 point lowering of the federal reserve rate did nothing to lower the value of the dollar.  Now is the perfect time to hit China will larger tariffs.  There will be no U.S-China trade deal unless Beijing agrees to the compliance issues.

This entry was posted in Big Government, China, Decepticons, Deep State, Donald Trump, Economy, Hong Kong, media bias, President Trump, Uncategorized, US dept of agriculture, US Treasury, USA, USMCA. Bookmark the permalink.

158 Responses to Following Debrief President Trump Announces 10% Additional Tariff on $300 Billion of Chinese Goods…

  1. Publius2016 says:

    Hey China, Get with Western Philosophy of Private Property Protections or live in a world of your own making! Stealing is wrong!

    Liked by 13 people

    • Bill says:

      Hmm. Communism. No stealing going on there, is there? And a communist would say that stealing is right! Just look at all the leftists in America, today, wanting the government to take from earners and give to the less inspired.

      Liked by 9 people

    • Communists are just “SUSTAINABLE SOCIALISTS”.

      They found the best way to avoid running out of Other People’s Money
      … TAKE IT. 😁
      … Guess how easy it is once you’ve OUTLAWED GUNS. 🤫

      Liked by 9 people

      • Daniel says:

        The Chinese Communist leadership are NOT communists. They are elitists who have more than their other “equals.” They live on unearned wealth, power and luxury. Communism is just the lie they told the people who helped them get power. Now it is the memory of Tienanmen Square which keeps most people in line.

        A true communist would practice what they claim to be their ideals. They exist in stark opposition of any suck communist ideals.

        Liked by 3 people

    • USTerminator says:

      President Trump, let put China and Traitor multi-national companies on meter tariff. By Sept meeting, if China does not agree trade concessions then 10% on $300B will go to 25% on Oct 1. Then after that 5% increase every month on entire China import. US will grant tariff increase waver to any company who will relocate China imported to make in US within 1 year. If company fails to live up to agreement then they will have to pay all the tariff due + 1000% break up fee. “if you want to cheat, you can but I will bankrupt you”

      Liked by 3 people

  2. Cha Ching$$$$, that noise you hear is the ATM machine operating on overdrive sucking the money China stole back into the US bank account. Go POTUS, we are going to need a fatter piggy bank!

    Liked by 18 people

    • John Bosley says:

      We have one already.
      It’s called Fort Knox.
      Time to get rid of the gold plated tungsten bars and replace them with the real stuff.
      Go baby , go.

      Liked by 1 person

  3. MakeAmericaGreat says:

    As you said, excellent timing by POTUS.

    China doesn’t want a deal. They want to ride things out until 2020, and try to give themselves fake leverage (we’re doing a deal again! No we’re not!) and hurt POTUS as we move towards the election.

    POTUS knows it’s all nonsense. As long as Jerome Powell does his job, I don’t think this will affect the markets or the economy much. But it’s possible that if Wall Street freaks out on this latest move that the Q3 numbers could be less than expected. We’ll see.

    Liked by 9 people

    • gustheairedale says:

      Q3 numbers will be fantastic where they count meaning some hits on major importers (cloths, retail) but major increases on wages, optimism and employment. Manufacturing will continue to increase. To me its the noise and panic caused by not understanding where this is all leading that is driving the old school (globalists) crazy! A lot of different TDS syndromes going around. China is probably witnessing their own strain about now.

      Liked by 3 people

      • KingBroly says:

        The Wall Street panic/naysayers drove down Q2. If they were ignored, Q2 would’ve been higher. Q3 is going to be much higher because they’ve been driven back until now. They live in their own bubble, and it needs to be popped.

        Liked by 2 people

    • dallasdan says:

      I respectfully disagree regarding the impact on the equities markets. Look at the primary index charts for yesterday and today. Those cliffs correspond to China news.

      As SD stated:
      “The Wall Street financial/investment class will go bananas. U.S. based multinationals who have invested massively in Chinese manufacturing are apoplectic. The ‘Wall Street’ -vs- Main Street battle now enters a new phase of confrontation and adversarialism.”

      Unfortunately for most of us here, we are “Main Street” investors who have been and always will be the pawns of the institutional and high portfolio value traders. They will make billions as the markets fall with carefully planned and executed short positions and downside oriented options, while the common investor will absorb losses.

      There is nothing fair about Wall Street.

      Liked by 3 people

      • MakeAmericaGreat says:

        The markets will react, sadly. And it’s up to Powell to support POTUS in the actions POTUS takes.

        I do not think we’ll have the large ‘crashes’ type event that has hit the market before, however. The rally was on today until the tariffs news.

        China, in my mind, absolutely wants to hurt our markets heading into 2020. POTUS has to do what he has to do (more tariffs if China plays around). But I still think the markets will be ok if Powell makes the necessary cuts.

        Of course, if Powell does not make enough cuts, then the markets will not be all right.

        The reason why I don’t think there will be as much strain on the markets from now moving forward is that China has played out most of its hand. It can’t do a lot more. And I think many people already realize that China has no interest in a deal at this time.

        Liked by 2 people

        • dallasdan says:

          We agree there will be no market crash over China’s avoidance of a trade deal and the resulting tariffs. However, a significant decline is possible, and it would be in both China’s and the deep state’s interest as a damper on the President’s re-election campaign.

          I feel reducing the fed funds rate was more a result of acquiescence by Powell and the Governors than a significant show of support for the President. The favorable economic indicators, coupled with the President’s badgering, carried the day, IMO.

