Stupid is As Stupid Does: Trump Hits China With $200 Billion More Tariffs

The global trade war escalated moments ago when Trump fired back with a threat of $200 billion more tariffs.

In response to US tariffs, China put $50 million of its own tariffs on US good. Trump did not like that and responded with a threat of $200 billion more tariffs.

CNBC reports Trump Fires Back at Beijing with Threat of New Tariffs on $200 Billion in Chinese Goods.

President Donald Trump has requested the United States Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent.

The new duties will go into effect "if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced," the president said in a statement provided by the White House late on Monday.

The move comes after the U.S. on Friday announced that it would impose a 25 percent tariff on up to $50 billion of Chinese products. Tariffs on an initial list of goods worth some $34 billion will kick in on July 6.

Monday's proposed measure is in response to Beijing's decision to raise tariffs on U.S. exports, the White House statement said.

Stupid is As Stupid Does

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Not to worry. Trade wars are very winnable.

China's prices will rise. US prices will rise.

We call this "winning"

Mike "Mish" Shedlock

Comments (25)
No. 1-25
tz1
tz1

Why isn't isn't it "Stupid" when China (or Mexico, India, the EU, etc.) imposes tariffs on the US, but only when the US imposes tariffs?

Roger_Ramjet
Roger_Ramjet

The Fed has been working so hard for years trying to create 2% inflation. This may do the trick.

2banana
2banana

China has a $300 billion/year trade surplus with America. Nearly every country in the world has a trade surplus with America. No wonder no one wants to change the status quo. We have been played the fools because...why again? But America is only at fault for not wanting to be the trade fool anymore.

Kinuachdrach
Kinuachdrach

"Stupid" is China -- whose massive trade surplus with the US shows they have been winning this long-running trade war that prior administrations pretended was not happening. Huge trade imbalances are unsustainable. Recognizing that, the Chinese should start to reduce their tariffs towards the much lower general level of the tariffs the US imposes on China.

But the Chinese are counting on the their allies inside the US undermining the US Administration and forcing the US to back down and accept damagingly-unfair trade terms. That is how it has always worked in the past. Let's hope the Chinese are making the mistake of fighting the last war.

Tengen
Tengen

So the tit for tat war continues. China needs to figure out how to make this painful enough for US business that they start to retaliate politically and/or threaten job cuts. The Chinese should be able to endure for a while by subsidizing businesses harmed by tariffs, funneling money to them that would normally be earmarked for US treasuries.

In the meantime, consumers will get to pay more for goods. Not sure why Trump gets fanfare for these tariffs. If supporters really cared about average Americans, they'd be up in arms against the Fed and central bankers, not the Chinese.