          Throughout the niceties exchanged between the President and XI, the clarity of our countries being enemies has not been lost on any astute observer. A genuinely fair trade deal was never a realistic objective.

          Now, more than before, I believe Xi is fully committed to complicating and damaging the President’s re-election campaign. Given Xi’s lack of good options, I anticipate he will do his utmost to damage our economy and create mischief wherever possible on the globe. You may be underestimating him.

          Liked by 3 people

          • MakeAmericaGreat says:

            I may be. I do agree that Xi is fully committed to defeating POTUS in 2020. All in.

            I also agree with you on Powell. He is no friend of POTUS, or has not shown that yet.

            There is plenty of risk, still. Hopefully it can be minimized to keep the markets afloat before the election. Powell must do what he has to do, in order for China’s and the Deep State’s machinations to fail.

            Liked by 2 people

  4. FL_GUY says:

    President Trump, looking out for We the People and the USA; NOT the stupid globullists and elitists robber barons!!!! Go TR on them Mr. President!!!!!

    Liked by 11 people

  5. bertdilbert says:

    I think Trump is trying to keep China just below the boiling point. 10% is clearly only 10% to show the Chinese things can get worse. Still arrows left in the quiver…. Everyone sees there are more arrows left in the quiver, keeping the level of uncertainty high. Money seeking it’s own level.

    Liked by 10 people

    • MVW says:

      I was hoping for a 10% tariff. I love Trump. Look, China will never abide by their agreement no matter how stiff the and ironclad the penalties. The only way to deal with this bunch is to do the straight forward 25%, but boil this frog slowly. This 10% should accelerate the exodus from China.

      We will hopefully be at 25% soon, I am hoping, then break off the talks and move on to Europe & Great Britain. Maybe Great Britain first after no deal, hard, Brexit.

      OAN is controlled opposition and doing its best to throw shade on the 10% tariffs, claiming retail price hit. All I can say is that the manufactured products from China have been 30% fail right out of the box, with the rest dying soon after. It is crap.

      Liked by 7 people

  6. Perot Conservative says:

    I believe yours truly stated the moveS twice.

    1. Raise the tariff 5-10% on the second $300 Billion.

    2. Additional motivating factor: China hasn’t helped us with fentanyl – kind of what Britain did to China with opium?

    Lose-lose for China. They don’t buy our ag products, and they fork over new tariffs. Ouch.

    Now, will they attempt a way to save face?

    Liked by 2 people

    • TheLastDemocrat says:

      If it is true that China has failed to act on Fentanyl plan, 6hey just pissed off the wrong guy.

      China not stick8ng to an agreement: why should they? USA makes agreements with many countries and does nothing when the other party fails to stick to a deal.

      We were supposed to have those inspections in Iraq after Gulf War I. Then we got jerked around. The various countries fail to pay into UN. Etc. Etc.

      China would be an international laughing stock to be the first chump to avtually abide by an agreement with USA.

      Good news: when you are at this point, you take stock of your sitiation and act unilaterally until the other party comes around and decides to play nice.

      Liked by 1 person

      • ann says:

        The educational value of POTUS tweets and speeches is incalculable,

        I never thought to see LIVs, a hence unlikely audience, incensed by federal monetary policy. cannot wait to hear him open up about China, MFN status and the yen.

        He marches boldly into the great void of informed discourse to proclaim Truths, swatting aside the buzzing hornets.
        His resonant words echo, dwarfing the hisses of punditry, featured in shellshocked clusters nightly on huge MSM panels.

        Our ire in 2020 will be rightly aimed at uniparty politicos, for it is they who enabled a global estate sale of our industrial base, rail, ports and outsource breadwinner jobs.

        As President Trumps says, don’t blame China or the EU for being economic predators, economic policy is integral to national defense.
        Our own governing class united to push open wallet policies, conflating Wall Street/ globalist ripoffs with a peculiar “international levelers” ’ Utopian philosophy.

        Like

    • grlangworth says:

      They are buying beaucoup pork from Aw Canada.

      Like

    • Reminiscent of Bugs Bunny: Chairman Xi to PDJT: “May I have another lump?”Why sure, BAM! “Thank you honorable President.”

      Like

  7. Shep Smith disagrees: we have all out trade war and we all will pay….
    The fakers at Fox News are going to be talking down the economy non stop like the Wall Street Journal.

    Liked by 3 people

    • SharkDiver says:

      Most people don’t watch financial news, but they know how much they are paid and how much they pay for products. So long as inflation stays low, people will just continue to tune out the MSM scare mongers.

      Liked by 3 people

    • The Boss says:

      While Shep Smith was being a horse’s ass, The Boss was out in the market scooping up some good deals which presented themselves as institutions predictably over-reacted to a non-event.

      Liked by 4 people

      • Muthaucker says:

        Yup…buy low sell high…keep it on the downlow.

        Like

        • ristvan says:

          In this market it is also possible go sell high then buy low—short positions.

          Liked by 4 people

          • Bert Darrell says:

            It’s amazing to watch how easily markets are manipulated via rumors and mischaracterization of the news. So many people are playing the stock markets without having a clue. Yesterday’s reaction to the 10% tariff applied to China’s junk exports to the USA was a great opportunity to scoop up some solid companies that were being thrown out without a valid reason and as a knee jerk reaction to a move that benefits the American economy and further encourages the moving of companies to the USA.

            Meantime, Chinese politicians keep on playing roulette based on hopes. They should know what the odds are for roulette gamblers.

            Like

    • Dennis Leonard says:

      You forgot CNN and this horses***,
      “Tariff Man is back, and American consumers will pay for it

      By Paul R. La Monica, CNN Business”

      Like

    • techherder says:

      Bloomberg has been talking RECESSION RECESSION RECESSION for months now 😃

      Like

    • grlangworth says:

      This is rash. Their ignorance will be detrimental. But then the WSJ is hardly helping them — a supposedly financial analytic gone doctrinaire.

      Liked by 1 person

  8. Chip Doctor says:

    I love PT’s bare knuckles approach with all of his opponents. Whether China, Baltimore, Dems etc, he just keeps turning up the heat under the boiling frog. It is fun to watch after decades of corrupt and weak “leaders”. This is America first at its finest.

    Thankful for President Trump’s combination of wisdom and strength.

    Liked by 14 people

  9. Perot Conservative says:

    3D question here: how do we deal, long term, with China routing steel and aluminum through companies they own in Vietnam, South Korea, and elsewhere?

    They have huge steel capacity, #1 in the world. Is it a given it will always be there?

    Will USMCA bring a substantial new amount of steel making home?

    Liked by 1 person

    • sundance says:

      Transnational shipping is why the steel and aluminum tariffs are global.

      Any nation that wanted to get out from under those world-wide tariffs had to agree to not participate in transnational shipping from China.

      The U.S. steel and aluminum industry is already resurging.

      Liked by 22 people

      • rashomon says:

        I have said this before on this site. When you can buy scrap in the U.S., ship it to Asia, process it, ship it back to the U.S. and sell it cheaper than our local markets (pick Detroit, for example), something is being subsidized by those countries at a horrendous cost that our taxpayers are underwriting some-way-or-another, gonna getcha getcha getcha.

        We might be in for some pain, but no way it reaches the level we will undergo if this Hollywood economics continues.

        Sundance does an excellent job of unwinding this age-old farce. Pass his work on to all.

        Liked by 10 people

      • Perot Conservative says:

        Yes, I know we have a resurgence. But for an economy our size, we could probably, easily, double or triple production.

        Does anyone here know how much steel and aluminum we manufacture, versus import?

        A gentleman in the field told me there is no steel manufacturing on the west coast. The cost of shipping iron ore over the Rockies one issue. Probably whacky environmental laws, labor costs, and raw materials also issues. I know the Bay Area was ringed with shipyards during WWII, and I believe some steel manufacturing. Kaiser Steel was one.

        I pulled up a 2010 steel map that showed steel production almost exclusively in the northeast and south. (I didn’t understand the EOF and BOF plant designations.)

        Here is an informal list I put together of new steel and manufacturing. A bit dated. Some might be modernizations.

        1. New FoxConn $10B plant in Wisconsin.
        2. New aluminum plant in Ashland, KY (Appalachia)
        3. New smelter in Hawesville, Ky..
        4. Alcoa new smelter, Indiana
        5 & 6. New Nucor and Commercial Metals will build new mills in Missouri and Oklahoma.
        7. Samsung new plant, South Carolina.
        8. LG Electronics, Tennessee, 350 acre site (washers)
        9. JSW, Ohio (steel).
        10. JSW, Texas (steel).
        11. US Steel, Illinois.
        12. Big River Steel, Arkansas, $1.2B expansion
        13. Schuff Steel Company, South Carolina, expansion
        14. US Steel $1.2B modernization / expansion

        Please tell me if I missed any.

        Liked by 5 people

        • TheLastDemocrat says:

          Birmingham AL I believe (Hanna, etc. ) slowed but never stopped.

          They are on I-20 / I-59.

          Like

        • felipe says:

          Primary steel is produced by two processes: open hearth furnace (OHF) and basic oxygen furnace. Energy optimizing furnaces (EOFs) are used to produce steel from scrap steel.

          Like

          • In the book Goid to Great, they use an American steal company with smaller plants in Alabama as an example. It may be Nucor.
            As we learned in retrospect, especially from Circuit City (whose best execs moved on to CarMax) it’s all about your leadership teams’ skills and knowledge. If Nucor has the same leadership team, or people of similar talents, they willl revolutionize the industry and possibly be subject to a government review (monopolies) after they acquire everyone else.

            Like

        • highdezertgator says:

          “Evraz Rocky Mountain Steel is the number one steel rail producer in North America and already has three mills in Pueblo.”
          https://www.krdo.com/news/new-steel-mill-may-be-built-in-pueblo/819262270

          PUEBLO, Colo. – Evraz Rocky Mountain Steel is the number one steel rail producer in North America and already has three mills in Pueblo. Now, the company is looking to invest at least $200 million into building another mill or replacing one of the existing mills in the Steel City.

          Evraz announced plans to build a 21st century rail mill bringing in hundreds of well-paying jobs with it. The Pueblo Economic Development Corp says it would bring in 1,000 jobs that pay between $60,000 to $65,000. However, the company is still deciding where to build the mill. Colorado is competing against other states.

          Jeff Shaw the president and CEO of PEDCO says the new steel mill would be unlike any other, “if they move forward on it, to our understanding, it would be the most technologically advanced long rail system in the world,” says Shaw.

          Liked by 2 people

        • seekingthetruth2 says:

          Last number I saw & don’t know the year, the USA produces 87 million tons of steel per year whereas China produces over 800+ million tons of steel. Remember, at the end of WWII, the USA was #1 by far steel producer. It’s a long way back. We are now #7 or 8 in steel production per year, but improving under PDT’s leadership.

          Liked by 1 person

      • Wengair says:

        Sir,
        Can you explain in layman’s terms where the tariff money goes?
        I get the ramifications of devaluing their currency, but if we are taking in billions, yet we owe China billions due to our national debt, what good do the tariffs do for us?

        Like

        • GB Bari says:

          Where does the tariff money go?
          U.S. Customs and Border Protection is in charge of tariff collection at each of the several hundred American ports of entry. Before product comes into the U.S., customs agents handle the paperwork that certifies the tariff has been paid by the importer.

          The collect tariff revenue goes into the general fund of the U.S. Treasury. In 2017, the U.S. collected $34.6 billion in tariffs. In FY2020 excise taxes and tariffs are projected to total $157 Billion.

          Liked by 3 people

    • val66 says:

      Yes!!! Manufacturers and businesses moving to Vietnam are not new companies owned by Vietnamese, but rather Chinese owned businesses that moved from China. End result = still Chinese companies & Chinese making money.

      Like

  10. dufrst says:

    Would explain why North Korea has been popping off missiles lately. Kim Jong Un is not in control of his military. The Chinese want it all to be about N. Korea in exchange for the status quo. Trump is not having it because you can’t trust the Chinese as seen in his tweets.

    So, the decoupling from China continues. Time to engage India, Indonesia and Brazil (btw, those trade talks have begun) to be an alternative supply chain to what has been in China. The labor costs in those nations are similar, if not lower than China’s and none of these countries have global supremacy ambitions, not too mention all of them are democracies. Lastly, combined, these three nations have a population in excess of 1.8 billion, with a younger demographic compared to China’s. China’s population is 1.4 billion and aging.

    To me, if no deal is struck this year, then Trump should slap 25% tariffs on all goods and hint the likelihood of 35% tariffs on everything if a deal is not struck before his re-elected. If no deal is struck and Trump gets re-elected, take them for everything they got!

    Liked by 4 people

    • sundance says:

      Liked by 15 people

      • Sentient says:

        Let ’em shoot all the rockets they want. Who gives a f***? In the one in a million chance they ever send an actual bomb our way, we’d incinerate Beijing – and I, a relative peacenik – wouldn’t bat an eye over it.

        Liked by 2 people

      • Dutchman says:

        Doesn’t matter. PDJT has established his line in the sand, and Kim is respecting it;
        No NUKES, NO ICBMS.
        Anything else is setting off a few firecrackers.

        Liked by 2 people

      • MicD says:

        Kim may float the river.

        Like

      • dufrst says:

        You’re absolutely right about it. China thinks it can play Trump by dangling North Korea. And they show their control of NK with these missile tests but it still has not stopped Trump’s positioning.

        Trump has always believed that trade was the way the US could fix all of its financial problems one way or the other. The one way is through more favorable trade deals and the other is through tariffs. Either way, it’s more revenues to the US treasury and the beauty of it all is it comes at foreigners expense while we reap the jobs and revenues we need.

        In the meanwhile, we will have to endure the howling from the Wall Street folks and multinational corporations that they made big bets on but they will adjust their operations and transplant them to Brazil, Mexico, Indonesia and India. Look for a big summit between Modi and Trump at some point this year. That will set the Dragon straight !

        Liked by 7 people

      • TheLastDemocrat says:

        Yes. It is that simple.

        Like

      • JETS says:

        Does China watch the dem debates? Do they think any of these bozos can defeat Pres Trump? Not much chance of a better deal in 2020.

        Liked by 3 people

  11. JeffP says:

    VSG POTUS is doing far more harm to China and other economies than the past 20 Presidents combined in only a little over 2.5 years. A Golden Era has begun again for America. Take hold of the flame of Freedom and carry it to our future of Independence from Outside Influences!!!
    Trump2020! KAG!

    Liked by 7 people

    • mike says:

      VSG POTUS is undoing China’s self-enrichment, removing its giant straw into our economy via corrupt, treasonous deals and politicians.

      That’s not harming China – like I don’t harm a known robber/thief by locking my gate or forting up the house. FTFY

      The Bushes, Clintons and O should have been recognized as foreign agents long ago. The FARA crap on GeorgeP and PaulM are farces given the TREASONs of the deep state politician sellouts for decades.

      Liked by 12 people

      • Bert Darrell says:

        Just curious, mike. When you lock your gate do you also take the robber’s wallet as he approaches your house? If your answer is No, then your comparison with what PDJT is doing to China is not a good one.

        Like

    • So when will Europe wake up and end their VATs, multiple business location tax schemes, and socialism?
      Once that happens, the Muslim version of inbred hillbillies running around their lands will assimilate or be imprisoned.

      Like

  12. redthunder238 says:

    Here comes the MSM claiming Trump is “crashing the stock market” again. LOL You couldn’t make this stuff up.

    Like

  13. Free Speech says:

    Now go lob some more of your dumb rockets in the ocean, Xi. Loser.

    Liked by 1 person

  14. Daniel says:

    It looks like the president has established “cause” for ignoring China’s Panda mask and is politely and directly addressing the dragon.

    This is where the real “war” begins and terms of surrender or simply armistice actually start getting negotiated.

    Liked by 1 person

  15. CopperTop says:

    Good Lord Michigan your elected officials don’t get it. In discussion over what Trump can accomplish for Union Steel and Factories

    Example Kildee on Cavuto 2:40 MT: “Would be a mistake for Trump to walk away from China”

    Sheesh

    Like

  16. ristvan says:

    Well, I got the timing of this wrong in a previous comment. Had speculated PDJT would do this after the scheduled Sept meeting in US, giving China more time to make good on Ag, since the reports were ‘constructive meeting’. The Shanghai meeting must have been worse than PDJT thought it would be.
    The tweet announcement now gives Xi two ‘easy’ chances to show good faith and change the negative dynamic: ag and fentanyl. Else maybe PDJT ‘postpones’ the Sept meeting.

    Liked by 5 people

    • Dutchman says:

      ristvan,
      No critisism of you, but HOW is this “good faith”?
      “So, you made a personal promise, XI to DJT, that you would stop fentanyl.
      Didn’t.
      You promised youvwould buy Ag products,
      Didn’t.
      You have a very long history of consistently promising and renegging.

      Even if you DID these things, your history indicates we shouldn’t reduce the tarifs. In fact, making concrete steps, NOT empty promises on fentanyl and Ag purchases, should be the price for resuming talks!

      China? Fugm!
      ‘Small’ he calls the 10% on 350 billion, LOL! Sounds like 35 Billion $/year to me. And more importantly its on NEW sectors, previously not hit. Gonna bite.

      When do we turn our attention to EU, or is China being used as a teachable moment?
      Come on, BREXIT! Frankly, I want to see the dissolution of EU, almost more than the (hopefully quiet) implosion of CCP.

      I said ALMOST! LOL

      Liked by 2 people

    • Perot Conservative says:

      And let me guess… they buy $10-15 Billion in ag products to forestall the new tariffs… and that helps Q3 GDP. Right?

      How much?

      We want purchases NOW, not future commitments …

      Soybeans.
      Pork.
      Wheat.
      Rice.

      Liked by 3 people

  17. steph_gray says:

    By the way – though in principle the budget deal was again, horrible, the reason I didn’t worry about it too much was exactly this. China tariffs were clearly on the way again.

    Seems to me that VSG’s approach to tariffs here will offset that spending bump – at least to some extent.

    Just a guess – any opinions?

    Liked by 1 person

    • ristvan says:

      I think Trump took the budget deal because he didn’t want Dems making trouble with the election coming. He plan is a landslide in 2020, then deal with deficit spending in 2021. Ditto infrastructure.
      Meanwhile, economic grow will be reducing deficit and debt to gdp ratio. Put USMCA in place, give it a year to kick in. The fiscal problem and solutions will be easier gauged in 2021 than now.

      Liked by 10 people

      • Trump’s brilliance:

        Anything spent on Infrastructure will have to come out of Non-Military Discretionary Spending! 😎

        Liked by 5 people

      • Dutchman says:

        I think the tarifs are going to PAY for the infrastructure. 2 trillion over 10 years? No problem.
        If exfiltration of wealth could build ghost cities and bullet trains all over China, than infiltration of that wealth, BACK into the U.S. can certainly rebuild our infrastructure.

        If exfiltration of wealth to EU has financed their very generous social programs, (retire at 55 with full pension, 30 days off/year, etc.)
        then infiltration of that $ BACK into the US should help make us solvent.

        In fact, for budget hawk fiscal conservstives, taking and passing Sundances Maganomics 101 coarse should make it clear;

        Our huge deficit is largely the result of the exfiltration of wealth out of our country.

        Instead of the U.S. having beautiful infrastructure, ours is crumbling, while China and EU have great infrastructure, new, state of the art.

        Instead of US citisens having a solvent social security system, etc. ours is constantly on the edge if bankruptcy, while EU has “great” retirement system.

        Granted, US Government spending is “out if control”, and the sequesters were largely a con, but “Conmunism stops working, when youcrun out of other peoples money.

        We have been financing Conmunism in China, and Conmunism lite in EU.
        BLEED them dry, and use the,$ to rebuild our infrastructure AND get our financial house in order.

        Liked by 11 people

      • Perot Conservative says:

        And new deals with Japan and the UK.

        Then, tariff round 2.

        Like

      • snellvillebob says:

        When President Trump set out to negotiate a budget deal, he had two primary goals: continue to reduce discretionary spending as a percentage of the economy, and fully fund our military.

        Those goals were accomplished last week when the Trump Administration and congressional leaders struck a deal on spending caps and the debt ceiling.

        A ‘no’ vote on the budget deal is a vote to increase spending.
        By U.S. Senator David Perdue
        https://washex.am/2Yh25OZ

        Like

    • If it’s $300 billion that’s annual so the tariff for 1/4 would be about 7.5 billion dollars. In a multi-$trillion economy, I’m not thinking it does much for GDP as Perot stated.
      Again assuming congruent quarterly tarif income, what’s $7.5 billion compared to the increased spending? I don’t recall the numbers from the spending bill.

      Liked by 1 person

  18. candyman says:

    Franklin D. Roosevelt had his New Deal. And by 2024 Trump will have his Great Manufacturing Reset and written in every liberal economic textbook as the GMR, forever studied by every generation to come.

    Liked by 2 people

    • sturmudgeon says:

      Candyman… c’mon, you know liberals don’t read “economics”…

      Liked by 1 person

    • highdezertgator says:

      The “New Deal” was Socialism! Roosevelt are 1st Dictator!
      Read The Forgotten Man, by Amity Shlaes
      … it offers a striking reinterpretation of the Great Depression. She traces the mounting agony of the New Dealers and the moving stories of individual citizens who through their brave perseverance helped establish the steadfast character we recognize as American today.

      Harry Truman’s statement “the only thing new under the sun is the history we have not read.”

      Liked by 1 person

  19. Betty says:

    When will congress ratify theUSMC treaty?

    Like

  20. MIKE says:

    C’mon, President Eleven, get with the new program. If you’re gonna wait it out, you have about six and a half years to go, maybe more, Or maybe you didn’t see the televised circus sideshows the last two nights…
    And stop with the Locket’s Led Grare, your bombs bursting over there, in McChina, AKA N. Korea.

    Liked by 1 person

  21. DJT2020 says:

    I can hear the screeching in Chyna from here and look forward to reading their state controlled media cry.

    Like

    • Dutchman says:

      DJT2020;
      Can you hear it from your front porch, lol? I think I hear it, too.

      Actually, wait to see postings from A2 etc. on this, but I suspect China fully expected this, unless they are,SOO clueless about this, that they thought
      PDJT was going to soften hus position due to political considerations.

      So, if my math is right, thats another $35 billion/year the treasury will be taking in, that Congress has little control over how its spent, is that right?

      And thats on TOP if what,we’re already taking in?
      Yum yum!

      Liked by 6 people

      • Perot Conservative says:

        Can he route the first year’s new tariff for The Wall?

        1. 30′ Tall

        2. American steel

        Fast. Track.

        Liked by 1 person

        • Dutchman says:

          What I’m going on, is he didn’t need to ask CONgress, in order to funnel $16 Billion of tariff $ to the farmers, he just asked Sunny Perdue, Sec of Ag.

          So, based on THAT, I’m thinking he can put the $ where he wants.
          But, I haven’t deeply researched the statutes, rules etc. on how much latitude he has, on what he can do without CONgress, or Judicial interference.

          Liked by 2 people

  22. spren says:

    I saw Peter Morisi, an economist from Rutgers(?) on the Charles Payne show make a compelling case that Trump should’ve imposed the entire 25% on the $300 billion rather than the 10% he used.

    President Trump had threatened previously of the impending 25% tariff imposition if real progress wasn’t made in the discussions and it is possible China will regard the actual lower number of 10% as a sign of a weakening position by Trump. They are also likely considering the possibility of being able to just wait Trump out until after the 2020 election when they believe he might no longer be a factor.

    Like

    • Dutchman says:

      Firstly, I clearly recall PDJT saying, month or more ago, “maybe 10%, on the remaining 350, we’ll see how it goes!”
      Secondly, I question if Morisi was reccomending DJT’s approach to China, 3-5 years ago. Possible but most economists seem clueless as to what PDJT is doing on trade.
      Thirdly, his name reminds me of the former President of Egypt, which doesn’t inspire confidence,/s lol.

      Liked by 4 people

    • SharonKinDC says:

      Timing is everything. I trust Trump.

      Liked by 2 people

    • dufrst says:

      Trump is giving our companies time to get out of China. He’s putting the writing on the wall with the 10%.

      Liked by 4 people

    • seekingthetruth2 says:

      Another Academic Economist who knows nothing of the real world…I used to hire guys like this as consultants to get their imput and then basically employ the opposite of what they propose! Worked almost 90% of the time. Paul Krugman – Princeton, Austin Goosbee – U of Chicago, Larry Summers “Mister 2% GDP”….long list of losers.

      Liked by 1 person

  23. John Maier says:

    Chairman Xi always has “that look” on his face –except when he is reviewing his military, quite cheerful….

    Like

    • Dutchman says:

      I call it the “IBS Look”, as in constipation, diarhea, or alternating bouts of each.

      DR; “Well (patient name), your problem is,…….IBS.”

      Patient;”Well, YES Dr., you do,…and it IS a problem we SHOULD discuss! But for right now, WHATS wrong with ME?!!”

      Liked by 1 person

  24. MicD says:

    Kim may float the river.

    Like

  25. AMEN to TARIFF MAN!
    Done.with.CHINESE CRACK

    • Dumped-Products CRACK
    … to Emaciate American Manufacturing & Impoverish American Workers

    • Trafficked-Fentanyl CRACK
    … to Genocide American Citizens & Loot America’s Safety Net

    • Access-to-China Markets CRACK
    … to Force Co-Ownership & Steal American IP

    Liked by 3 people

  26. gingergal says:

    And their only hope to stop this is Joe Biden.

    Like

  27. molonlabe28 says:

    It’s about time for McConnell and the other GOP girly-men (think: John Cornyn and Lamar Alexander) to start clamoring.

    Liked by 2 people

  28. Eric says:

    Pray for President Trump. His enemies are very powerful and now getting desperate.

    Liked by 6 people

  29. Fools Gold says:

    POTUS calls his friend Xi and says how big are your nuts ole buddy ole friend?

    MAGA

    Like

  30. Somebody's Gramma says:

    It is GLORIOUS to have a President who communicates with us daily about what is really going on!! I totally understand and appreciate his tactics against all “enemies foreign and domestic”. I appreciate Sundance’s analysis as well. I love this President!!!! And I just wanna say, to everyone who keeps mentioning Biden… he’s so dead in the water. The older folks don’t like him. The younger folks don’t like him. Who is their right minds would vote that guy in? The Dems got nothin’.

    Liked by 5 people

    • jnr2d2 says:

      Dems in same pickle that Repub establishment was in 2016. That is 70+% do not want a establishment guy. As the field narrows to four or five it will continue to be only 30% or slightly more fore Biden. Then what? Biden 35% Warren 35% Bernie 25% misc 5%. No young gun makes it. Can’t even go there for a VP slot – too wacky birds. No moderate VP either – an impossibility. Thus in a brokered convention they force a Biden/Warren ticket.

      Liked by 1 person

  31. Pyrthroes says:

    The reality is that innovative,entrepreneurial free-markets provide incentive risk/reward, whereas collectivist/Statist dirigiste poseurs contribute nothing but beansprout bromides, dining out on “postcards of Uncle Joe” (cartoonist David Low, 1940s).

    Driven by Pres, Trump, Keynes’ rip-snortin’ “animal spirits” are pawing World Trade pastures while Chairman Hsi –not to mention Bad Vlad and Brussels’ snuffle-grunting EU rentiers– retreat to 17th Century “zero sum” mercantilist torpor. Strange how Thomas Edison, Henry Ford, the Wright Brothers never unblock academics’ intellectual aneurysms, whose “persistence fallacy” renders every signal transformation “unexpected”, “a surprise”.

    Though insular, impossibly doctrinaire apologists for Ènarque clerisies, iron rice-bowl mandarinates and nomenklaturas, cannot conceive true growth-and-change, the fact remains that AD 2000 – 2050, then 2050 – 2125 (per the generational “25-year rule” that flipped in 1975) will make the three centuries from 1725 seem like a summer’s day: First, sentient robotics/AI by 2030; second, transhuman “symbiontic exocetes” from 2050; third, gigantic exo-solar refugia from 2075, driven by Earth’s cyclical 102-kiloyear Pleistocene glaciations from AD 1350, due to blanket 60 – 70% of habitable landmasses with ice sheets two miles deep.

    These cliché extrapolations beg the question: When some new Newton, Maxwell, Planck or Einstein emerges, wherein will his peculiar insights lie?

    Liked by 2 people

  32. Wayne Robinson says:

    Cuck fina im sick of the unholy SOBees they do not protect universally united nations rights they are phony bastards and evil

    Liked by 1 person

  33. Bogeyfree says:

    I also wish PT would do some investigating to see which Congress people have strong lobbying alliances and who may have received potential kick back deals from China and Chinese companies.

    Then connect the dots for the American people by documenting their voting pattern and communications when the issue of China comes up.

    This is why we need term limits, audits and restrict foreign entities having direct lobbying efforts with Congressmen.

    To many people in government on the take IMO.

    Liked by 4 people

  34. SHV says:

    ” but rather Chinese owned businesses that moved from China. ”
    ******
    The big Chinese tech companies that make most of the “Brand name” products are Chinese but the wrong kind of Chinese…they are Taiwanese companies, such as Foxxconn.

    Like

  35. Zippy says:

    Promised to buy agricultural products, but did no do so. Promised to abide by WTO rules, but does not do so.

    As I’ve said, they simply cannot be trusted, can NEVER be trusted, and they cannot be conventionally dealt with successfully. The Government Owned Enterprise ruling class will remain insanely rich no matter what half measures we apply.

    They must be driven economically and financially to popular revolt while we still can. It will cause pain here, but nothing like what it will cause there. Just as China is threatening to crack down violently on Hong Kong because they fear a spreading REVOLT, we must do everything to bring that sort of thing to their mainland causing the only thing their fatcats fear, swinging from lamp posts.

    Of course, the UniParty will prevent this and having an economic crash here which adequate measures would cause prior to the 2020 election ain’t a good plan, but Trump needs to go all out when he is hopefully reelected.

    Liked by 3 people

    • Zippy says:

      This is the only thing the Chicom fatcats actually fear:

      The caption on the video says: “The PLA’s Hong Kong Garrison is an important embodiment of China’s national sovereignty, a vital force of safeguarding the ‘One Country, Two Systems,’ and a cornerstone in maintaining Hong Kong’s prosperity and stability. What we have been doing is preparing for war, training hard on enemy-killing skills, and keep our weapons ready and always ready to attack!”

      Like

  36. The Fed has FAILED to neuter the China & EU Currency Manipulation that disadvantages the USA,
    • Magnifying our Trade Deficit,
    • Suffocating our Reindustrialization and
    • Stifling the Job-and-Wage Growth needed to pull SIDELINED and POVERTY-AFFLICTED American Workers … OUT of the Snares of Socialism and INTO Self-Sufficiency.

    POTUS can now execute a POLITICAL TRIFECTA to Make America Greater Again by EXPANDING TARIFFS (raising Demand-for-Workers), DEPORTING ILLEGALS (cutting Supply-of-Workers) and FINGERING the FED (transferring all the political heat for the 2020 Election Season).

    • The 2-Year Budget-and-Debt Deal passed by Congress today suspends the debt ceiling until mid-2021, preventing Shutdowns and Sequestration-driven automatic Spending Cuts during the 2020 Election Cycle.

    • He can now STRETCH TARIFF ESCALATIONS out for the next SIX YEARS, from China to Vietnam to the EU and India, TRIGGERING Globalist Manufacturers to swing from Offshoring to Onshoring their Plants back to the USA.

    • If that’s not enough for Manufacturers who DELAY Reinvestment in America and Repatriating Foreign Earnings to fund it, watch for POTUS to LIBERATE Stagnant Investments in their Stocks by INDEXING CAPITAL GAINS to Inflation. Watch those trapped investments in lagging Globalists flee to Make-in-America Manufacturers!

    • Watch him “PAY for those CAPITAL-GAINS TAX CUTS” with Tariff Receipts, SUSTAINABLY positioning America as the “Most Hospitable Economic Environment for Investment on the Planet”.

    • Finally, he can REFORM the FED, replacing its fraudulent “INDEPENDENCE” with CONSEQUENCES for Future Failures by requiring every Fed Member to place ALL Assets in a BLIND TRUST invested ENTIRELY in the Wilshire 5000 Index). 😎

    Liked by 6 people

  37. Perot Conservative says:

    Recently we had 9 integrated steel mills, down from 13 (2000). Not sure how up to date those numbers are.

    ABC News: “On an average month, China produces nearly as much steel as the U.S. does in a year,” the Commerce Department said in a summary of the report. In 2017, there were 36 million metric tons of steel imported to the U.S., and only 10.1 million metric tons of steel produced, according to the report.Mar 8, 2018″

    So we imported roughly 80% of our steel in 2017.

    I hope that number is changing.

    Liked by 1 person

  38. fangdog says:

    IMO, Trump is looking at a bigger picture. That is the end of a Communist Government ruling the Chinese people while America gets back what Americans have in a sense paid China’s Communism for the past 40-50 years.

    China’s waiting for 2020 with Trump being replaced tells me China is as stupid as Democrats and watch too much fake-news.

    Liked by 1 person

    • redthunder238 says:

      We all know the Dems couldn’t win in a clean fight. They’re gonna pull out ALL the stops though. Fraud will be blatant and the MSM will completely ignore it. More likely they’ll try to claim TRUMP is the one stealing votes….again. Honestly, IMO there’s a VERY good chance of a civil war breaking out. If Trump wins the riots are going to be insane. The Leftists cannot handle reality.

      Liked by 2 people

  39. alonzo1956 says:

    POTUS has given the Chinese every opportunity to get to the negotiating table and get serious. He has also told them that if they don’t strike a deal before the 2020 election, the terms of the deal would not be as good as they would be today. The Chinese are calling his bluff. They cannot say they weren’t fairly warned.

    There is never a dull moment In President Trump’s America and I am proud to have him as my President. Even with all of the headwinds he faces on every front, he still trudges forward incessantly. He is currently the most consequential POTUS of my lifetime and he may become the most consequential POTUS in the history of America.

    Liked by 8 people

    • Zippy says:

      “The Chinese are calling his bluff.”

      Because the “will ALWAYS be insanely wealthy” Chicom class fears ONLY economic collapse and an associated REVOT and the measures being applied simply aren’t even close to being enough to bring that about. That required level of economic warfare will hurt us here, too, and the Chicoms know Trump can’t afford that sort of thing just prior to the 2020 election.

      When he’s reelected he needs to – CRUSH THEM – economically and financially while we still can and, believe me, we CAN and relatively easily. However, as I’ve said, it will cause significant pain here until our industries rebuild and commodities readjust away from Chinese demand to everyone BUT Chinese demand.

      Of course, the globalists and the UniParty (but I repeat myself) will resist tooth and nail, but it is the ONLY route which will truly resolve our problems long-term. China will NEVER “play fair” until they are forced to the brink or beyond and perhaps not even then. You think OUR system is corrupt? Their system is like an organized crime network. Seriously.

      Liked by 5 people

      • Baby Hurley says:

        That’s the brutal truth. And they don’t care about 2020 anymore, they’re waiting for the next cycle and they will funnel everything they can into supporting (or creating if needed) the most corrupt, incompetent, and spineless dem they can get elected.😡😡😡

        Like

  40. redthunder238 says:

    Fox News radio is more obvious by the day. They SPIN just as much as the admitted Leftist channels.

    Like

  41. Daniel F Jackson says:

    Trump is slowly bleeding China’s economy.

    Liked by 1 person

  42. TradeBait says:

    China is bluffing while holding a garbage hand. PDT doesn’t fall for bluffs. Waiting until 2020 actually works in our favor. PDT is going to win in a landslide and all of our major companies will have totally replaced the China supply chain. China will focus on locating plants in other countries to escape the tariffs, but all of it is trackable and subject to trade agreements between their host country and the US. Once consumers realize they get better stuff from other countries at similar prices, China will be dealing with nothing but third world shizholes.

    Or they can do things the right way. Whatever…

    Like

  43. dallasdan says:

    The last of the President’s tweets puts more lipstick than I have ever seen applied to a pig.

    The 401k accounts he likes to tout will be bruised.

    Oh, well, MAGA is focused on the greater good.

    Liked by 1 person

  44. I think we need to keep an eye on how Mexico will react regarding “enforcing” and stopping illegals.
    I think they are half-way through their 90 days notice isn’t it?
    Interesting times!

    Like

  45. ltravisjr says:

    Note this is what I call “fundamental transformation”, or more correctly, “fundamental RESTORATION” of our county.

    That said, what is the timeline of this realignment of trade, and the new economy and industry downstream of it? When we effectively sever China as a trading partner and do we have factories ready and waiting to fill the vacuum, or do we have to re-epuip and modernize them for service? Will we need to build a lot of new factories? Do we need to rework supply chains, business relationships, and whatever other practicalities are necessary for essentially rebuilding industry?

    These times are incredibly exciting but how long will the “restoration” period take before its complete and we realize our new normal?

    Liked by 1 person

    • ltravisjr says:

      Pardon my typos. A small phone and autocorrect mess me up every time. Basically I was just wondering how quickly and easily it will be to re-establish our manufacturing base and whatever it depends on after so many years of neglecting it. I have no idea of the timeframe.

      Like

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